Agriculture reaps big as Kenya secures Sh377 billion investment deals

President William Ruto speaks at the Kenya International Investment Conference held in Nairobi. [PCS]

At least Sh377 billion ($2.9 billion) worth of investment deals were formally announced on Wednesday as President William Ruto officiated over the fourth Kenya International Investment Conference (KIICO) in Nairobi.

The 20 deals across seven different sectors are expected to expand the job market by 63,000.

The deals involve both local and international companies in key sectors namely: agriculture, real estate, manufacturing, Business Process Outsourcing (BPO) & telecommunication, mining, healthcare, and energy & solar generation.

A majority of the deals are in the manufacturing sector (eight), followed by agriculture (four), healthcare (three), real estate (two) and one each in BPO & telecommunications, mining and energy & solar generation.

However, in terms of value, agriculture leads with Sh116.6 billion, followed by real estate (Sh81.9 billion), manufacturing (Sh80.1 billion), mining (Sh45.5 billion), healthcare (Sh40.3 billion), energy and solar generation (Sh9.2 billion) and BPO and telecommunication (Sh1.3 billion).

Similarly, agriculture is also the sector expected to create the most jobs about 27,250 followed by manufacturing 25,850, real estate 3,640, BPO & telecommunications 2,000, healthcare 2,000, mining 1,500 and energy & solar generation 1,000.

This brings the total number of jobs expected to be created to 63,240.

Sukari Industries, Elgon Kenya Limited, ADEC Innovations, Malindi Solar Ltd and Devki Group are some of the businesses that have made the investments.

The investments, which President Ruto said are at different stages of implementation, are spread across Tana River, Mombasa, Nairobi, Machakos, Uasin Gishu, Kilifi, Kericho, Bungoma, and Kiambu counties.

“The majority of these investments are already at advanced stages of implementation, with several already breaking ground. Collectively, they will create 63,000 quality jobs for Kenyans,” said President Ruto at the event that was also graced by Mozambique President Daniel Francisco Chapo.

The event was also attended by Prime Cabinet Secretary Musalia Mudavadi, Cabinet Secretary Ministry of Trade Investments and Industry Lee Kinyanjui, ICT & Digital Economy CS William Kabogo and Public Service and Human Capital Development CS Geoffrey Ruku, Kenya Investment Authority (InvestKenya) Chief Executive John Mwendwa among other officials.

President Ruto spoke highly of Kenya’s positioning as an investment hub in the region saying it anchors the East African Community (EAC) market of more than 330 million consumers and the Common Market for Eastern and Southern Africa (COMESA) of over 680 million.

“Just this week, we finalized negotiations with the Government of China on a bilateral trade agreement that will open access to an additional (market) valued at about Sh2,470 trillion (USD 19 trillion), further expanding opportunities for investors,” he said.

He said the government is strengthening the country’s tax administration, improving energy competitiveness and streamlining industrial incentives to make the Export Processing Zones and Special Economic Zones into a more coherent, transparent and investor friendly framework.

President Ruto said to further support investment decisions, the government has developed an Investment Projects Catalogue, a comprehensive deal book that brings together Kenya’s most promising and investment-ready opportunities, and which will be showcased at the conference.

The President used the platform to sell the Sh5 trillion (USD 40 billion) National Infrastructure Fund (NIF) where he detailed the construction of 50 mega dams which will play a significant role in food security through irrigation fed agriculture.

“And this is where you come in. We invite you to partner with us - to invest, to build, and to be part of Kenya’s transformation in a truly win-win partnership,” he said.