The United Nations Development Programme, World Bank, and Kenya Investment Authority (KenInvest) have partnered to develop and implement an Investment Facilitation Framework and Foreign Direct Investment (FDI) Attraction Strategy.
The framework is aimed at creating a transparent, predictable, efficient, and trusted mechanism for effective investment facilitation.
Speaking during the launch of the partnership in Nairobi, Investments, Trade and Industry CS Rebecca Miano lauded the partnership saying it will make it easier for investors to invest, conduct their business, and expand their operations in Kenya.
Through the partnership, Kenya will streamline procedures related to domestic and foreign investor attraction and also improve coordination and cooperation among actors in the investment cycle, the CS noted.
She lauded the role played by the National Investment Council (NIC), a body mandated with providing an overarching coordination mechanism to support the growth of investment in Kenya.
The government has set a target to attract Foreign Direct Investment to the tune of $10 billion (Sh1.52 trillion).
To unlock FDIs and position Kenya as a competitive investment destination, the National Investment Council through its Secretariat, Kenya Investment Authority, has developed an Investment Facilitation Framework with a view to creating a transparent, predictable, efficient, and trusted mechanism, the CS noted.
Through the partnership, the government will leverage UNDP’s global network to implement the framework as well as work with them as a project manager, to support key priority areas.
These include legislative and regulatory reforms to remove barriers to investment attraction; investment facilitation framework, including design and operationalization of an Investor Facilitation Platform; and institutional capacity development including organization review and development of a strategy to strengthen Kenya Investment Authority.
UNDP Resident Representative Anthony Ngororano said: “As a key partner in Kenya’s development journey, we are gearing up for a collaboration with KenInvest. Together, we aim to remove barriers to investment and strengthen the investment facilitation journey.”
World Bank Senior Private Sector Development Specialist Elizabeth Kibaki-Obiero, said the global lender will support the government through Kenya Investment Authority, to provide practical measures aimed at improving transparency and predictability in the investment climate.
CS Miano said the ministry is looking to review the legal framework to support investments.
“We are keen to review some of the laws and policies that have been overtaken by the changing times to make it easier for investors both foreign and domestic to tap the various business opportunities that we have across Kenya, for both the benefit of our economy and the interest of investors,” Miano said.
Some of the legislations on investment promotion were enacted in 2004 and need to be aligned with the 2010 Constitution, she noted, that established the devolved system of governance and did away with local authorities.
“We have kicked off the review of the Investment Promotion Act 2004 to align with the Constitution and to make it responsive to the dynamic nature of the globe, as well as the domestic investment environment that continues to present new challenges”, Miano added.
Kenya Investment Authority CEO June Chepkemei indicated that the partnership will be supported by a robust strategic plan under development.
“We have made progress with regard to our strategy development covering our next growth cycle of 2023/24 – 2027/28, “Chepkemei said.
According to KenInvest, the Investment Facilitation Framework will be a great enabler for sustainable development, by facilitating the attraction and retention of FDIs.
It will also help in enhancing the quality of FDIs in the light of national strategies; growing Domestic Direct Investments (DDI); and enhancing international cooperation.