Kenya has been repeatedly termed as a ‘hotbed’ of investment opportunities in defence of the outrageous branding of the country as a hotbed of terror by CNN back in July.
This is true, not only because of its opportunities but because of the ease of doing business when compared to a majority of sub-Saharan countries.
For starters, it is East Africa’s largest economy and has a consumer market that is growing rapidly with remarkably wide market access.
Additionally, its strategic geographical location makes connectivity with the rest of the world easy hence opening it up for investors. Kenya also has vibrant capital markets and a well-established private sector among others.
As far as where to put your money is concerned, we have listed 10 key sectors, including the available projects in those areas as guided by an investment manual by the Kenya Investment Authority (KenInvest).
The proposed 400MW Meru Wind project, which will be undertaken in three phases, provides opportunities for EPC contractors to design, supply, install, test and commission Phase 1 of the project. Additionally, equity partners are required for subsequent phases.
The 140MW Olkaria 5 project that is being explored by Kenya Electricity Generating Company (KenGen) is endowed with geothermal energy for the provision of steam and power. Investors in the project are set to benefit from opportunities such as advisory services, consultancies, financing and EPC contract among others.
Another viable project to invest in energy is the 1.5MW Gitwiki Hydro Falls, in Meru County. A public-private partnership project, the payback period of the development is seven years. According to KenInvest, the annual projection period is US$657,000.
Kandebene Wind Project in Tigania East is proposed to generate 50MW. According to KenInvest, the project has an annual revenue project of US$ 14.45 million with an estimated payback period of seven years.
Kenya’s road to improving its infrastructure has seen more and more transport projects being started in order to meet Vision 2030. Transport sector projects to invest in include:
The Lamu Port Southern Sudan Ethiopia Transport Corridor Project (LAPSSET) is one of the most viable projects to invest in. Investors of the project will use the build-operate-transfer investment method.
Another project to consider investing in is the Nairobi Commuter Rail whose promoter is Kenya Railways Corporation. According to the manual by KenInvest, the project is seeking partners to run the commuter service of the rail and will include the provision of rolling stock.
“The new rail line will provide expanded, safe, affordable and efficient rail commuter services in Nairobi with the additional benefits of decongesting the capital city’s roads,” reads the manual.
The Ministry of Tourism is promoting the building of Isiolo Resort whose investment is US$ 184 million. The project will include the development of a five-star hotel of four hundred rooms, two-three star hotels of three hundred rooms, conference facilities, an office park and a car park.
Tourism Finance Corporation is promoting the Mombasa International Convention Centre whose investment is undisclosed. The project entails the development of a multi-purpose convention centre, with a contemporary design to ensure large-scale meetings, events and conferences can be facilitated in Kenya.
Real estate is without a doubt one of the most lucrative sectors to invest in Kenya. Konza City Technopolis is therefore one of the most viable projects to invest in. Promoted by Konza Technopolis Development Authority, its estimated investment is US$ 14.5 billion and is to be carried out through joint venture participation.
“The project will comprise a business processing Offshoring Park, together with a residential area and a modern central business district,” says the report.
There are viable projects to invest in in the education sector. Moi University for instance has constructed seven student hostels and blocks to accommodate over 9,000 students. The build-operate-transfer model is being used by investors to invest in the project.
Other projects in the education sector include Embu University College student accommodation, Maseno University Student Accommodation hostels and Egerton University student accommodation hostels among others.
Jamii Bora Bank, which focuses on small and medium entrepreneurs seeking to scale up to become future corporate, has expansion plans underway. The bank is therefore seeking either equity or long-term debt to expand and match the growing demand of its clients.
“Upcoming projects in the finance sector include the building of Nairobi International Financial Centre which is being promoted by The Treasury,” it explains.
The Tana Delta Irrigation Sugar Project is seeking an estimated investment of up to US$120.402 million. The project involves the development of twenty thousand hectares of sugar fields, the construction of a ten thousand hectares sugar processing plant, the installation of a 34MW cogeneration power plant and the installation of an ethanol plant with a capacity of 75,000 litres per day.
On the other hand, the Fish Port Development Project, which is promoted by Coast Development Authority, needs an estimated investment of US$ 820 million through public-private partnerships.
The water supply sector has also not been left behind as far as areas to invest in are concerned. For instance, the Mwache Multipurpose Dam Development projects in Mombasa need an estimated investment of US$ 285.04 million through public-private partnerships. It will see the construction of an 83.7-metre-high dam with the capacity to produce 47.45 million m3 of water per annum for domestic use.
Sabaki River Basin Integrated in Malindi is also seeking a public-private partnership in order to raise US$ 100 million. Promoted by Coast Development Authority, the project is set on 10,000 hectares. It will involve crop farming, livestock production and aquaculture among others.
Kenyatta National Hospital is seeking to build a 300-bed hospital in its private wing. In a build-operate-transfer partnership, the investor will finance, construct, operate and maintain the envisaged seven-storey building, a project that will need an estimated US$ 36 million.
Other projects in the sector include those promoted by the Ministry of health such as equipment lease and infrastructure improvement, an oxygen plant and ICT services at Kenyatta National Hospital
Coast Development Authority is also promoting the Shimoni cement production project. With a requirement of an estimated investment of US$ 249.428 million, it will see the development of a cement production plant intended for domestic and export use.
The sector also has other projects to invest in. These include Flat Glass Production which is promoted by the Coast Development Authority and Dongo Kundu Special Economic Zones which is being promoted by the Ministry of Industrialization and Enterprise Development.