Kenya has emerged as an African ICT hub, in innovative technologies, particularly in the mobile telecommunications sector. Opportunities exist for innovative firms to reap from the country’s expanding ICT industry. In the recent past, Kenya has generated very many ICT innovations, hence the relatively good ranking in capacity to innovate. What however is missing is converting the new innovations into commercial products run by successful businesses.
Kenya’s banking sector is the most developed in the region. Although the number of commercial banks has for the last 15 years remained at slightly more than 40, a number of initiatives, including the rapid expansion of money transfer through telephones and electronic mobile banking services, raised the quality of financial services and expanded access. Development of this sector focuses on increasing savings rates, reducing the share of the population without access to a bank account, and addressing the cost of borrowing.
Kenya aims to become a prime supplier of basic goods to the eastern and central African markets before moving into the manufacture of niche products for other markets. The strategy proposes to invest in training, research, and development and attract large investors in agro-processing industries to target local and international markets. The development of economic clusters and SME business parks is envisaged.
As a leading sector, the aim is for Kenya to be among the world’s top 10 long-haul tourist destinations with an increase in contribution to GDP, hotel beds, and spending per visitor. Diversification of the tourism product includes the development of three resort cities, increasing premium safari parks, creation of niche products (cultural, eco-sports, and water-based tourism), revamping business tourism, and investing in new conference facilities.
Kenya has remained one of the traditional agricultural countries that are keen to develop and implement policies that fully embrace opportunities brought by commercial farming, value addition, and promotion of agriculture-for-industry. Kenya has long been accused of a lack of value-addition initiatives both for locally consumed products as well as those exported. For example, coffee beans are exported to Europe and America for a low price only for Kenyans to import processed coffee at a premium cost. The same situation is replicated in honey, leather, wool, and crisps. Agro-processing in Kenya has a huge potential as it creates employment, and government revenue as well as supports other industries. A case in point is the juice industry which has grown through the support of local farmers especially those cultivating mangos, oranges, pineapple, and passion fruits. The demand is ever-increasing and this presents a major investment opportunity both for local and international investors. Emphasis is placed on increasing productivity in the agriculture, livestock, and fisheries sector at the same time as expanding processing activities. The aim is to improve crop yields, make use of currently uncultivated land, reform land use policies, expand irrigation schemes, and better brand Kenyan products.
Kenya’s mining sector consists of non-metallic minerals. The country has considerable reserves of industrial minerals, such as soda ash, kaolin, fluorspar, and gemstones. Other minerals include Limestone, Barite, Gypsium, Salt, Dimension Stones, Silica Sand, Kisii Stone (Soapstone), Manganese, Zinc, Wollastonite, Graphite, Kaoline, Copper, Gold, Lead, Nickel, Iron ore, Carbonic Dioxide, Chromite, Pyrite, Various Clays, Niobium and Rare Earths, and Phyrochore. Major mineral sand deposits like titanium ores – rutile, ilementine and zircon – have been discovered along the coast. Significant concentrations of Coal deposits exist in the Mui Basin. Discoveries of oil in the Tertiary Rift Basin and gas in one of the offshore wells of Lamu Basin indicate the existence of viable quantities of oil and gas and the potential of Kenya to become an oil and gas producing nation.
Kenya has an underdeveloped upstream oil sector thus available investment opportunities to boost the oil industry.
Availability of market due to high population, Availability of land, Available market for construction materials e.g tiles, cement
Plastics & Chemicals
The plastics industry produces a wide range of goods made of polyvinyl chloride (PVC) which are imported in form of granules. Attractive investment opportunities in chemicals, pharmaceuticals, and fertilizers.