Trade ministry seeks Sh50b in direct diaspora investment
The Ministry of Trade, in collaboration with the Kenya Investment Authority (KenInvest), has unveiled an ambitious Sh1 trillion initiative to bolster the country’s economy.
As part of this strategic plan, the government aims to raise Sh50 billion from Kenyans residing abroad.
The primary objective is to address concerns about the rising cost of living and enhance overall economic conditions.
The announcement was made on December 20, 2023, during the official launch of KenInvest’s third-cycle Strategic Plan, outlining a comprehensive roadmap for the organisation from 2023 to 2027.
The Ministry expressed confidence in realising its economic revitalisation goals through this plan.
The primary objectives of this plan include increasing the visibility and awareness of bankable investment opportunities in Kenya, as well as enhancing targeted efforts in promoting, attracting, and retaining a diverse range of both local and international investors.
Integral to the success of these objectives are key performance indicators, including the tracking of 100 per cent of investments by KenInvest, annual facilitation of at least 100 Small and medium-sized enterprises (SMEs), and the ambitious target of up to Sh1 trillion in investments and KES 50 billion in direct diaspora investments by 2027.
The new Strategic Plan is aligned with the Government’s Bottom-Up Economic Transformation Agenda (BETA), Vision 2030, the Fourth Medium Term Plan (MTP IV), EAC Vision 2050, African Union Agenda 2063 and the United Nations Sustainable Development Goals (SDGs).
Trade Cabinet Secretary Rebecca Miano, who was in attendance, said that the government would ensure that the investors get a better deal for their money.
“We aim to implement an investment promotion and facilitation framework that streamlines the process for potential investors by reducing bureaucratic hurdles and providing clear procedures, we will enhance the ease of doing business in Kenya,” the CS said.
According to her, the focus was not only on those living outside the country but also on those living in Kenya.
Building upon the successes of its predecessor, the new Strategic Plan is poised to elevate Kenya’s economic landscape by actively promoting and drawing in impactful investments, with a keen emphasis on generating wealth and employment opportunities.
In the 2023–2027 Strategic Plan, KenInvest outlines key focus areas, including Targeted Investment Promotion, Harmonised Investment Facilitation, Data-Driven Research and Policy Advocacy, and the establishment of an Exemplary Investment Promotion Agency.
The objectives encompass elevating the contribution of Foreign Direct Investment (FDI) to Gross Domestic Product (GDP) from 19% to 24%, facilitating a minimum annual investment of Sh2 billion, executing the Kenya Investment Policy, and bringing into operation the proposed National Investment Council (NIC).