This archive report was first published on 14 July 2019.
On July 11, 2019, the US State Department released its annual 'Investment Climate Statements' report, which assesses the receptivity of over 170 countries to foreign investment.
The report highlights Kenya's positive investment climate, citing improvements in the country's ranking in the World Bank's Ease of Doing Business Index and the passage of tax and finance laws.
Kenya's macroeconomic fundamentals are also commended, with the report noting the country's strong GDP growth, low inflation, and improving infrastructure.
However, the report warns that corruption remains a significant challenge to foreign investment in Kenya, with many reports suggesting that it often influences the outcomes of government tenders.
US firms have reportedly had limited success bidding on public procurements, and the report notes that no high-level officials were successfully prosecuted and convicted for corruption in 2018.
The report also highlights concerns over property rights in Kenya, citing the cumbersome and opaque process required to acquire land and the risk of property ownership reverting to other occupiers, including squatters.
Enforcement of intellectual property rights in Kenya is also marred by corruption, with the report pointing to failures to collect penalties from law violators and to impound imports of counterfeit goods.
Kenya's vulnerability to terrorist attacks is another concern, with security expenditures representing a substantial operating expense for businesses in the country.
