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, prepared by economic officers in US embassies worldwide, aims to guide investment decisions by US companies.
Kenya's investment climate has improved significantly, with the country becoming an attractive location for regional or pan-African operations, the report states.
Kenya's ranking in the World Bank's global report on the ease of doing business has also improved substantially.
Passage of tax and finance laws, as well as other business reforms, have contributed to this positive trend.
Kenya's macroeconomic fundamentals remain strong, with a GDP growth rate of five to six percent over the past five years, six to eight percent inflation, and improving infrastructure.
However, corruption remains a significant concern, with reports suggesting that it often influences the outcomes of government tenders.
US firms have had limited success bidding on public procurements due to corruption.
President Uhuru Kenyatta's campaign against corruption has shown some progress, with anti-corruption agencies coordinating more effectively.
However, no high-level officials were successfully prosecuted and convicted for corruption in 2018.
Property rights in Kenya are also a concern, with a cumbersome and opaque process required to acquire land raising concerns about security of title.
Additionally, property ownership can revert to other occupiers, including squatters, if the property remains unoccupied.
Enforcement of intellectual property rights in Kenya is marred by corruption, with failures to collect penalties from law violators and to impound imports of counterfeit goods.
Kenya's vulnerability to terrorist attacks is also a concern, with security expenditures representing a substantial operating expense for businesses.
