Kenya risks losing billions in Gulf investments unless the government tackles corruption, bureaucracy and outdated systems, industry leaders have warned.
The warning comes months after Kenya and the United Arab Emirates (UAE) signed a Comprehensive Economic Partnership Agreement in January aimed at eliminating trade barriers, simplifying customs procedures and boosting investment in agriculture, energy, logistics and manufacturing.
Trade between the two countries reached Sh445 billion in 2023, with the UAE ranking as Kenya’s second-largest source of imports and sixth-largest export destination.
Speaking at the Gulf-Africa Investment Summit on Thursday, Esther Muchemi, chair of the Gulf-Africa Investment Nexus (GAIN), explained that Gulf investors have liquidity but face barriers blocking their entry into Kenya.
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“The government must make interventions that will promote manufacturing in the country and ensure there is a friendly environment for investments,” observed Muchemi.
Stakeholders cited lengthy documentation processes, restrictive regulations and lack of information as key barriers.
They noted that limited funding for startups continues to shut out many entrepreneurs.
Princes Mutisya, chief executive officer of GAIN, told journalists that trade barriers and mistrust between the regions must be addressed before Kenyan firms can access Gulf financing.
“For African and especially Kenyan businesses to secure funding from the Gulf, trade barriers and mainly trust issues between the two regions must be addressed to unlock financing and investment opportunities,” explained Mutisya.
Michael Gathu, chief representative of Dubai International Chamber East Africa, observed that partnerships with Gulf investors will help small and medium enterprises gain financing, markets and technical support.
He added that agribusinesses must adopt technology and value addition to reach Gulf markets.
Martin Chomba, chair of the Petroleum Outlets Association of Kenya, explained that Gulf firms have the capacity and technology to boost Kenya’s oil and gas industry if the government clears hurdles that deter investors.
“These collaborations foster stronger market linkages and help to create new opportunities for businesses to grow and connect with global value chains,” observed Chomba.
The summit brought together Gulf and African industry leaders and chambers of commerce members to discuss ways of unlocking trade and investment.
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on WhatsApp
Kenya risks losing billions in Gulf investments unless the government tackles corruption, bureaucracy and outdated systems, industry leaders have warned.
The warning comes months after Kenya and the United Arab Emirates (UAE) signed a Comprehensive Economic Partnership Agreement in January aimed at eliminating trade barriers, simplifying customs procedures and boosting investment in agriculture, energy, logistics and manufacturing.
Trade between the two countries reached Sh445 billion in 2023, with the UAE ranking as Kenya’s second-largest source of imports and sixth-largest export destination.
Speaking at the Gulf-Africa Investment Summit on Thursday, Esther Muchemi, chair of the Gulf-Africa Investment Nexus (GAIN), explained that Gulf investors have liquidity but face barriers blocking their entry into Kenya.
Follow The Standard
channel
on WhatsApp
“The government must make interventions that will promote manufacturing in the country and ensure there is a friendly environment for investments,” observed Muchemi.
Stakeholders cited lengthy documentation processes, restrictive regulations and lack of information as key barriers.
They noted that limited funding for startups continues to shut out many entrepreneurs.
Princes Mutisya, chief executive officer of GAIN, told journalists that trade barriers and mistrust between the regions must be addressed before Kenyan firms can access Gulf financing.
“For African and especially Kenyan businesses to secure funding from the Gulf, trade barriers and mainly trust issues between the two regions must be addressed to unlock financing and investment opportunities,” explained Mutisya.
Michael Gathu, chief representative of Dubai International Chamber East Africa, observed that partnerships with Gulf investors will help small and medium enterprises gain financing, markets and technical support.
He added that agribusinesses must adopt technology and value addition to reach Gulf markets.
Martin Chomba, chair of the Petroleum Outlets Association of Kenya, explained that Gulf firms have the capacity and technology to boost Kenya’s oil and gas industry if the government clears hurdles that deter investors.
“These collaborations foster stronger market linkages and help to create new opportunities for businesses to grow and connect with global value chains,” observed Chomba.
The summit brought together Gulf and African industry leaders and chambers of commerce members to discuss ways of unlocking trade and investment.
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By David Njaaga