Investment Promotion in Kenya Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Investment Promotion in Kenya Case Solution

2.3 Developmental Challenges

However, Kenya has succeeded in the last decade and has developed in terms of investment purposes where its GDP was recorded at 6% in 2016 and 5.6% in 2015, which was mostly from the private and public sectors. But the country faced some developmental challenges because of political influence and some bureaucratic activities which decreased the investments in the private sectors, which resulted in downsize by the year 2017. During that time, the country faced an adverse condition of weather, political instability, volatility in imported goods and higher inflation rate. The developmental challenges also included the unemployment, poverty and unequal distribution of wealth among the people. The country faced the economic insatiability, because of the agricultural sector getting affected by the extreme weather conditions, which devastated the crops, resulting in the higher loss being reported in the country.

On the contrary, the promotional agencies played their part and increased the investment ratio by the year 2019. The investment activities were promoted more, after the devastating loss and the country grew by the 6% by the end of 2019 after the foreign investment and mega plan for reconstructing the strategic policies. (See Exhibit 2)

3. Strategies and Policies

The strategic focus for the next 5 years’ plan is to enhance the high investment ratio from the local and foreign investors and grow the private investments from the foreign direct investment and direct investment, which could have positive impact on the employment opportunities, increasing the foreign exchange and decreasing the debt of Kenya.

The KenInvest has made strategies and favourable policies for the investors under the legislation and investment act.

3.1 Objectives

The proposed strategic objectives for the next five years’ plan by KenInvest are:

Attract the FDI (foreign direct investors) and DI (directinvestors) to invest in Kenya and make higher investment in the country and create job opportunities for the local people.
To build the Kenya’s multinational cooperation’s and support them.
Provide leadership support and information to the investors.
Enhance the partnership with stakeholders who are interested in making private sector investments.
Develop the country’s manufacturing industry and sustain the economy.

3.2 Kenya’s Policy for Investors

Kenya’s investment policy is made under the act of investment where the investors are given validation and highly coordinated to invest in the country. Moreover, they are involved in making key decisions for the country and investment approaches. Kenya also works with the developed economies to take better strategic support and ideas for investment opportunities. The exemptions are given to the investors.

3.3 Partnerships

Kenya has built the string partnership with the international and local partners for the development and investment in the country. It has the healthy relationships with Irish embassy, equity bank and East Africa trade hub.

3.4 Support to County Governments

KenInvest is working with the highly efficient economies and developed countries where they provide the facilitation and investment directions to Kenya. Moreover, the country’ prospectus is also published for the tool of country governments.

4. Key Strategies and their Developmental Purpose

The key strategies and their developmental approaches are described in the table where the agency has aimed to support the direct and foreign investment and adequate policies which increase their interest in Kenya.

4.1 Strategy 1

To develop and build the investment promotional activities which target the higher economical sustainability and impacts of FDI and DI. The strategy also includes the facilitation and service care to the investors who are the stakeholders and provision of suitable environment to them for investments. The service also includes the digitalization and automation.

4.2 Strategy 2

This strategy is made for the multinational organizations’ support and develops a successful implementation plan for them. Moreover, the strategy is also focused on developing a capacity centre where the entrepreneurs must be provided with services and different ideas to invest in.

4.3 Strategy 3

This strategy resolves around the surveys and implementation of different policies and provides a linkage with the investors. Furthermore, the aim of this strategy is to solve different obstacles which are the hindrances in the developmental aspects

4.4 Strategy 4

This strategy is made to increase the capacity and support the action plan where the objective is to sustain the long term capability and to develop the staff management and capability to implement the strategic plan.

4.5 Strategy 5

The purpose of this strategy is to make the partnership plans and collaboration with the county governments. The aim is to develop the investor’s interest who would invest in the private sectors.

5. Role of KenInvest

The role of KenInvest is to develop the Kenyan economy and support the investment promotional activities. As this is one of the highest investment agency which supports the foreign direct investment and direct investment who invest in private sector of Kenya. The KenInvest has played a vital role in increasing the country's investment ratio as compared to the previous decade. Moreover, the comparative analysis showed that country had the significant impact in the private sector because of higher investments. As the plan of 5 years, the agency has the strategic objectives where it has the target to increase the per capita income and increase the GDP of the country by the year of 2030.

Moreover, it has aim to provide the job opportunities to the local people and increase the automation and digitalization in the country. It also works for the reduction in the poverty and make the living standard higher of the local people as compared to the previous era. The target is to improve the investment environment in the country where the adequate strategies’ and policies must be executed,which would attract the investors to take part in the investment opportunities.

However, it has its main focus on supporting the four main sectors: manufacturing, agricultural, healthcare and food sector. The other sectors are also considerate to be improved and given preference for the developmental purpose. The government has also contributed in implementing favorable policies for the investors...........................

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Investment Promotion in Kenya Harvard Case Solution & Analysis