Despite the economic crisis, high public debt and internal management problems by the government, Kenya remains among the most attractive countries for investors and the first on the African continent, tied with Nigeria and South Africa.
A report on ‘private equity’ published by the global research agency Deloitte, places Kenya in a privileged position. According to Deloitte, ‘Kenya's recent policy reforms and regulatory adjustments have made it the preferred destination for investment in Africa’.
In its report, Deloitte revealed that Kenya's recent move to privatise 26 public institutions will help the country build a more dynamic and private sector-led economy, although it remains to be seen how the privatisation process will be managed and optimised by the government.
In any case, according to experts, most investors plan to direct their investments to Kenya in the next 12 months. The only doubt is the economic stability because of the interest on the debt the country has to repay and the waiver of stringent finance. But the country's vast resources, its resilience in private equity, and its ability to identify opportunities on the ground will be key to driving economic recovery and supporting enterprise. Deloitte notes the streamlining of regulatory frameworks and the simplification of transaction processes.
There is great optimism among economists surveyed by Deloitte, two out of three believe in a 2025 recovery, despite caution due to recent protests.
‘This favourable convergence across East Africa offers not only lucrative exit opportunities, but also crucial moments to sculpt the region's economic future,’ noted Kevin Kimotho, of Deloitte East Africa.
Positive sentiments and foreign money inflows are still supporting the local currency, the shilling, thanks also to the slight decline of the dollar in the run-up to the US elections.
It is self-evident that international events, from the Harris-Trump challenge to the resolution or softening of the Israeli-Palestinian and Russian-Ukrainian conflicts, may also play a key role for Kenya and much of sub-Saharan Africa.