Kenya provides attractive conditions for investors and is working in the right direction. Attention should be given to strengthening respect for property rights.
Discrimination between foreign and domestic investors as well as unpredictable policy and regulatory change continue to be the lower-risk areas. The level of risk for both reduced vis-à-vis last year, and they are now on the same plane. Breach of State obligations remains the highest risk area.
Kenya has a good performance on two of the EIRA indicators, and a moderate performance on the remaining indicators. It has once again received a score of 78 on management of decision-making processes and 63 on rule of law. On regulatory environment and investment conditions, the score has increased by 2 points and now stands at 60. The indicator foresight of policy and regulatory change has improved the most, from 53 to 58 points.
On a more detailed level, Kenya’s overall subindicator performance is good. Management and settlement of investor-State disputes remains the highest-scoring sub-indicator with 85 points. On transparency (81), institutional governance (75) and communication of vision and policies (67), the score is the same as last year. Though the score on restrictions on FDI has gone down from 65 to 60, the country’s performance on regulatory effectiveness has improved by 9 points (from 50 to 59) and on robustness of policy goals and commitments by 10 points (from 40 to 50). This year, the lowest-scoring sub-indicator is respect for property rights with a score of 42.