Kenya: Kenya loses out as foreign investors head to Uganda

Kenya is losing its grip in the battle for foreign direct investments (FDI) to Uganda and Tanzania as heightened political tensions and restrictions on foreign ownership in some sectors turn away multinationals. The FDI inflows to Kenya dipped from Sh67.8 billion in 2007 to Sh13.1 billion in 2009 and Sh12.4 billion last year, according to the UN Conference on Trade and Development (UNCTAD). Last year, Uganda’s FDI inflows jumped to Sh78.8 billion from Sh75.9 million while Tanzania’s increased from Sh60 billion to Sh65.1 billion—making the twin countries the key beneficiaries of the region’s common market.