Research and consulting in Kenya
IOA’s in-depth knowledge of Kenya has been acquired over the years through extensive research and the provision of consulting services on the country. While noting that Kenya has a booming ICT sector and is East Africa’s financial hub, IOA economists caution investors not to forget that as the world’s best safari destination, Kenya has a thriving tourism sector. Tourism helps boost Sub-Saharan Africa’s fifth-largest economy, behind Angola, Ethiopia and South Africa.
IOA researchers praise Nairobi as East Africa’s tech capital. Kenya’s open economy and liberal business regulations have mitigated levels of government corruption, allowing imaginative entrepreneurs to reshape the country on multiple fronts. Persistent droughts in recent years have raised hunger levels, and because erratic rainfall is linked to global warming, mitigation policies must be enacted going forwards.
Key opportunities in Kenya:
- Nairobi remains East Africa’s financial hub, drawing investor activity to the country
- Ordinary Kenyans have benefited from the country’s advanced ICT sector by gaining access to financial and other services using ICT devices
- East Africa’s largest economy is also one of Sub-Saharan Africa’s best performing even with oil reserves in the north-west still largely untapped
Key concerns/risks in Kenya:
- Kenya is facing its sixth consecutive failed rainy season, affecting 5.4 million Kenyans and signalling a need to mitigate climate change
- Government corruption and violence from Islamic extremist groups remain perennial challenges
- With a debt to GDP ratio of 69%, Kenya’s economy is classified as High Risk for a debt crisis