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Kenyan companies invest Sg110 billion in regional economies

Local companies going regional invested Sh110 billion ($1.1 billion) in the neighbouring countries, only trailing what developed countries from Western Europe, North America as well as Asia pumped into the region in the course of last year.

According to a new report by Ernst & Young (EY), Kenyan firms invested the money in 55 projects across the region, which had the effect of creating 3,100 jobs.

The report notes a rising trend of intra-African investment that is led by South Africa and Kenya.

"Kenya is a major investor into the neighbouring region," said the Africa Attractiveness report tracking inflows of foreign direct investment (FDI) on the continent.

"The rising influence of intra-African investment is led by South Africa, which is a key investor into the rest of the region, ranking sixth by projects. Kenya follows in seventh spot."

Among the areas that Kenyan companies have invested in is financial services.

The largest investor was the United States which injected Sh780 billion ($7.8 billion) in 109 projects, while China followed with Sh670 billion.

Other top sources of FDI included United Arab Emirates with Sh360 billion, India (Sh200 billion) and United Kingdom (Sh150 billion).

Kenya also stood out among the largest recipients of FDI coming into Africa. According to the report, foreign investors pumped in Sh200 billion ($2 billion) in 64 projects that are estimated to have created 6,000 jobs in the course of 2018.