Standard Chartered’s Trade 20 Index reports that Kenya has a very high score for its trade readiness. This is due to improved infrastructure and ease of doing business compared to most African countries.
The government’s “Big Four” development initiative – focusing on boosting manufacturing activities, achieving universal health coverage, improving food security and supporting the construction of affordable housing – is driving Kenya’s trade growth potential.
Kenya has been very successful in attracting external investment for substantial infrastructure development including renewable energy projects. The UNEP this year reported that Kenya ranked third in renewable energy investments in Africa and Middle East.
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Kenya’s ease of doing business has also significantly improved. The country moved up 19 places to rank 61st globally in the Ease of Doing Business Index in 2018. This was mainly attributed to governmental reforms, increased access to electricity, and protection of minority investors.
This is despite Kenya facing development challenges such as poverty, inequality, climate change, and rising debt levels. However, Kenya’s ability to refinance debt obligations has eased investors’ concerns about the country’s debt levels.
Overall, the huge investments in infrastructure projects are raising Kenya’s profile and increasing the trade growth potential.
