Kenya’s Quiet Bet on Manufacturing Still Holds Promise

Despite a modest dip, investor confidence and facilitation reforms signal long-term gains.

At first glance, a decline in proposed manufacturing investments—from KSh 24.5 billion in 2023 to KSh 17.4 billion in 2024—might cause some hand-wringing in Nairobi’s policy corridors. But read between the numbers, and a different story emerges—one of quiet recalibration rather than retreat.

The Kenya Investment Authority (Ken Invest), the nation’s main investment promotion agency, continues to pull the levers of long-term growth. And while the headline figures have cooled from their 2022 high, the underlying structures being laid suggest that Kenya is playing a longer, smarter game.

The Investment Pendulum

Let’s unpack the data first:

Yes, the 2022 peak was exceptional, but it came at a time when global capital was flowing freely, post-pandemic recovery was robust, and optimism was at a high. The 2024 figures, while lower, still reflect a significant uptick from the pre-pandemic period. In fact, investment proposals in 2024 are more than triple the 2020 level—proof that investor interest is not vanishing, but evolving.

Not Just Quantity—Quality

What is shifting is the profile of investments. Ken Invest’s emphasis on strategic sectors—such as agro-processing, pharmaceuticals, and green manufacturing—is drawing in more targeted, high-impact projects. These aren't just splashy numbers; they are sustainable bets aligned with Kenya’s Vision 2030 goals.

Meanwhile, the One Stop Center—KenInvest’s all-in-one facilitation platform—is quietly becoming a regional model. Investors can now register a company, get a tax PIN, secure a work permit, and obtain sector-specific licenses with unprecedented ease. For those setting up in Export Processing Zones (EPZ) and Special Economic Zones (SEZ), KenInvest is acting less like a gatekeeper and more like a concierge.

Aftercare as a Differentiator

A notable shift in KenInvest’s strategy is its increasing focus on aftercare—a previously neglected but vital link in investor retention. New initiatives are being designed to help existing investors navigate regulations, expand operations, and resolve bureaucratic roadblocks. This shift from a transactional model to a relationship-based one is already paying dividends in investor satisfaction.

The Global Context

In a world where geopolitics and supply chain anxieties are redrawing the investment map, Kenya’s appeal as a stable, English-speaking, and strategically located gateway to Africa remains potent. Infrastructure improvements, port expansions, and green energy investments are reinforcing this narrative.

Yes, capital flows are cyclical. But with institutions like Ken Invest refining their playbook and a government keen on industrial transformation, the trajectory remains upward.

Conclusion: A Slower, Smarter Surge

Kenya is no longer chasing volume—it’s curating value. The 2024 numbers, far from a red flag, are a sign of a country focusing its investment lens. And with the groundwork in place, the next wave may not just be bigger—it may be smarter.

In Kenya’s investment game, the returns may not be immediate—but they’re increasingly inevitable