Investment opportunities in Kenya
Dennis Awori
Past Vice Chairman – Kenya Private Sector Alliance(KEPSA)

Outline•••Kenya at a glance
Why invest in Kenya
Bankable investment opportunities under the Kenya
Vision 2030

Kenya at a glance•The East Africa's biggest economy with a population of 41.3
million (2013 estimates)•2013: Gross Domestic product (GDP) growth at 5.1%
•Agriculture sector is the main contributor to GDP (24%) andemployment followed by manufacturing accounting for 13%of the GDP and tourism accounts for 12% of the GDP.
•A market based/liberalized economy which is fully
integrated in the Global market through multilateral, bilateral
trade agreements and its participation in the World TradeOrganization (WTO)Kenya at a glance…Cont’•Has a vibrant, active and dynamic private sector contributing
over 80% of the GDP.
•The Kenya’s private sector is categorized into two parts: aformal, large business and a massive, informal small businesssector•KEPSA is the national apex body of the private sector inKenya providing a unified voice for the private sector toengage and influence policy formulation and implementation
through the public-private partnership modelWhy invest in Kenya….Cont’•Regulatory Reforms:
Efforts to lower the cost of doing business•Access to Large pool of Highly Educated and Skilled Work Force:Large pool of highly educated, skilled and sought after work force inAfrica, trained from within the country and in institutions in around the world.
•Strategic Location:
Kenya is strategically placed and has well-developed business
infrastructure making it a natural choice for investors hence, a regional hub.
Access to the larger East African Community, regional markets and globalmarkets.

Why invest in Kenya….Cont’•Highly Developed Social and Physical Infrastructure:
High quality social amenities such as restaurants, hospitals andEntertainment spots, wildlife and natural resources.
•Fully Liberalized Economy:Absence of obstacles hampering the free flow of trade and private
investment i.e./e.g. exchange controls and restrictions on remittances ofprofits and dividends.
•Dynamic and Vibrant Private Sector:
Kenya has a substantial private sector, including a significant number offoreign investors.
The government frequently conducts regular policy dialogue with private
sector players through various forums.

Why invest in Kenya….Cont’•Natural resources discovery:
Discovery of oil, natural gas and other mineral resources present
potential for exploration and exploitation of mineral resources.

Bankable Investment opportunities
under Kenya Vision 2030
SECTOR: TRANSPORT AND INFRASTRUCTURE
PROJECT: Nairobi Commuter Rail (Nairobi)
INVESTMENT PLAN/COST:
Private Equity – US $ 68 Million
Private Debt – US $ 70 Million

PROJECT INFO/STATUS:••••

The government has already invested in the rehabilitation of the rails.
The project will provide for expanded, safe, affordable and efficient rail
commuter services in Nairobi with the additional benefit of decongesting thecapital city's roads.
The project has been done in sections with the completion of Syokimau, Imara
Daima and Makadara.
The Embakasi line is yet to be done.

Bankable Investment opportunities under
the Kenya Vision 2030 ...CONT’SECTOR: TRANSPORT AND INFRASTRUCTURE
PROJECT: Railway cities (Nairobi, Kisumu & Mombasa)
INVESTMENT PLAN/COST:- Joint Venture (US$ 2150 Mln)
85% - Private
15% - Kenya Railways CorporationPROJECT INFO/STATUS:•This initiative will include the redevelopment of existing rail stations into minicities which include business parks for light manufacturing, hotels, shoppingarcades, restaurants and parking garages.

•Apart from the Kisumu Railway city, the others have feasibility studies andland is readily available for investor uptake

Bankable Investment opportunities underthe Kenya Vision 2030 ...CONT’SECTOR: TRANSPORT AND INFRASTRUCTURE
PROJECT: Dry Port at Voi
INVESTMENT PLAN/COST:- (US$ 8 Mln)
Private Equity
Private Debt
PROJECT INFO/STATUS:•An inland intermodal terminal directly connected by rail to the sea port andwill operate as a centre for transshipment of sea cargo to inland destinations.
In addition this port.

•The feasibility study is complete and the project is ready for uptake.

Bankable Investment opportunities underthe Kenya Vision 2030 ...CONT’SECTOR: TRANSPORT AND INFRASTRUCTURE
PROJECT: Special Economic Zones (SEZs), Airport City,
Specialized Cargo terminal, Airport hotel, Terminalbuilding area, Duplicate greenfield8 Second Catering,hangars, Embakasi housing. (JKIA)INVESTMENT PLAN/COST: - PPP scheme or Private equity
or private debt
PROJECT INFO/STATUS:••

The project envisages to have various projects available for investors. Based onthe Master plan developed the Institution
The Authority is soon organizing a forum aimed at introducing investors tothe opportunities in the JKIA Investment Zones

Bankable Investment opportunities under
the Kenya Vision 2030 ...CONT’SECTOR: ENERGY
PROJECT: 2 * 70MW Olkaria V (Naivasha) - KENGENINVESTMENT PLAN/COST: - Joint Venture (US $ 504Million )PROJECT INFO/STATUS:•EOI is expected to be advertised in April 2014

Bankable Investment opportunities under
the Kenya Vision 2030 ...CONT’SECTOR: ENERGY
PROJECT: Isiolo 50MW Wind Power by 2016 (Isiolo) KENGENINVESTMENT PLAN/COST: - Joint Venture (US $ 400Million )PROJECT INFO/STATUS:•

This is the first phase to be followed by 100MW installation.

•EOI Is expected to be advertised in April 2014

Bankable Investment opportunities under
the Kenya Vision 2030 ...CONT’SECTOR: ENERGY
PROJECT: 2 * 140MW Olkaria VI & VIII (KenGen)
INVESTMENT PLAN/COST: - Joint Venture
PROJECT INFO/STATUS:•EOI Is expected to be advertised this year date will communicatedBankable Investment opportunities underthe Kenya Vision 2030 ...CONT’SECTOR: ENERGY
PROJECT: Mombasa Petroleum Trading Hub-Single Buoy
Mooring (SBM) (National Oil) - Mombasa
INVESTMENT PLAN/COST: - Joint Venture (US$ - 514Mln)
PROJECT INFO/STATUS:•••

The trading hub will be a modern petroleum terminal comprising two offshore
petroleum jetties with one dedicated to loading/offloading of crude oil andblack fuels, and the other dedicated to refined products.
A modern Greenfield Petroleum tank farm with a design capacity of
800,000MT is to be developed in phases from an initial minimum capacity of300,000MT.
EOI Is expected to be advertised this year date will communicatedBankable Investment opportunities underthe Kenya Vision 2030 ...CONT’SECTOR: ENERGY
PROJECT: Magwagwa multipurpose dam development project (Lake Basin
Development Authority {LBDA}) – Nyanza
INVESTMENT PLAN/COST: - A build-Operate-Transfer model under a PPP
agreement where the private partner finances, constructs maintains andtransfers the facility to LBDA at the end of an agreed period of time (US$ 978Mln)
PROJECT INFO/STATUS:•••

Comprises the construction of a 95m high and 450m long concrete faced rock fill damwith a design total plant output of 120 MW and an annual energy production of 510
GWh/y.
It also comprises a reservoir with a maximum capacity of 106 m3. The reservoir is
expected to supply water to 19 service centers starting with Magwagwa town and also
provide water for irrigation and fisheries.
Pres-feasibility study is complete

Bankable Investment opportunities underthe Kenya Vision 2030 ...CONT’SECTOR: ENERGY
PROJECT: Nandi Multipurpose Dam Project (Lake Basin Development Authority {LBDA}) –Kisumu
INVESTMENT PLAN/COST: - A build-Operate-Transfer model under a PPP agreement where
the private partner finances, constructs maintains and transfers the facility to LBDA at
the end of an agreed period of time (US$ - 4Mln)
PROJECT INFO/STATUS:•Involves establishment of a large-Scale Multipurpose Water Réservoir catering for Public / Industrial
Water Supply, Irrigation, River Régulations, Flood Control and Power Production (20MW). Promotionand development of Tourism, Inter - Basin Water Transfers, Fisheries, flood control and Downstream
Ecosystem Conservation are also components of the Project.

•The project comprises of a 58m high earth/rock embankment dam located in the Nandi Forest. Itwould impound water with a live storage capacity of 275 Million m³ and surface area extending tosome 12.5 square kilometers. The project will see the irrigation of 16,000 – 17,000 hectares of landin Miwani and Chemelil areas of Kisumu County.

•Pres-feasibility study is complete

Bankable Investment opportunities underthe Kenya Vision 2030 ...CONT’SECTOR: ENERGY
PROJECT: Webuye multipurpose dam development project (Lake Basin Development
Authority {LBDA}) – Bungoma
INVESTMENT PLAN/COST: - A build-Operate-Transfer model under a PPP agreement where
the private partner finances, constructs maintains and transfers the facility to LBDA at
the end of an agreed period of time (US$ - 60Mln)
PROJECT INFO/STATUS:•Comprises the construction of a 54m-earth embankment dam located at 2.5 km upstreamof Webuye falls. It also comprises a reservoir with a full supply level with a live Storage of200x106 cubic meters.
•The dam is expected to supply a single 30MW power station that will ensure rural
electrification and value addition of products. Water Supply, Rehabilitation and Stockingof dams for Improvement of Inland Fish are also components of the Project farming, andenvironmental conservation;•Pres-feasibility study is complete

Bankable Investment opportunities under
the Kenya Vision 2030 ...CONT’SECTOR: AGRICULTURE
PROJECT: Modern & State of the Art Abattoir (Mandera CountyGovernment) – Mandera Town
INVESTMENT PLAN/COST: - PPP Model (US$ 1.8Mln)
PROJECT INFO/STATUS:•The project comprises the development of a modern state of the art abattoir withcapacity to slaughter over 200 heads of livestock, under Islamic tradition.

•The abattoir will be equipped for product processing/utilization, meat
preservation, processing, butchering and development of meat market. Othercomponents include production of biogas from animal waste and solar energy.
The project requires 5-10 acres of land.

•Pres-feasibility study is complete

Thank you
Kenya Private Sector Alliance (KEPSA)
5th Floor, Shelter Afrique Building, Mamlaka Rd
Nairobi, Kenya.
info@kepsa.or.ke / www.kepsa.or.keTel: +254 20 2730374