PROMOTING JAPANESE INVESTMENTS
TO KENYA
Presentation at UNIDO TICAD V Side Event: Investment
and Technology Promotion in Africa: Case Studies
Dr. Moses Ikiara, PhD, MBS
Managing Director
Kenya Investment Authority (KenInvest)
June 2, 2013, Yokohama, JapanPRESENTATION STRUCTURE• Japanese Investments in Kenya• Why Kenya is Attracting Japanese Investments• Investment Incentives• Investment Guarantees• Lessons Learned• Useful Contacts

JAPANESE INVESTMENTS IN KENYATRADING• Mitsubishi Corporation (1968)• Marubeni Corporation (1961)• Itochu Corporation (1961)• Sumitomo Corporation (1970)• Mitsui & Co. Europe Plc (2011)• Toyota Tsusho Africa (2002)
Manufacturing• Toyota Kenya (Toyota E A Ltd (1999)• Honda Motors (2011)• Honda Motorcycle Kenya Ltd (2013)• JKUAT Nissin Foods Ltd (2013)

Sales• Toyotsu Auto Mart Kenya Ltd (2010)• Carview Corporation (2013)
Communication• NEC Africa (Pty) Ltd (2011)
Construction• Komatsu Ltd (1980)• Nippon Koei (1984)• Konoike Construction Co. Ltd (1985)• Zenitaka Corporation (1999)• Tone Engineering Corporation (2008)• Toyo Construction Co. Ltd (2011)• Nippon Corporation (2011)• Kitano Construction Corp (2012)

JAPANESE INVESTMENTS IN KENYA
Tourism• H.I.S. Kenya Ltd (2012)• DoDoWorld Kenya Ltd (1982)• White Lion Safaris Ltd (1994)• Mpata Investments Ltd (1990)
Others• Organic Solutions Ltd (2005)• Environment Technology Africa Ltd(2011)
New Investments under Consideration• Pharmaceutical, Logistics, Sanitary
Facilities, etc.

Key Investments• Road Construction, Mombasa Port
Expansion
Project,
Olkaria
GeothermalProjects,
Motor
Vehicles/Motorcycles
Assembling,etc.

WHY KENYA IS ATTRACTING JAPANESE INVESTMENTS1.
•••••••A regional powerhouse
Strong fundamentals: high returns to investment inmost sectors
Commercial centre of the East African Community;
A business and financial centre, transport hub and aregional base for investors;
Nairobi is among the 25 African cities identified as
growth frontiers by the 2013 report of the Economist
Intelligence Unit;
Kenya is the 2nd best performer in the MSCI frontier
stock market index for 2013, behind United ArabEmirates;
High rate of economic growth and thus growth inincomes and the size of the middle class.
Supported by promising economic reforms.

WHY KENYA IS ATTRACTING JAPANESE INVESTMENTS
2.
••••••••

A welcoming environment
Government views private sector as engine of growth;
KenInvest to facilitate investors;
Improving regulatory framework;
Improved governance through a modern and a progressive
Constitution (2010) that has devolved governance to 47
Counties; Unprecedented success in 2013 elections.
A fully liberalized economy without exchange and pricecontrols;
The most developed stock market in the Eastern and Central
African region i.e. the Nairobi Securities Exchange;
Enactment of the Public Private Partnership Act 2013 that cameinto effect on 8th February 2013;andHigh human skills and a very innovative environment.

WHY KENYA IS ATTRACTING JAPANESE INVESTMENTS
3. Diversified opportunities• Transformative Vision 2030 with many
investment opportunities• Investment opportunities in all sectors of theeconomy due to its diversified nature;• Recent oil and mineral finds: 2 oil and 2 gas
discoveries; great mining potential (titanium,coal, iron ore, gold, niobium, rare earths);• Package of incentives offered to investors.
• Kenyans love Toyota! And many other JapaneseproductsIncentives• Investment Allowance (100% in major cities and150% in satellite towns)• Capital goods are zero rated• Duty exemption and VAT waiver for machineryand equipment• Export Processing Zones programme (SpecialEconomic Zones)-10 year tax holiday-Withholding tax and stamp duty exemption• Many more promised by the new governmentthat has investment as a key priority

Guarantees…
Kenya Constitution guarantees against expropriation ofprivate property except for purposes of public use or securityNo exchange controls guarantees repatriation of capital,profits and interests.
Member of the Multi-lateral Investment Guarantee Agency(MIGA), an affiliate of World Bank that insures foreign investments
against non-commercial risks.
Member of the International Centre for Settlement ofInvestment Disputes (ICSID) which arbitrates cases between
foreign investors and host governments.
Member of Africa Trade Insurance Agency, which insuresinvestors against political and commercial risks.

LESSONS LEARNED• Innovative ways of investors learning about theinvestment destination matters: Nissin Foods
starting off on research partnership; KenInvest
staffer training in Japan.
• Capacity building helps: understanding each other’s
way of doing business eg UNIDO supported SPX,ITPO Delegate Programs• Inter-Governmental cooperation even during difficulttransitions sends right signals to investors.
• Targeted ODA stimulates investment by helping toestablish an attractive climate.

For More Information:
KENYA INVESTMENT AUTHORITY
P. O. Box 55704-00200, NAIROBI, KENYA
Tel: +254 20 221401-4
Mobile: +254 0722205 424+254 0733601184
Fax: +254 20 243862
Email: info@investmentkenya.com
Website: www.investmentkenya.com