Foreign Direct Investment Trends Of Kenya

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DATA ANALYSIS AND INTERPRETATION 4.1 FOREIGN DIRECT INVESTMENT TRENDS IN KENYA. Kenya has recently experienced a surge in foreign direct investment (FDI) following a period of substantial declines in FDI inflows near the turn of the century. Net FDI flows to Kenya have not only been highly volatile but also generally declined in the 1980s and 1990s. Kenya’s total FDI as a percentage of GDP rose from 4.21 percent in 1980 to 7.39 percent in 2000 however this declined to 5.17 percent in 2006 and currently FDI as a percentage of GDP is a 7.52 percent (UNCTAD, 2014). The investment wave of the 1980s dwindled in the 1990s as the institutions that had protected both the economy and the body politic from arbitrary interventions were eroded. The FDI inflows to Kenya since 2008 have considerably improved from $96Million to $514Million in 2013. In recent years, China has emerged as a key source of FDI in Kenya. Figure 1: FDI Inflows in Eastern Africa Key: Y axis- Inward FDI Inflows in USD $ millions X axis- Years Kenya’s net FDI inflows compared to its East African neighbours however is poor. In 2012, Tanzania attracted FDIs worth US$ 1.70 billion. Uganda received US$ 1.72 billion in investment, while Kenya drew in US$ 259 million (UNCTAD 2013). Table 1:FDI INFLOWS IN EAST AFRICA. Years USD $ millions Kenya Uganda Tanzania 2008 96 1 383 729 2009 115 953 842 2010 178 1 813 544 2011 335 1 229 894 2012 259 1 800 1205 2013 514 1 872 1146 (UNCTAD 2014) 4.2 DATA DESCRIPTION In order
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