🔴 More Investors Leave Kenya, UK & US Issue Caution
Hello and welcome to the Friday edition of the Evening Brief Newsletter where it is all about foreign exits and warnings.
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Kenya Loses Ksh71 Billion in 2023
A report on Foreign Direct Investments (FDI) has revealed that Kenya experienced notable outflows in 2023.
As highlighted in the 2024 World Investment Report by the United Nations Trade and Development (UNCTAD), Kenya lost investments amounting to Ksh71 billion last year.
The report indicated that investors were still experiencing some challenges in setting up shops in the country owing to challenges in registration among others.
For instance, registration of business in Kenya was revealed to be tedious given that national and county governments had different processes.
On the other hand, outflows have also been attributed to taxation policies that have been adopted by the government.
"Although some applications can be completed online, the lack of integration among systems adds significant barriers for investors and entrepreneurs. There is a pressing need for enhanced facilitation to elevate investment levels sufficiently to address interconnected economic, health, security and climate challenges.
"The Kenya Investment Authority (Keninvest) offers one-stop, in-person services such as assistance with foreign taxpayer registration, electrical grid connection and work permits. However, its services do not extend to crucial permits and licences at the county, sectoral or environmental levels," read the report in part.
Conversely, Uganda is reported to be thriving in FDIs. For instance, in 2023, Uganda was able to attract foreign investments worth Ksh370 billion in comparison to Ksh193 billion of Kenya.
Uganda was also named among the top countries to have attracted foreign investments in the continent alongside Ethiopia.
Additionally, Uganda had minimal outflows that were estimated at Ksh51 million.
These impressive numbers in the Pearl of Africa were attributed to the ease of doing and setting up a business.
"By digitally connecting partner government agencies, an ASYCUDA single window simplifies trade, reduces clearance times and trade costs, ensures transparent and uniform application of duties and taxes, maximizes government revenue, helps combat corruption and ensures compliance with standards for public health and safety," read the report in part.
Guess Who?
Can you guess who said these words?
"If good people don't speak politics, bad people will. Thank you my sons and daughters for taking your space. Going forward, you will not be ignored. They may have their way but you have your country to keep. The political class is the minority and the youth have the majority."
To find the correct answer, simply scroll down as you read this newsletter.
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Foreigners Warned
As the anti-Finance Bill protest gained momentum, the United Kingdom and the United States of America issued safety advisories to their citizens.
In an advisory issued on Friday, June 21, the UK government acknowledged that there were injuries reported among the protesters and the police.
Therefore, UK citizens were advised to exercise caution and avoid areas that were crowded and full of political activities.
On the other hand, the US Embassy guided its citizens to monitor events in the media before deciding on where to go and the activities to undertake.
"Organisers have stated that the events are intended to be peaceful. However, large public gatherings can turn violent at any moment.
"It is recommended to remain vigilant and aware of circumstances and to avoid large gatherings. Traffic disruptions are expected," read the statement in part.
Further, the foreigners were advised to carry proper identification, including their passports with a current Kenyan visa.
The Occupy Parliament protests started on Tuesday, June 18 with youth expressing their dissatisfaction over the taxation policies adopted by the current administration.
The protesters are scheduled to continue on Tuesday, June 25 when the Finance Bill 2024 will be proceeding to the Committee Stage.
At the Committee Stage, MPs are expected to table and vote on various amendments. The Bill will then proceed to the Third Reading.
Weekly Kenyans.co.ke Quiz
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Take our quiz and test how well you understood the week's most important stories.
Here are the top five stories for the day:
Guess Who Answer
The answer is Gathoni Wamuchomba. The lawmaker made the remarks after MPs voted in favour of the Finance Bill 2024 during its second reading.
This newsletter was written by Washington Mito and edited by Brian Muuo.
Derrick Kubasu contributed to the content.
Graphics prepared by Adongo Kyalo and Ronnie Mbugua.
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