Why Do Business In Kenya?
There are many historical and economic reasons why investing in Kenya makes sense:
- Kenya’s Gross Domestic Product (GDP) is projected to grow by 5.6% in 2025.
- The country has a fully liberalized economy (free flow of trade and foreign private investment, as well as an ease in transferring money locally and internationally)
- Kenya has an intelligent techno-savvy workforce (responsible for any tech innovations such as mobile phone banking which have yet to reach UK), with a very high standard of spoken and written English (used for teaching at all levels of education, from preschool upwards)
- Kenya has an emerging and growing middle class.
- Recent commercially viable finds of hydrocarbons, as well as enormous renewable energy potential.
- Kenya is ranked 56 among 190 economies in the ease of doing business, (according to the latest Trading Economics ratings 2019)
- Kenya is ranked 108th in the overall Legatum Prosperity Index rankings. Since 2015, Kenya has climbed up the ranking table 15 places. (The 2023 Legatum Prosperity Index)
- Kenya’s economic freedom score is 54.8, making its economy the 121st freest in the 2025 Index of Economic Freedom.
- Kenya is ranked 21st out of 47 countries in the Sub-Saharan Africa region with a score of 54.8. (2025 Index of Economic Freedom)
- Kenya’s Wealth ranks 108 of 144 countries in the World Economics Global Wealth rankings and 15 in the Africa region.
- Kenya is the largest economy in East Africa with a GDP of USD 131.67 (according to International Monetary Fund 2025).
- Kenya serves as a gateway to the East African market, providing access to over 400 million consumers within the East Africa Community and the larger Common Market for Eastern and Southern Africa (COMESA) market.
- Kenya ranks 96th among the 133 economies featured in the GII 2024. The Global Innovation Index (GII) ranks world economies according to their innovation capabilities.
- Kenya ranks 17th among the 38 lowermiddle-income group economies in the GII 2024.
- Kenya ranks 6th among the 27 economies in Sub-Saharan Africa in the GII 2024.
- Kenya boasts a young and dynamic workforce with a high level of education and proficiency in English, making it conducive to business operations and expansion.
- The country’s location, transport links and relative security make it a natural hub for regional markets
- Kenya has rich natural resources such as minerals, arable land, and renewable energy sources, providing opportunities for investment in agriculture, mining, and renewable energy projects.
- Access to finance. The financial sector in Kenya is well-developed, with a range of banking institutions, venture capital firms, and microfinance institutions providing access to finance for businesses of all sizes.
British Companies in Kenya
The UK remains one of the largest cumulative investor and contributor to Kenya’s economic prosperity. With bilateral trade being evenly balanced, the UK stands as Kenya’s largest trading partner at £1.8bn turnover (2025).
- UK companies form the largest private sector employers.
- UK companies are amongst the top five taxpayers in Kenya.
- UK sends one of the largest numbers of tourists to Kenya.
- UK is the prime destination for further education.
As a result:
- The UK’s market share in Kenya in 2022 was 3.4%.
- The total UK Foreign Direct Investment (FDI) with Kenya was £489 million in 2021 and £852 million in 2020.
- Many FTSE 100 companies have a presence in Kenya.
- Marks & Spencer alone buys products worth £100 Million per year from Kenya. (Sainsbury’s, Waitrose, Tesco, & Asda source products of similarly significant amounts. This translates to thousands of jobs and significant income for Kenyans).
- Total Kenya exports to the UK amounted to £783 million to the end of Q4 of Q3 2023 which is an increase of 9.7% or £69 million in current prices, compared to the four quarters to the end of Q3 2022. (DBT Trade and Investment Factsheet).
- Kenya was the UK’s 79th largest trading partner in the four quarters to the end of Q4 2023 accounting for 0.1% of total UK trade.
- UK companies form about 60% of the oil and gas operators in Kenya.
- UK companies are investing over £100M in geothermal, solar, biogas and wind projects within Kenya.
- Total Kenya imports from the UK amounted to £644 million in the four quarters to the end of Q4 2023 (a decrease of 2.4% or £16 million in current prices, compared to the four quarters to the end of Q4 2022) (DBT Trade and Investment Factsheet).
- The UK-Kenya Economic Partnership Agreement (EPA) ratified in 2021, ensures companies operating in Kenya continue to benefit from the pre-Brexit duty-free access to the UK market and support jobs and economic development in Kenya.
Challenges of Doing Business in Kenya
Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the Kenyan market.
Some of the challenges include:
- Strong competition from the East especially on price
- Security threats. Security concerns, including crime and terrorism pose risks to businesses and their operations in Kenya. Get the latest Travel Update to Kenya here.
- Infrastructure limitations. Despite ongoing investments, Kenya still faces challenges with inadequate infrastructure, particularly in transportation, energy, and telecommunications. Nevertheless, Kenya ranks 18th among African countries with the most developed infrastructure and 1st in East Africa region. (Africa infrastructure development index in 2021, by country)
- Political Uncertainty. Frequent changes in government policies as well as election-related tensions may create uncertainty for businesses operating in Kenya.
- Cost of doing business e.g. tax rates, access to finance, practices of the informal sector
- Bureaucracy
- Counterfeiting
- Corruption
The British Chamber of Commerce Kenya (BCCK) in partnership with the UK Department for Business and Trade (DBT) team in Nairobi, serves as a valuable resource for businesses seeking to navigate the challenges of doing business in Kenya. Here’s how our collaboration can assist and provide further advice and information:
- Expertise and Guidance: The Chamber offers expert guidance on the Kenyan business landscape particularly on issues such as regulatory requirements, market dynamics, and cultural nuances that may impact business operations.
- Networking Opportunities: BCCK organises various networking events, seminars, and workshops that bring together business leaders, government officials, and industry experts for businesses to connect and exchange ideas on overcoming challeges and exploring business opportunities in Kenya.
- Advocacy and Representation: The Chamber in collaboration with Department for Business and Trade (DBT) engages with relevant stakeholders, policymakers, and government agencies to advocate for business-friendly policies and regulatory reforms on behalf of British businesses operating in Kenya.
- Tailored Support: BCCK and UK Department for Business and Trade (DBT) can provide personalized support and advice tailored to the specific needs of an individual company.
Economic Data
Demographic Data:
- Population: 52.43 million as of mid-2024 -(source Kenya National Bureau of Statistics)
- 80% under the age of 35 years
- English is the 2nd national language
Economic Indicators
- Kenya is a member of the East African Community (economic block of 8 countries: The Republic of Kenya, the Democratic Republic of the Congo, the Republic of Burundi, the Federal Republic of Somalia, the Republic of Rwanda, the Republic of South Sudan, the Republic of Uganda, and the United Republic of Tanzania).
- GDP 110.3 billion USD
- GDP Growth rate 5.0% (Source – Kenya National Bureau of Statistics)
- Inflation rate of 6.9% (Source – Kenya National Bureau of Statistics)
- Producer Price Index (PPI) Inflation Rate of -1.79% in the second quarter of 2024 ( Source – Kenya National Bureau of Statistics)
- Diversified economy with services contributing 50% of economic activity.
Credit Rating
- Moody’s: Caa1 (Negative Outlook) Source – Trading Economics
- Fitch: B- (Stable Outlook) Source – Fitch Ratings
- S&P Global Ratings: B- (Stable Outlook) Source – Trading Economics
- FDI: US$412 million in 2023 (Source – World Bank)
Other Information
- China’s Foreign Direct Investment in Kenya was $500 million in 2022.
- Debut Eurobond ($1.5Bn in 2014) – oversubscribed, 26% purchased by UK investors.
- Over 200 UK companies in Kenya with strong competition from the East especially on price
UK Export Data to Kenya
Total UK Exports to Kenya to the end of Q1 of 2025
- Total Value: £818 million
- Change: an increase of 12.4% or £90 million in current prices, compared to the four quarters to the end of Q1 2024
- Total Value of Goods Exported to Kenya: £317 million (38.8%)
Top 5 Goods Exported to Kenya by the end of Q4 of 2023
- Cars – £33.0 million
- Refined oil – £31.4 million
- Road vehicles other than cars (capital) – £24.0 million
- Beverages & tobacco – £23.3 million
- Metal ores & scrap – £20.9 million
- Total Value of Services: £501 million (61.2%)
Source – Trade and Investment Factsheet
Kenya's Export Data to the UK
- Total Value of Kenya’s exports to the UK – £1.1 billion (Ranked 70th out of all UK import partners)
- Change: An increase of 12.7% or £125 million in current prices, compared to the four quarters to the end of Q1 2024
- Total Value of Goods Exported to the UK – £435 million (41.2%)
Top 5 Goods Exported to UK by the end of Q4 of 2023
- Other crude animal & vegetable materials – £161.3 million
Vegetables & fruit – £118.3 million
Coffee, tea, cocoa etc – £106.6 million
Other manufactures (capital) – £22.1 million
Mechanical power generators (intermediate) – £16.3 million
- Services: £620 million (58.8%)
Source – Trade and Investment Factsheet
What We offer
WHAT WE OFFER
Market Insight
- Access to a directory of services provided by BCCK members
- Market or sector overview
- Specific information on work permits, company registration, Kenyan tax etc
Getting Started
- Access to office space and meeting rooms
- Matchmaking opportunities – introductions to agents, suppliers and distributors and potential customers
- Professional business services – introductions to trusted lawyers, accountants, tax advisors and other support services
- Support from DIT Overseas Programme Management Service
Building Market Share
- Advice on the best routes to market
- Support for launches and marketing new products and services
- Access to satellite offices in larger markets
OPPORTUNITIES/MARKET INSIGHT
Transport and Infrastructure
Ports
The government allocated approximately £11million towards the
construction of 3 new airports, the upgrade of 2 airports, and approximately £4.1 million to replace ferries. The government also has an ambitious plan to develop a large port off the Indian Ocean Coast in the Lamu area. The port is expected to serve the northern part of Kenya where oil has recently been discovered, as well as landlocked South Sudan and Ethiopia.
Manufacturing Sector
Finance and Insurance
Low Carbon Energy
Kenya Investment Authority (KenInvest)
Kenya Investment Authority (KenInvest) is a statutory
body established in 2004 and currently operating through an Act of Parliament (Investment Promotion Act No. 6 of 2004) with the main objective of promoting investments in Kenya. It is responsible for facilitating the implementation of new investment projects, providing After Care services for new and existing investments, as well as organizing investment promotion activities both locally and internationally.
Business Registration Service (BRS)
The Business Registration Service is a State Corporation
established to administer policies, laws and other matters relating to the registration of Companies, partnerships and firms, and corporations carrying on business under a business name, bankruptcy, hire-purchase, and security rights (Section 4(1) of BRS Act, 2015). This role is critical in improving the ease of doing business in Kenya and economic growth at large. This huge mandate bestowed on the Service requires that it operates in a strategic and focused manner. This Strategic Plan provides the roadmap for the implementation and coordination of the policies, laws and different players involved in ease of doing business.
The Business Registration Service (BRS), is the sole custodian of a list of all companies and information for entities registered in Kenya and maintains registers, data and records on registrations carried out by the Service in a central database.
BRS has not only adopted the concept of “moving data to people” but also “putting people first”and serving the people in a better, faster and in a more responsive manner.
Kenya Innovation Agency
The market entry support tool serves as a guide for entrepreneurs
It provides an overview of:
- Country-level political and economic realities affecting business and market entry
- Sector-level information that is relevant for market entry and opportunity identification
- Detailed market entry requirements including licensing requirements, costs and timings, relevant regulations
- Overview of key stakeholders per sector, including regulators, funders, industry associations
- Lessons learnt from other entrepreneurs in the market
GET STARTED
Market Entry Introdyctory Service (MEIS)
At the moment, BCCK is not in a position to offer MEIS. These services are offered by the Department for Business and Trade (DBT) team in Nairobi.
Securitu and Travel Advice
The most reliable and up to date advice on all aspects of travel to and security in Kenya is offered by the Foreign Commonwealth and Development Office (FCDO).
Immigration Issues
Setting up a Business in Kenya
The Kenya Investment Authority (KenInvest) provides a guide to setting up a business in Kenya. You can also refer to the BCCK directory of member services to find one of our members who can provide the legal support you need.
Support form UK
Chamber members are entitled to support from UK Export Finance. More details on their products here. You can also speak to International Trade Advisors – via your local Chamber of Commerce. This is a chargeable service that gives you direct access to our trade teams here in Kenya. We aim to ensure that British Business realise export wins by utilizing our local language skills, market knowledge and extensive political and commercial contacts.
In UK:
- UK Export Finance
- Department for Business and Trade
- British Chambers of Commerce – find your local chamber
- Foreign Office travel advice for Kenya
- HM Revenue & Customs
In Kenya:
- Market Entry Support Tool
- Kenya National Innovation Agency (KENIA)
- Regulatory Guide for Doing Business in Kenya
- Scale your Business Regulatory Toolkit
- Doing Business In The Counties
- Business Registration Services
- Kenya Private Sector Alliance (KEPSA)
- Kenya Investment Authority (KenInvest)
- Kenya Department of Immigration
- Kenya Association of Manufacturers
- The Fresh Produce Exporters Association of Kenya
- Kenya National Bureau of Statistics (KNBS)
- Kenya Revenue Authority (KRA)
- Kenya Export Promotion & Branding Agency
- Export Processing Zones Authority (EPZA)
- Kenya Industrial Property Institute (KIPI)
- Insurance Regulatory Authority (IRA)
- Kenya Industrial Research & Development Institute
Regional:
- Eastern Africa Association
- British Chamber of Commerce Uganda
- British Business Group of Tanzania
- East African Community
- Business Fights Poverty
- European Africa Chamber of Commerce
- European Union Business Forum Ethiopia
- Rwanda – Deputy British High Commissioner
- The Eastern African Association is a useful gateway for companies wanting to conduct successful business in East African countries including Kenya, Uganda, Tanzania, Ethiopia, Eritrea, Burundi, Seychelles & Rwanda, although resources are only open to members.