Africa Economy: Kenya woos Chinese investors

Kenya on Friday called on visiting Chinese investors to explore big investment opportunities in various key sectors including agro processing, textiles, leather, construction services and materials, energy, mining and IT related sectors that build on its comparative advantages.

Industrialization Cabinet Secretary Adan Mohamed said Kenya has created a favorable and enabling environment to attract investment locally, regionally and globally.

"The country is expanding its power supply from 2,500 to 10,000 megawatts and production of the remaining 7,500MW of clean energy is another investment option you could consider," Mohamed said in a statement issued after the meeting in Nairobi.

He was addressing the visiting Chinese delegation of investors from the Keda Clean Energy Company of China who are in the country seeking attractive opportunities to invest in between 200 million to 2 billion U.S. dollars.

Mohamed told the delegation that Kenya has a well-educated, qualified and skilled youthful labor force and access to vast agricultural resources was great potential destination for investment.

The CS said there were tax incentives for export-based industries which could enjoy specific tax holidays.

He encouraged them to consider setting up infrastructure in one of the special economic zones along the Standard Gauge Railway (SGR) from Mombasa to Nairobi. The government is availing land in these zones for investment, he added.

Mohamed stated that the country also wanted to invest in the textile and leather sectors which are major growth drivers in industrial exports.

He said the labour costs are relatively cheaper compared to manufacturing in Asia, adding that Kenya's preferential access to global markets had created a cost advantage to buyers in pursuit of a diversified sourcing base.

Mohamed told the Chinese delegation Kenya was also seeking duty free access for its products in the Chinese market which would improve trade ties between the countries.

Keda Clean Energy Company chairman and leader of the delegation Bian Cheng told Mohamed that they had already acquired a 60 acre piece of land in Kajiado along the Namanga highway where they would shortly commence the construction of a brick and tile factory.

"We want to set up a manufacturing plant to produce construction equipment for use in the country. The establishment of this plant is a positive move as we will source raw material and labor force from the surrounding community," Bian said.

He added that they had already met the necessary environmental standards requirements for the plant in Kajiado.

The factory would be giving the local community 350 direct jobs, the CS was told and plans were also underway to support some of their local development programs. Endit