The Central Bank of Kenya (CBK) is forecasting a significant surge in foreign investment income, projecting the highest figures in the past three years. With an expected influx of around Sh733.9 billion ($4.6 billion), Kenya anticipates a substantial boost in foreign inflows, attributed to positive economic trends.
Recent international borrowings have further bolstered Kenya’s foreign investment prospects, with interest rate reductions in developed economies enhancing its appeal to foreign investors. According to BusinessDaily, Kenya is on track to collect over $4.6 billion in income from foreign investments, marking the highest amount since 2021.
In 2023, the CBK reported a financial account closure at Sh558.4 billion ($3.5 billion), including Sh72.9 billion ($457 million) in foreign direct investment. This year, the bank anticipates even more promising figures, driven by the resumption of foreign investment flows and increased disbursements from multilateral lenders and development partners.
Governor Kamau Thugge emphasised, “We expect a total of $3.5 billion in 2023 and $4.6 billion in 2024, including portfolio inflows, foreign direct investments, as well as disbursements from our development partners and regional institutions.”
Kenya’s recent borrowings from abroad, including significant sums from the International Monetary Fund (IMF) and the Trade and Development Bank, underscore its growing appeal to international investors. Additionally, interest rate reductions in developed economies and Kenya’s strengthened currency position are poised to attract further foreign investment, solidifying its position as an attractive destination for global capital.
