Moderna, Taifa gas boosts FDI in Kenya

Kenya met its foreign direct investment (FDI) target for the last financial year, aided by agreements with Moderna for a vaccine factory and Tanzania’s Taifa Gas for a cooking gas refilling plant. These deals, along with three others, helped unlock over Ksh135.85 billion ($861 million) in FDI for the year ending June 2023, surpassing the government’s set target of Ksh100 billion ($633.9 million).

The agreements with Moderna include plans for a $500 million mRNA vaccine manufacturing plant in Nairobi, which is expected to be the first of its kind in Africa with a proposed annual capacity of 500 million doses. While construction has not yet begun, the completion of this project is anticipated to contribute significantly to the overall FDI when realised.

Additionally, the agreement with Taifa Gas, owned by tycoon Rostam Aziz, involves the establishment of a 30,000-metric tonne liquefied petroleum gas (LPG) handling facility. The groundbreaking event for the LPG plant in Mombasa took place in February 2023, and construction commenced late last month. The total cost of the project is estimated at Ksh16 billion ($101 million).

The government also highlighted the October 2022 deal between Kisumu County and UK investment firm United Green as a major driver of FDI flows. This agreement focuses on supporting climate-smart farming around Lake Victoria.

These investments reflect the government’s efforts to attract foreign capital and stimulate economic growth, contributing to the realisation of FDI targets and fostering development in key sectors, including healthcare, energy, and agriculture.