Why safeguarding investments is key to Kenya's growth

Like many developing countries, Kenya is making deliberate efforts to not only retain existing multinational companies but also attract new international investors. This ambition is being championed through various policy directives from government agencies including the Office of the President, the Ministry of Trade and Industry, and the Ministry of Interior, supported by regulatory bodies such as the Kenya Revenue Authority (KRA), Kenya Bureau of Standards (KEBS), and the Registrar of Companies, among others.

As part of ongoing reforms to improve the ease of doing business, the government, as part of its Bottom-up Economic Transformation Agenda, in partnership with the private sector, development partners, and other stakeholders, continues to review, enact, and repeal outdated or restrictive laws at both national and county levels. The goal is to create a more enabling and conducive environment that allows investors, both foreign and domestic to establish, operate, and expand their businesses in the country without unnecessary bureaucratic hurdles.

In return, multinational corporations and indeed domestic investors, are expected to contribute to national development through local employment, skills transfer, and community empowerment and development initiatives, including corporate social responsibility (CSR) programmes.

According to the Kenya Investment Authority (KenInvest) Chief Executive Officer John Mwenda, Kenya’s improved business climate continues to attract significant investments across diverse sectors. He notes that several multinational companies have already committed billions of shillings in new ventures ranging from agriculture, food processing, and packaging to waste management. Equally a number of domestic investors are setting shop in different parts of the county, especially in the provision of value addition services. 

“The notion that some firms are relocating due to a difficult business environment has not significantly affected investor confidence. On the contrary, many more are setting up multibillion-shilling operations in the country. The government remains committed to reducing the cost of doing business to attract and retain investors,” Mwenda told MyGov in a recent interview.

However, despite this progress, some investors, particularly in the agricultural value chain, are grappling with, initially, unforeseen challenges that threaten their operations. These include rampant crop theft, unresolved land tenure issues, and political incitement targeting, especially large farms. Companies like agro-processer Del Monte in Thika, Kakuzi in Murang'a county and large livestock farmers in Laikipia county have been forced to divert significant resources towards safeguarding their farms, property and other investments, funds that could have been used to support local communities. These criminal acts also deny the investors the opportunity to contribute optimally to the exchequer.

It is in this context that Interior Cabinet Secretary Kipchumba Murkomen’s recent warning to political leaders inciting farm invasions in Kiambu and Murang’a counties and other parts of the country was both timely and necessary. He noted that such incitement, often disguised as a fight against historical land injustices, amounts to lawlessness that endangers lives, livelihoods, and Kenya’s overall investment reputation.

Murkomen decried the growing trend of elected leaders justifying theft of farm produce from multinational farms such as Del Monte and Kakuzi. If unchecked, he warned, this could spiral into a dangerous culture that undermines investor confidence, jeopardizes jobs, and threatens national food security. His statement that “there is no such thing as peaceful theft” should be taken seriously by all leaders and civil society actors.

Multinational agricultural firms are among Kenya’s largest employers and tax contributors. Undermining them not only weakens local economies but also risks pushing investors away to more stable markets. It is therefore crucial for national and county leaders to support the rule of law and help protect legitimate businesses from politically motivated disruptions.

While land remains a sensitive and complex issue in Kenya, the government’s commitment, through the Ministry of Lands, the Directorate of Criminal Investigations (DCI), and the Ethics and Anti-Corruption Commission (EACC), to address land disputes through lawful channels is commendable. Historical injustices must be resolved legally, not through mob action and politically instigated activism.

Kenya’s food security and economic stability depend on sustaining investor confidence in the agricultural sector. As Murkomen aptly put it: “Only go to these companies to work, not to steal. Do not put security agencies in a situation where they will be forced to use excessive force. We will protect lives, property, and investors at all costs.”

This call must be heeded. Crop theft and farm invasions cannot be normalized. Protecting investors, local and international, is not only about safeguarding property; it is about securing livelihoods, jobs, and Kenya’s reputation as a reliable investment destination.