Friday, August 5, 2011

Setting Ground for Potential Investors

Foreign investors including multinational companies are beginning to grow interest in the East African market. Price water Coopers is one of them planning to put up a regional headquarter in East Africa. Kenya being the economic hub for the region is at a vantage point of absorbing these investors. This notwithstanding, there are quite a number of factors that are likely to repel the investors away and settle for other countries within the region.

The first factor is political instability in the country. Based on what happened in 2007, the violence that erupted after the disputed presidential elections, some investors are still not certain whether 2012, Kenya’s next general election is going to be peaceful or there will be a repeat of 2007.Despite operating in a new constitution that has provisions expected to curb malpractices during elections as happened in 2007, there is still need for political will. Politicians must ensure they adhere to the new law and play their cards right. They must select their words carefully whenever traversing the country campaigning. There’s need to crack down on the illegal militias that at times are used by politicians to cause chaos during elections. This way, we will have a peaceful election and will build faith of the investors to invest in our country.

The other factor is corruption. This has been the order of the day in Kenya. Virtually all sectors are infected by this corruption virus and it seems to mutate every time we try treating it. Kenya has been rated among top nations where graft has thrived. Corruption will scare away investors since they will have the notion that to penetrate into the Kenyan market you have to part with something hence an extra cost of operation, so to avoid this they’d rather go to another country where they won’t incur any unnecessary cost to bribe in order to penetrate the market for instance the issue of how former KPLC director Mr.Gichuru allegedly demanded pay from any company which wanted to do business in Kenya.. As a nation we have to face corruption head on and fight to eliminate it. The anti graft commission has to steer clear of any political interferences in administering its mandate. Kenyans must throw all their weight behind the Commission in waging war against this monster since a collective and joint effort will bear victory.

The energy sector has also got to find alternative means for energy provision. Explore other means such as geothermal power, wind power to supplement hydro power currently in use. The frequent power outages are leading to loss of millions of money. Many businesses can’t operate because they use machines that are run by electricity. Some resort to using generators which guzzle a lot of fuel, a commodity whose cost has of late hit the roof. This is an extra cost of operation for businesses and if not addressed then very many potential investors eyeing our market will shy away.

Poor infrastructure, transport and communication systems are other factors that are likely to prevent these investors from pumping their money into Kenya. We are however on the right footing with the construction of Thika superhighway, one of the busiest highways in East Africa. Once complete, it’s going to ease traffic flow and hence smooth movement of goods and services. The expansion of Jomo Kenyatta Int’l Airport is another plus for us. It will enable the handling of more airlines hence more business for the country. Construction of Lamu port and opening up of a road linking Kenya to Ethiopia will also spur more investments. We however need to improve our communication systems.Fibre cables have been installed and therefore service providers need to ensure there’s access to high speed internet to ease communication and online transactions as well. The issue of people traveling for miles and climbing trees to find signal for cell phones should be a story of the past. Every area in Kenya should have clear network connection.

Above all, God has to come first. Kenyans have to turn to God and put him first in all their dealings. All said and done, soon we will be giving the likes of Malaysia and others a run for their money.