Kenya Targets More Than Doubling Foreign Investment This Year
FDI flows may climb to $1 billion in the year through June from about $400 million a year earlier, Industrialization Secretary Adan Mohamed said yesterday in an interview in the capital, Nairobi. “We expect private funding for power generation to dramatically increase FDI flows,” he said.
Kenya will target the same amount of investment in the fiscal year starting July 1, according to a presentation e-mailed by Mohamed’s office. Kenya’s FDI flows represented 1 percent of gross domestic product in 2011, compared with 4.6 percent and 5.3 percent in neighboring Tanzania and Uganda respectively, the information shows.
Kenya’s Energy Ministry is in the process of procuring contractors for the development of a 960-megawatt coal-fired electricity plant and a 700-megawatt natural gas-powered facility. The two projects are part of a plan by the government to increase generation fourfold to 7,200 megawatts at an estimated cost of $15 billion by 2017.
The government expects to attract 9.5 billion shillings ($109 million) of investment as it sells mainly agriculture-based companies to private investors, according to the statement.
“We are finalizing the process of getting an investor for Pan African Paper Mills,” Mohamed said. “The process of selling sugar factories is already going on.”
The government estimates Pan African Paper Mills will require an investment of 1 billion shillings.
To contact the reporter on this story: David Malingha Doya in Nairobi at email@example.com