Kenya's investments grew in May
10 June 2013, 16:19
Nairobi - Kenya attracted 14 investments projects with a capital outlay of 355.2 million U.S. dollars in May, an increase of 57 percent in the capital outlay over the previous month.
Kenya Investment Authority said on Monday that out of the investments commitment for the month of May, foreign contribution was 91.2 million dollars and local contribution of 264 million dollars.
The proposed investments will create employment to 923 Kenyans and 57 foreigners. "The increase in investments may be attributed to high investor confidence after the success of the recently concluded General Elections," noted a report by the Kenya Investment Authority (KenInvest).
In the previous month of April, investors committed 207 million dollars. Total employment opportunities to both Kenyans and foreigners through the new projects increased by a factor of three from 294 in April to 980 in May.
Manufacturing dominated the number of project proposals received in May, accounting for nine out of the total 14 according to the KenInvest report.
Service sector followed with three projects while construction sector accounted for two projects.
Most project proposals originated from Kenya, accounting for nine project proposals, each coming from France and Tanzania and three being joint ventures between Kenyans and the nationals of the two countries.
Edward Sennoga, an Economist for the African Development Bank (AfDB) tipped Kenya's manufacturing sector as one of the engines for growth that will propel economy to grow at 5.6 percent in 2013.
This compares favorably with the 2012 growth of 4.6 percent. Demand for manufactures goods in Kenya and within the East Africa Community (EAC) Common market will help manufacturing industry grow as people increase their consumer spending, said Sennoga.
Other sectors that will drive growth in 2013 will be agricultural, services particularly transport and communication, and wholesale and retail.
"Economic growth in 2013 would be propelled by the peaceful elections, favorable weather conditions and continued prudent macroeconomic and fiscal management," he said.
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