Despite the general concern that the country’s business environment is hostile and unfriendly, foreign direct investments and expansions abound, revving up growth in various sectors.

British United Provident Association (BUPA), for instance, has sunk Ksh9.2 billion in Kenya, complementing the country’s insurance sector that is poised to record a boom in the near future. 

The multi-billion-shilling investment comes at a time when the country’s need for affordable and world-class health coverage is more pronounced following the numerous health coverage downtimes associated with the controversial Social Health Authority (SHA).

Potential clients

According to a number of Kenyans, SHA is a testament to one of the worst investments that the Kenya Kwanza government has heavily invested in. 

Entering the Kenyan market, the company seeks to fill the gap with potential clients getting access to any medical service globally, including medications that are not termed as chronic under some health covers in the country. 

Nichola Thompson, BUPA General Manager for the United Kingdom and Africa, stated that the recent push from the government to make healthcare accessible to all aligns with their intent, adding that the need for an improved healthcare service provision for both their Kenyan and African clients was the major drive towards the investment. 

“I think all the economic factors and indicators suggest it’s a high-growth market along with other African territories, and it’s one of our bigger books. We’ve got a massive provision network that our customers as international private medical insurance customers will have access to. I think it’s over 2.2 million provision businesses,” she told the Business Hub.

Prior to this, Kenya’s pioneering car manufacturer, Mobius Motors, was recently acquired by Silver Box, a Middle East-based conglomerate, through a multi-billion-shilling deal. 

This was in a bid to revive and expand the company to regional markets, even as the company anticipates resuming full operations starting July of this year.   

“I am deeply honoured to lead Mobius Motors, a company renowned for its bold and innovative approach in creating a truly unique Kenyan brand,” new COO of Mobius Motors, John Kavila, commented on his appointment by the new management.   The company previously had been struggling with financial flaws with data revealing it had unsettled dues to the Kenya Revenue Authority (KRA) amounting to Sh85.74 million.      

Neosun Energy, a global solar energy solutions company,  also recently entered the Kenyan market with an aim of providing sustainable energy solutions for Commercial and Industrial (C&I) projects by providing tailored solar PV and Energy Storage Solutions.

“Kenya is among the top five fastest-growing economies in Africa. However, businesses in Kenya still face energy supply shortages, especially in remote areas. The mission of Neosun Energy is to provide these companies with affordable and accessible solar energy,” said Ilya Likhov, the CEO of Neosun Energy, during the announcement of their investment.

At the same time, Rise Vest, a Nigerian Fintech, acquired a Kenyan startup, Hisa, expanding its African presence. Hisa allows its users to invest in both local and global assets such as stocks and bonds, signalling the cautious optimism in investing in the Kenyan market. 

Expansion strategies

Local investments have also recently announced expansion strategies, with Mkopa leading the flock. In September last year, the company announced plans to expand its locally assembled phones and electronics after surpassing the five million customer reach mark across the continent. 

Indonesian Cigarette manufacturer  PT Djarum, in August last year signalled plans to expand into the Kenyan market, a move that would shake up British American Tobacco  Kenya (BAT)  dominance. 

A delegation from the company had made an exploratory visit to the market to assess the country’s operating environment and the demand for cigarettes in the country. In 2023, Somalia-based Premier bank announced a 62.5 per cent stake acquisition of First Community Bank (Currently Premier bank Kenya).

The acquisition came at a time when the country was grappling with a shrinking currency and a tough operating environment. 

“The Central Bank of Kenya (CBK) announces the acquisition of 62.5 percent of the shareholding of First Community Bank Limited (FCB) by Premier Bank Limited, Somalia (PBLS) effective March 27, 2023. This follows CBK’s approval on March 13, 2023, under Section 13(4) of the Banking Act,” the Apex bank said in a statement dated March 17, 2023. 

This upward trajectory also comes on the backdrop of businesses’ exodus from the Kenyan market, with the majority of them citing high operating costs and unpredictable tax policies that were affecting the viability of their businesses. 

In February this year, East and Central Africa’s pioneering and largest bus, track and coach body manufacturing company, Labh Singh Harnam Singh limited, saw its operations halt after being placed under receivership for failing to settle its accrued liabilities, a flaw that meant more job losses and reduced income to the government.