Kenya’s ability to attract investment and support business expansion came under scrutiny at the 11th NCBA Economic Forum, held in Nairobi on 3 November 2026. Discussions focused on regulatory complexity, multiple business charges, access to credit and policy predictability, with speakers arguing that macroeconomic stability must be matched by reforms that lower the cost of investing, producing and trading. 

Held under the theme “Sustaining Economic Resilience While Safeguarding Policy Gains in 2027”, the forum brought together National Treasury Cabinet Secretary John Mbadi, World Bank Division Director Dr. Qimiao Fan, Chairperson of the President’s Council of Economic Advisors Dr. David Ndii, and business representatives. 

Investment Climate and Investor Confidence 

Dr. Fan highlighted Kenya’s relatively low foreign direct investment (FDI), noting that inflows had remained below 0.5 per cent of GDP since around 2018, compared with approximately 1.5 to 2 per cent in comparable lower-middle-income economies. 

The figures highlight the challenge of translating macroeconomic stability into stronger investment inflows. Discussions therefore focused on barriers influencing investor decisions, including compliance costs, regulatory uncertainty and policy predictability. 

Dr. Ndii proposed establishing a dedicated regulatory oversight function to monitor business rules, licences, fees and administrative obligations, and assess how new requirements interact with existing ones. 

The concern was not regulation itself, but overlapping and poorly coordinated requirements across public institutions. These can increase operating costs, delay decisions and undermine investment planning. A central oversight function could improve coordination, make the cumulative regulatory burden more visible and support a predictable business environment. 

The Cost of Doing Business 

Dr. Bimal Kantaria, the Elgon Kenya Managing Director, illustrated the scale of the challenge, citing up to 47 separate charges and five additional levies affecting exporters. He warned that the cumulative burden raises the cost of accessing international markets and weakens the competitiveness of Kenyan products. While these figures relate specifically to exporters, they demonstrate how charges across production, transport and export processes can accumulate. 

Such costs can affect pricing and the ability to secure international orders, particularly for smaller enterprises with limited capacity to manage multiple licences, inspections and payments. Simplifying regulatory processes was therefore presented as important for strengthening business competitiveness and investor confidence. 

Access to affordable financing was another constraint. CS Mbadi urged commercial banks to pass on reductions in the Central Bank Rate (CBR) to borrowers, noting that average lending rates remained approximately 14.4 per cent despite a four-percentage-point policy rate reduction since mid-2024. High borrowing costs constrain working capital, equipment purchases and business expansion, particularly among small and medium-sized enterprises (SMEs). 

The Treasury outlined measures to improve credit access, including transparent, risk-based pricing anchored on the Kenya Shilling Overnight Interbank Average (KESONIA), modernised payment systems and reforms to the Credit Guarantee Scheme to encourage lending to SMEs. 

Investment Opportunities and Infrastructure 

Despite these constraints, the forum highlighted investment opportunities across infrastructure, manufacturing, agriculture and information and communication technology (ICT). Dr. Ndii said an investment pipeline of approximately US$45.7 billion was being tracked across these sectors. 

Initiatives included a proposed National Infrastructure Fund expected to mobilise US$10 billion and a proposed US$24 billion investment in the Lamu Port and oil complex. These could support infrastructure development, exports and regional integration. However, they remain proposed or pipeline investments, highlighting the need to translate ambitions into bankable projects and actual capital commitments. 

Realising these opportunities will depend on predictable policies, efficient regulation, accessible financing and effective institutional coordination. 

What This Means for Kenya’s Economic Competitiveness 

Attracting investment requires more than announcing projects or maintaining macroeconomic stability. Investors also consider regulatory certainty, compliance costs, financing conditions and the efficiency of systems supporting production and trade. 

The proposed regulatory oversight function was raised for consideration, not announced as an adopted government decision. Its potential value lies in addressing fragmented regulatory requirements and making compliance costs more visible. 

Ultimately, Kenya’s competitiveness will depend partly on reducing avoidable business costs without weakening legitimate regulation. Better coordination among public agencies, clearer requirements and more affordable credit could improve the investment environment. Progress will be measured by whether these proposals translate into practical reforms that attract productive investment, strengthen enterprise growth and generate quality jobs.