Unlocking Kenya’s Investment Opportunities

On Wednesday, May 10, 2017, Corporate Council on Africa hosted a lunch discussion with senior representatives from Stanbic Bank Kenya: Mr. Anton Marais, Head, Corporate and Investment Banking; Mr. Josephat Waichungo, Head, Corporate and Investment Banking Credit; and Mr. Joe Alaro, Head, Transactional Products and Services. Stanbic Bank Kenya is headquartered in Nairobi, Kenya, with subsidiaries in Kenya and South Sudan and is a part of the Standard Bank Group. The three speakers discussed the economic opportunities in Kenya and the role the Bank can play in unlocking some of these opportunities for potential investors.In 2016, Kenya had a GDP of about $69.5 billion and a real GDP growth rate of 5.8%. The Kenyan government’s “Vision 2030” plan seeks to sustain this growth and make Kenya a globally competitive nation and increase the standard of living for all its nationals by 2030. The national plan is composed of three pillars—economic, social and political—that have corresponding strategic sectors of focus. Stanbic Bank Kenya sees opportunity in four of these sectors: Infrastructure, consumer-agribusiness, consumer-fast moving consumer goods (FMCG) and retail, and technology. Currently, several foreign companies have set up in Kenya to service these sectors, some of which include CCA members like General Electric and Microsoft. However, there are still some untapped opportunities.Infrastructure developments are needed to support recent power, oil and gas deals and to support the housing shortages in urban areas. In the consumer-agribusiness sector, investors are targeting export-oriented horticulture and cash crops production (i.e. sugar). Manufacturing in Kenya is composed of mostly small businesses that produce for local consumption. The Kenyan government is working to decrease imports by stimulating local production and with rising urbanization and increased consumer purchasing power, there are many investment opportunities available in the FMCG and retail sectors, especially through mergers and acquisitions (M&A) and joint venture channels. There are also opportunities in the technology sector since Internet and Communications Technologies cut across almost all sectors.Stanbic Bank Kenya provides banking services in all the strategic sectors. The Bank’s Corporate and Investment Banking unit offers a range of services including helping finance large infrastructure projects and providing advisory services on M&A deals. The Bank also provides support to SME’s through their personal and private banking services.