Foreign investment inflows expands labour force by 12,724

 

Labour force  increases

At least 12,742 new jobs were created as a result of increased Foreign Direct Investments (FDIs) in Kenya in the three-year period to 2022.

This is according to the latest Kenya National Bureau of Statistics (KNBS) report on foreign investments that indicates that growing investor confidence in Kenya has seen foreign liabilities increasing by 17.9pc from Ksh 1.75 billion in 2020 to Ksh 2.06 billion in 2022.

The 2023 Foreign Investment Survey Report which published by KNBS in collaboration with the Central Bank of Kenya (CBK) and the Kenya Investment Authority indicates that Kenya is an attractive destination for foreign investors, with a majority attributing it to internet reliability at 29.6pc and transport and infrastructure at 24.4pc.

This has resulted in a 7.5pc increase in total employment by offered by enterprises that benefited from foreign direct investment to 181,956 employees in 2022.

This is reflected in both local and foreign employees accounting for 85pc and 1pc respectively, with female employees comprising 38.2pc of the total workforce.

The total value of exports and imports in goods grew by 50.1pc to Ksh 982 billion in 2022 largely supported in the manufacturing, wholesale and retail trade sectors by enterprises.

Finance and insurance accounted for the largest share of FDIs at 31.5pc, manufacturing at 16.3pc, information and communication at 13.6pc and the agriculture sector attracting an investment of 7.1pc, with Europe accounting for the largest share.

On climate change 87.7pc of respondents to the survey expressed their concerns over the hesitation by investors to allocate resources towards climate change adaptation and mitigation initiatives.

The report says some entrepreneurs, have however, raised concerns over the rising cost of electricity, credit, and tax policies, calling for measures to address bureaucratic hurdles in accessing immigration and construction licenses.

By Trevor Ng'endo