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FDI accounts for Kenya’s increase in foreign...

FDI accounts for Kenya’s increase in foreign liabilities

Foreign Direct Investments (FDI) accounted for the largest share of the total foreign liabilities. It increased by 20.7 per cent from sh376,557 million in 2012 to sh454,576 million in 2013, according to the  Foreign Investment Survey (FIS) 2015.

The major recipient sectors of FDI were Wholesale and Retail trade; repair of motor vehicles and motorcycles; Financial and Insurance activities; and Manufacturing which accounted for 24.3, 18.2 and 16.0 per cent of the total FDI inflows respectively, in 2013.

FDI inflows from the Far East region increased by 13.8 per cent to sh76,578 million in 2013 with inflows from India rising by 41.0 per cent to sh 27,783 million making it the leading source in 2013.

In general, stock of foreign liabilities increased by 25.2 per cent from sh634,155 million in 2012 to sh794,026 million in 2013. The stock of FDI, Other Investment and Portfolio Investment accounted for 57.2, 35.3 and 7.4 per cent of the total liabilities in 2013, respectively.

On a positive note, the stock of Portfolio Investment rose by 75.8 per cent to sh58,951 million in 2013. This signals confidence in the country’s investment outlook.

Portfolio Investment inflows also increased by sh38,646 million to sh92,978 million while outflows increased by KSh 34,817 million to sh 67,415 million in 2013. Other Investment stock increased by 25.2 per cent to sh280,498 million in 2013.

Other Investment inflows, which mainly comprised of long term loans accounted for 27.5 per cent of the total inflows, declined by 4.0 per cent to sh99,909 million in 2013.

Foreign Investment Surveys is jointly conducted by the Kenya National Bureau of Statistics (KNBS), Central Bank of Kenya (CBK) and Kenya Investment Authority (KenInvest).


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