Kenya Investment Authority Strategic Plan 2023-2027

1.1 Strategy as an Imperative for Organizational Success................................................2

1.2 The Context of Strategic Planning...............................................................................2 1.2.1 United Nations 2030 Agenda for Sustainable Development....................................... 2

1.2.2 African Union Agenda 2063.................................................................................... 6

1.2.3 East Africa Community Vision 2050. ........................................................................ 7

1.2.4 Constitution of Kenya . ............................................................................................ 7

1.2.5 Kenya Vision 2030, Bottom-Up Economic Transformation Agenda (BETA) and Fourth Medium Term Plan..................................................................................................... 8

1.2.6 Sector Policies and Laws........................................................................................ 10

1.3 History of KenInvest. ................................................................................................11

1.4 Methodology of Developing the Strategic Plan.........................................................12 CHAPTER 2 STRATEGIC DIRECTION...............................................................................13

2.1 Mandate. .................................................................................................................14

2.2 Vision Statement......................................................................................................15

2.3 Mission Statement....................................................................................................15

2.4 Strategic Goals.........................................................................................................15

2.5 Core Values. ............................................................................................................16

2.6 Quality Policy Statement. .........................................................................................17 CHAPTER 3 SITUATIONAL AND STAKEHOLDER ANALYSES............................................18

3.1 Situation Analysis.................................................................................................... 19

3.1.1 External Environment............................................................................................. 20

3.1.1.1 Macro Environment................................................................................... 21

3.1.1.2 Micro-Environment.................................................................................... 25

3.1.1.3 Industry Environment................................................................................. 25

3.1.1.4 Market Analysis. ....................................................................................... 26

3.1.2 Summary of Opportunities and Threats. ................................................................. 26

3.1.3 Internal Environment. ............................................................................................ 32

3.1.3.1 Governance and Administrative Structures.................................................. 33

3.1.3.2 Internal Business Processes........................................................................ 33

3.1.3.3 Resources and Capabilities........................................................................ 33

3.1.4 Summary of Strengths and Weaknesses.................................................................. 36

3.1.5 Analysis of Previous Performance . ......................................................................... 38

3.1.5.1 Key Achievements .................................................................................... 38

3.1.5.2 Challenges............................................................................................... 39

3.1.5.3 Lessons Learnt ......................................................................................... 41

3.2 Stakeholder Analysis............................................................................................... 45 CHAPTER 4 STRATEGIC ISSUES, GOALS AND KEY RESULT AREAS �������������������������������� 63

4.1 Strategic Issues. ...................................................................................................... 64

4.2 Strategic Goals........................................................................................................ 64 Strategic Plan: 2023 – 2027 v Spearheading Equitable Investment-Led Transformation

4.3 Key Results Areas (KRA) FY 2023-2027................................................................... 64 CHAPTER 5 STRATEGIC OBJECTIVES AND STRATEGIES................................................. 66

5.1 Strategic Objectives................................................................................................. 67

5.2 Strategic Choices..................................................................................................... 69 CHAPTER 6 IMPLEMENTATION AND COORDINATION FRAMEWORK ��������������������������� 71

6.1 Implementation Plan............................................................................................... 71

6.1.1 Action Plan . ......................................................................................................... 72

6.1.2 Annual Workplan and Budget................................................................................ 91

6.1.3 Performance Contracting ...................................................................................... 91

6.2 Coordination Framework........................................................................................ 91

6.2.1 Institutional Framework . ....................................................................................... 92 6.2.2 Staff Establishment, Skills Set and Competence Development. ................................. 92

6.2.3 Leadership ........................................................................................................... 93

6.2.4 Systems and Procedures . ...................................................................................... 93

6.3 Risk Management Framework................................................................................. 94 CHAPTER 7 RESOURCE REQUIREMENTS AND MOBILIZATION STRATEGIES ����������������� 96

7.1 Financial Requirements........................................................................................... 97

7.2 Resource Mobilization Strategies............................................................................. 97

7.3 Resource Management............................................................................................ 98 CHAPTER 8 MONITORING, EVALUATION AND REPORTING FRAMEWORK ������������������ 99

8.1 Monitoring Framework. ........................................................................................ 100

8.2 Performance Standards......................................................................................... 102

8.3 Evaluation Framework.......................................................................................... 102

8.3.1 Mid Term Evaluation. .......................................................................................... 104

8.3.2 End-Term Evaluation........................................................................................... 104

8.4 Reporting Framework and Feedback Mechanism.................................................. 104 vi Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation FOREWORD At KenInvest, our primary aim is to actively promote and facilitate investments in Kenya. This strategic plan signifies our unwavering dedication to not only attracting investments, but also providing an all-encompassing range of services that cater to the diverse needs of our investors. Our unyielding commitment is to cultivate an environment that fosters the growth, prosperity, and enduring success of our investors. To develop this strategic plan, we have actively engaged with internal stakeholders, such as I am delighted to introduce the KenInvest Strategicour teams across different departments, to Plan for the year 2023-2027, a vital roadmap ensure that our strategies are aligned with that will shape the future of our organization. the objectives of the organization as a whole. This plan comes at a pivotal time, as the world We have also sought input from external goes through significant digital transformation stakeholders, including our valued investors, exacerbated by the current global economic industry experts, and partners, to gain valuable crisis. It is not merely a document, but a dynamic insights and perspectives. compass meticulously designed to guide Through these collaborative efforts, we have KenInvest in its key role of creating a welcoming identified key areas of improvement in our and investor-friendly environment. investor services and have devised strategies to As we navigate the ever-changing economic address them. By incorporating the input and landscape, we understand that the investor’s expertise of our stakeholders, we aim to create journey is of utmost importance. Our priority in a comprehensive and adaptable strategic plan this Strategic Plan is to cater to the needs of our that addresses not only the current needs of valued investors. We aim to provide them with our investors but also anticipates and prepares a seamless and supportive experience, ensuring for future challenges and opportunities. that every step of their investment journey is As we move forward, we are committed to optimized for optimal returns. By adapting to executing this strategic plan with precision the ever-evolving economic landscape, we and dedication. We will regularly monitor are committed to refining and enhancing our our progress, assess outcomes, and make services to meet the unique requirements of our necessary adjustments to ensure that we investor community. remain on track in enhancing investor services Through our commitment to innovation and and clarifying the investor journey. strategic adoption of technology, we aim to revolutionize the investor experience. Our efforts are driven by the objective of simplifying Ms. Sally Njambi Mahihu processes, optimizing efficiency, and providing Chairperson, Kenya Investment transparency. By embracing automation and Authority Board of Directors digitization, we will create a seamless and responsive journey for our investors, meeting their unique needs and surpassing their expectations. Strategic Plan: 2023 – 2027 vii Spearheading Equitable Investment-Led Transformation PREFACE AND ACKNOWLEDGEMENT Investment-Led Transformation”. This plan signifies our dedication to reimagining and reinventing KenInvest, equipping it to effectively address the challenges of today and position the Kenya Investment Authority as a vital component in driving the objectives of the Bottom- Up Economic Transformation Agenda. Through this strategic plan, we aim to champion investment-led transformation and play a pivotal role in achieving the targets outlined in the agenda. By embracing innovation and collaboration, we will transform KenInvest into a powerful force driving equitable growth and opportunities across various sectors. By systematically addressing the identified priority sectors and enabler sectors, we aim to create an enabling environment for sustainable economic growth, job creation, and poverty reduction in Kenya. We acknowledge the importance of collaborative efforts and partnerships in achieving these goals, and we remain dedicated to KenInvest’s Strategic Plan embraces and aligns with engaging with stakeholders while Kenya’s Bottom-Up Economic Transformation Agenda implementing the strategic plan. (BETA). The BETA initiative identifies Agriculture, Micro, The success of this strategic plan Small, And Medium Enterprises (MSMEs), Housing and depends on the collective efforts of Settlement, Healthcare, and the Digital Superhighway all involved. Therefore, we eagerly and Creative Economy as the priority sectors in driving look forward to collaborating with economic transformation and fostering inclusive our stakeholders to drive positive growth in the next five years. Furthermore, the plan change and transform Kenya into recognizes key impact areas and enabler sectors that a prosperous and inclusive nation. are closely intertwined with the objectives of Kenya’s Once again, we extend our heartfelt Medium-Term Plan IV (MTP IV), the penultimate appreciation to all those who have implementation phase of Kenya’s Vision 2030. contributed to this strategic plan. Your We would like to express our sincere gratitude to all unwavering support and commitment the stakeholders, partners, and contributors who have are invaluable as we work towards played a crucial role in shaping this strategic plan. realizing the socio-economic aspirations Your insights, expertise, and constructive feedback of Kenya. have been instrumental in developing a comprehensive and robust roadmap for KenInvest’s future endeavors. Ms. June Chepkemei In light of our commitment to fostering inclusive and Managing Director equitable growth, KenInvest proudly presents its 2023-2027 Strategic Plan, “Spearheading Equitable viii Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation ACRONYMS AND ABBREVIATIONS “AC” Agency Coordination “M&E” Monitoring & Evaluation “AfCFTA” Africa Continental Free Trade “MDAC” Ministries, Departments, Agencies Area and Counties “AIA” Appropriations In Aid “MDAs” Ministries, Department & Agencies “Authority” or Kenya Investment Authority “MIP” Marketing & Investment “KenInvest” Promotion “BDS” Business Development Strategy “MOU” Memorandum Of Understanding “BETA” Bottom-Up Economic “MSME” Micro, Small & Medium Enterprise Transformation Agenda “MTEF” Medium Term Expenditure “BIT” Bilateral Investment Treaty Framework “BRS” Business Registration Service “MTP IV” Fourth Medium Term Plan “CBPR” Communication Branding and PR “NEMA” National Environment “CIU” County Investment Units Management Authority “CSR” Corporate Social Responsibility “NIC” National Investment Council “COVID-19” Coronavirus Disease 2019 “OSOG” One Start One Go “CRS” Coordination and Regulatory “PA” Policy Advocacy Services “PLR” Planning and Research “DAS” Deal Acceleration and Structuring “PPADA” Public Procurement and Asset “DDI” Domestic Direct Investment Disposal Act, 2015 “DI” Direct Investment “PPADR” Public Procurement and Asset “EAC” East African Community Disposal Regulations, 2020 “EPZA” Export Processing Zones Authority “P&R” Planning and Research “ERP” Enterprise Resource Planning “PR” Public Relations “ESR” Environmental Social “PRM” Partnership and Resource Responsibility Mobilization “FA” Finance & Administration “RIA” Re-Investment and Aftercare “FDI” Foreign Direct Investments “SCAC” State Corporations Advisory “GCI” Global Competitive Index Committee “GM” General Manager “SDG” Sustainable Development Goals “GDP” Gross domestic product “SEZ” Special Economic Zone “HRA” HR and Administration “SEZA” Special Economic Zones Authority “HR” Human Resource “SEZAR” Special Economic Zones Authority “ICT” OR Information and Communications of Rwanda “I.T” Technology “SME” Small and Medium Enterprises “IMF” International Monetary Fund “SP” Strategic Plan “IPA” Investment Promotion Agency or “TOTS” Training of Trainers Agencies “UK” United Kingdom “LCA” Legal and Corporate Affairs “USA” or United States of America “JKIA” Jomo Kenyatta International “U.S.” Airport “USD” United States Dollar “KIP” Kenya Investment Policy “WEF” World Economic Forum “KNBS” Kenya National Bureau of “VAT” Value Added Tax Statistics “KRA” Kenya Revenue Authority Strategic Plan: 2023 – 2027 ix Spearheading Equitable Investment-Led Transformation EXECUTIVE SUMMARY The Kenya Investment Authority (KenInvest) is a statutory body established in 2004 and currently operating through an Act of Parliament (Investment Promotion Act No.6 of 2004) with the main mandate of facilitating foreign and local investments in Kenya. The key functions of the Authority are providing investor facilitation services; promotion and marketing; conducting research; and policy advocacy to improve the investment environment. In undertaking the promotion and facilitation of investments, the Authority focuses on all sectors/ value chains of the economy and works closely with other government Ministries, Departments, Agencies, and Counties (MDACs) to execute her mandate. The Kenya Investment Authority is currently developing its 3rd strategic plan for the 2023-2027 growth period. This initiative follows the conclusion of the second strategic plan cycle from 2018 to 2022. The new strategic plan is in harmony with the government’s development agenda, Kenya’s Vision 2030, the 4th Medium Term Plan (MTP IV) 2023-2027, the Bottom-Up Economic Transformation Agenda (BETA), the East Africa Community Vision 2050, the Africa Union Agenda 2063, and the United Nations Sustainable Development Goals (SDGs). As a result, it leverages the successes and hurdles experienced during the execution of the 2nd strategic plan cycle (2018-2022), while also addressing current global challenges among them impacts of the COVID-19 pandemic, climate change, and the Russia-Ukraine conflict. Additionally, it integrates best practices advocated by key development partners such as the United Nations Conference on Trade and Development (UNCTAD), the World Bank, and other Investment Promotion Agencies (IPAs). The BETA model places emphasis on Agriculture, MSMEs, Housing and Settlement, Healthcare, Digital Superhighway, and the Creative Economy. It also outlines multiple supportive economic sectors including manufacturing, tourism, financial services, environment, and climate, among others, to propel the envisioned inclusive and equitable economic growth. KenInvest has identified its priority areas in the 2023- 2027 Strategic Plan under four Key Result Areas (KRAs): 1. KRA 1: Strengthening the legal and regulatory framework for H.E. Dr. William Samoei Ruto, CGH, the President of the investment promotion and Republic of Kenya,delivering a keynote address during the protection 3rd Kenya International Investment Conference (KIICO) in Nairobi, Kenya. x Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation 2. KRA 2: Integrated Investment Facilitation and Aftercare Services 3. KRA 3: Refine and Promote Bankable Investment Opportunities 4. KRA 4: Targeted Investment Promotion and Attraction 5. KRA 5: Research and Policy Advocacy 6. KRA 6: Transformed Investment Promotion Agency Specific objectives and outcomes tied to each KRA were then developed. Key cross-cutting initiatives to ensure achievement of the above objectives and outcomes under each pillar include: 1. Review and strengthen the current 5. Automating and digitizing KenInvest’s Investment Promotion Act of 2004 to operations and linkages with reflect the changes in Kenya’s investment other relevant agencies through landscape and to attract and enhance implementation of the Investment investor journey. Facilitation Framework, that is being 2. Increase the level of contribution of Foreign developed in conjunction with UNDP Direct Investment (FDI) to GDP growth from and the World Bank. This aims to 19% to 24% by facilitating up to KES 1 enhance efficiencies and improve the trillion worth of investments by 2027 investor journey. 3. Establish strategic collaborations with 6. Strengthen KenInvest as an institution government bodies, private sector through capacity-building initiatives, organizations, county governments, ensuring long-term sustainability in development partners, foreign missions, promoting and facilitating investments and local and international institutions to in Kenya. promote investment opportunities in Kenya. 4. Advocate for the review and implementation of the Kenya Investment Policy (KIP) and leverage the National Investment Council (NIC) to enhance KenInvest’s strategic positioning and influence investment decisions. Strategic Plan: 2023 – 2027 xi Spearheading Equitable Investment-Led Transformation Strategic Plan: 2023 – 2027 CHAPTER INTRODUCTION 1 The following chapter provides an overview of the strategic plan of KenInvest, highlighting its core focus and aligning it with the strategic priorities of the current government. Strategic Plan: 2023 – 2027 1 Spearheading Equitable Investment-Led Transformation

1.1 Strategy as an Imperative for Organizational Success KenInvest, in executing its mandate under the Investment Promotion Act of 2004, and primarily tasked with promoting, facilitating investments in Kenya, as well as undertaking research and policy advocacy, is currently in the process of developing its 3rd cycle of it strategic plan covering the 2023-2027 period. The 2023-2027 Strategic Plan of KenInvest will be closely aligned with the Government’s Bottom-up Economic Transformation Agenda (BETA), which outlines the current administration’s key programs, policies, and reforms to be executed in the Fourth Medium-Term Plan (MTP IV) of Kenya’s Vision 2030 cycle. MTP IV places a high priority on implementing economic recovery strategies aimed at repositioning the economy for steady, inclusive, and sustainable growth. BETA identifies the Agriculture, Micro Small & Medium Enterprises (MSMEs), Housing & Settlement, Healthcare, Digital superhighway and Creative economy as the priority sectors to propel economic transformation and foster inclusive growth over the next five years. It also lists key impact areas and enabler sectors that then inform the key priority outcomes and activities to be undertaken by KenInvest in the next strategic planning cycle.

1.2 The Context of Strategic Planning

1.2.1 United Nations 2030 Agenda for Sustainable Development Table 1: United Nations 2030 Agenda for Sustainable Development S/No. SDG Description Strategic Response by KenInvest 1. SGG 8: Decent 1. Facilitate Investments that create job opportunities. Work and Strengthen Investment Promotion: KenInvest will enhance its Economic Growth investment promotion efforts by targeting industries and sectors with high potential for job creation. This will involve conducting thorough research and analysis to identify investment opportunities that align with the country’s priorities for economic growth and employment generation. KenInvest will also collaborate with local and international stakeholders, including industry associations, to promote investment opportunities that have the potential to create decent and sustainable job opportunities. 2. Support SME and MSME Growth: Small and medium-sized enterprises (SMEs) are central to job creation and economic growth. KenInvest will establish dedicated support mechanisms to facilitate the growth and development of SMEs and MSMEs, enabling them to create a larger number of decent and productive jobs. This will involve providing them with access to finance, training and capacity-building programs, and technical assistance, thus enhancing their ability to attract investments and expand their operations. 2 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation 3. Foster Innovation and Technological Advancement: KenInvest will prioritize investments that foster innovation and leverage advancements in technology. This includes attracting investments in technology- intensive industries such as information and communications technology (ICT), advanced manufacturing, renewable energy, and biotechnology. By supporting the growth of industries driven by innovation and technology, KenInvest will not only generate job opportunities but also enhance the productivity and competitiveness of the labor market. 4. Establish Investment Incentives: KenInvest will work with other actors in government to introduce targeted investment incentives to attract investments that have the potential to create job opportunities. By creating a favorable investment climate, KenInvest will work with key government institutions to come up with incentives to incentivize job-intensive sectors, such as manufacturing, agriculture, tourism, and services, to support sustainable employment growth. 5. Promote Public-Private Partnerships (PPPs): KenInvest will actively work with the National Treasury to promote PPP opportunities to address infrastructure gaps and stimulate job creation. By partnering with the private sector, KenInvest will attract investment in sectors such as transportation, energy, healthcare, and education, generating both short-term and long-term employment opportunities. PPPs will not only drive economic growth but also promote knowledge and technology transfer, capacity building, and the development of local supply chains. 6. Encourage Skills Development and Technical Training: To ensure the availability of a skilled workforce that meets industry needs, KenInvest will collaborate with educational institutions, vocational training centers, and industry associations to develop programs that align with the requirements of job-creating sectors. By investing in skills development and promoting technical training, KenInvest will work with partners to equip individuals with the necessary skills for emerging sectors, thus enhancing their employability, productivity, and income. 7. Enhance Access to Finance: KenInvest will work closely with financial institutions to improve access to finance for potential investors and entrepreneurs, particularly those in underprivileged regions or sectors lacking financial resources. This will include developing innovative financing mechanisms, such as venture capital funds, microfinance schemes, and loan guarantee programs, to ensure that finance is accessible to both small-scale entrepreneurs and larger investors seeking to create job opportunities. Strategic Plan: 2023 – 2027 3 Spearheading Equitable Investment-Led Transformation 2. SGD 9: Industry, 1. To encourage innovation and technology adoption, KenInvest will Innovation, and advocate for policies that provide incentives and support for research Infrastructure and development activities in various industries. This can include tax breaks, research grants, and partnerships with research institutions to promote the development and commercialization of new technologies and innovative business solutions. 2. KenInvest will establish platforms for collaboration and networking among stakeholders, such as industry associations, research institutions, and investors. These platforms can facilitate knowledge sharing, encourage partnerships, and enhance access to funding opportunities, ultimately fostering innovation and driving industry growth. 3. KenInvest can work closely with technical and vocational training institutions to ensure that the skilled labor force meets the needs of industries and investors. By identifying skills gaps in the market and collaborating with educational institutions to develop relevant training programs, KenInvest can support the growth of industries and attract further investments. 3. SDG 11: 1. KenInvest will promote investment opportunities in sustainable Sustainable Cities urban development projects to domestic and foreign investors. This and Communities will include highlighting projects related to affordable housing, renewable energy, public transportation, waste management, and other sustainable infrastructure initiatives. 2. KenInvest provides and shall enhance the support services to investors interested in sustainable urban development projects. This will include facilitating the investor's access to information, providing guidance on legal and regulatory processes, and assisting with permits and licenses. 3. KenInvest will strengthen the partnerships with relevant stakeholders such as county governments, industry associations, and civil society organizations to facilitate collaboration and share knowledge and resources. 4. KenInvest will engage in targeted marketing and promotion efforts, including participating in international conferences, trade fairs, and investment forums to attract investors interested in sustainable urban development. 5. KenInvest will promote attainment of SGD 11 by conducting research and analysis to identify emerging trends, opportunities, and gaps in sustainable urban development, which can inform investment promotion strategies and policy recommendations. 6. KenInvest will promote attainment of SGD 11 establishing a dedicated information portal or platform that provides up-to-date data and resources on sustainable urban development projects, relevant regulations, and investment incentives. 4 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation 7. Incorporating sustainability criteria into investment evaluation processes, ensuring that potential investments align with the principles of SDG 11 and contribute to inclusive and sustainable urban development. 4. SDG 13: Climate 1. Promote Renewable Energy Investments: The agency will actively Action promote investments in renewable energy projects such as solar, wind, hydro, and geothermal energy. This can involve showcasing the potential returns on investment in renewable energy and highlighting the environmental and social benefits of transitioning from fossil fuels to clean energy sources. 2. Facilitate Green Technology Investments: KenInvest will encourage investments in green technologies that help reduce greenhouse gas emissions and promote climate adaptation. This can include supporting and promoting initiatives related to energy efficiency, sustainable transportation, waste management, smart buildings, and innovative climate solutions. 3. Work with governments and policymakers to establish a favorable policy and regulatory environment for climate action investments. This could involve advocating for renewable energy targets, carbon pricing mechanisms, and green certifications, as well as promoting regulatory reforms that encourage clean and sustainable investments. 4. Provide training and capacity building programs for investors and entrepreneurs interested in climate action investments. This could include technical assistance, workshops, and networking opportunities to help enhance their understanding of climate risks, opportunities, and mitigation strategies. 5. SDG 17: 1. Develop Collaboration Platforms: Create and facilitate collaboration Partnerships for platforms that bring together various stakeholders, including the Goals governments, private sector companies, non-profit organizations, and civil society, to work collectively towards achieving the SDGs. 2. Promoting South-South and Triangular Cooperation: This will involve the exchange of resources, knowledge, and technology among developing countries. 3. Encouraging Knowledge Sharing and Capacity Building: This will include organizing training programs, workshops, and knowledge- sharing events to promote best practices, provide guidance on implementing sustainable development initiatives, and enhance understanding of the SDGs. Source: United Nations, Transforming Our World: The 2030 Agenda for Sustainable Development Strategic Plan: 2023 – 2027 5 Spearheading Equitable Investment-Led Transformation

1.2.2 African Union Agenda 2063 Table 2: African Union Agenda 2063 S/No. Aspiration Description Strategic Response by KenInvest 1. Aspiration No.1: Prosperous Africa 1. Identifying and showcasing sectors with based on inclusive growth and high growth potential, such as agriculture, sustainable development manufacturing, renewable energy, tourism, and technology. The agency will engage with domestic and international investors, providing them with information, incentives, and support to encourage investment in these priority sectors. 2. KenInvest will play a vital role in facilitating inclusive partnerships and collaborations between various stakeholders to drive sustainable development. This involves bringing together governments, private sector entities, civil society organizations, and local communities to jointly work towards the objectives of Agenda 2063. 2. Aspiration No.7: Africa as a strong, 1. Promote Africa as an attractive destination for united, resilient, and influential foreign direct investment by providing tailored global player and partner information to potential investors, highlighting the various investment opportunities across different sectors in Africa. 2. Foster Regional Integration and Cooperation by promoting cross-border investments and facilitating the creation of regional investment frameworks. This will include working with regional economic communities and other relevant institutions to develop policies and initiatives that promote trade, investment, and connectivity among African nations. 3. Promoting innovation and technology transfer across Africa. This can involve facilitating partnerships between local businesses and foreign companies or institutions for knowledge and technology exchange. 4. Collaborate with relevant stakeholders, such as ministries of foreign affairs and diplomatic missions, to strengthen diplomatic relations with other countries and regions. Source: Africa Union, Agenda 2063, 2015 6 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation

1.2.3 East Africa Community Vision 2050 The East African Community (EAC) is a regional inter-government organization of eight (8) Partner States, comprising Burundi, Kenya, Rwanda, Uganda, Tanzania, Congo, Somalia and South Sudan. Its main goal is to promote economic, social, and political integration in East Africa. In order to effectively pursue this integration agenda, the EAC develops five-year development strategies. To ensure the long-term development of the region and maximize its potential, the EAC is now undertaking the development of a longer-term vision known as EAC Vision 2050. This vision will guide the formulation of future strategies and help the EAC realize its full potential in the coming decades. Table 3: EAC Vision 2050 No. Description Strategic Response by KenInvest 1. Goal No. 2: Increased 1. Facilitate investment in modern agricultural technologies investment and enhanced and practices. This initiative can involve partnering with agricultural productivity local and international agricultural companies to bring for food security and a advanced farming techniques, such as precision farming transformation of the rural and vertical farming, to the region. economy. 2. Promoting increased investment in modern agriculture, KenInvest can contribute to enhanced agricultural productivity, improved food security, and a transformation of the rural economy in line with the EAC’s goals. Source: EAC Vision 2050 – Regional Vision for Socio-Economic Transformation and Development, Tanzania 2016

1.2.4 Constitution of Kenya Table 4: The Constitution of Kenya S/No Article Description Strategic Response by KenInvest 1. Article 10: National values 1. Prioritize transparency and accountability in National and principles of operations. Adopt a proactive approach towards Values and governance. disseminating information about the Authorities Principles of activities, investments, and outcomes to the public. Governance 2. Publishing annual reports, conducting regular stakeholder consultations, and providing easily accessible information on the website. 2. Article 35: Right of access to 1. Establish a comprehensive and user-friendly Access to information. information dissemination system. This will include information creating a dedicated portal or online platform where KenInvest can provide public access to relevant information, including investment opportunities, policies, guidelines, and relevant reports. 2. Organize informative and interactive workshops, conferences, and seminars to educate the public about its activities and provide a platform for sharing insights and feedback. 3. Leveraging digital technology to enable remote access to information, ensuring that it is easily accessible to all, including marginalized communities. Strategic Plan: 2023 – 2027 7 Spearheading Equitable Investment-Led Transformation 3. Article 43: Economic and 1. Prioritize the promotion of inclusive and sustainable Economic and social rights, economic growth that benefits all segments of society. Social Rights such as the right This will involve implementing policies and programs to accessible that aim to reduce income inequality, alleviate poverty, and adequate and enhance social welfare. housing, 2. KenInvest will work towards attracting and supporting sanitation, investments that prioritize job creation, especially in freedom sectors that have the potential to provide employment from hunger, opportunities to vulnerable and marginalized healthcare, and communities. education etc. 3. Actively seeking investments that promote fair wages, decent working conditions, and skill development. 4. Collaborate with relevant government agencies, NGOs, and community organizations to develop and implement initiatives that address social inequalities and barriers to economic opportunities. 4. Article 232: Values and 1. Prioritize transparency, accountability, and integrity in Values and principles all operations and decision-making processes. Principles of that underpin 2. Implementing a robust system for monitoring and Public Service public service reporting on activities, ensuring that information i.e., integrity, regarding projects, investments, and policies is easily transparency, and accessible to the public. accountability. 3. Establishing an open and transparent communication channel, such as a dedicated website or regular updates via social media platforms. 4. Implementing strict due diligence procedures to evaluate the social, economic, and environmental impacts of potential investments. 5. Promoting a culture of integrity within the organization. Source: Kenya’s Constitution, 2010

1.2.5 Kenya Vision 2030, Bottom-Up Economic Transformation Agenda (BETA) and Fourth Medium Term Plan The government’s BETA agenda serves as the foundation for the development of the 2023-2027 Strategic Plan. The BETA model outlines the main areas of focus for the next five years, along with the supporting sub-areas that will drive an inclusive economic transformation in the country. The enabler sub-areas will effectively support and advance progress in each of these focus areas. Kenya Kwanza seeks to achieve sustainable H.E. Dr. William Samoei Ruto, CGH, the President economic growth, enhance governance, of the Republic of Kenya, engaging with traders in a local market in Kenya. 8 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation attract investments, and ultimately improve the well-being of the people by prioritizing these key focus areas and implementing the enablers. Priority Areas to Drive Inclusive Growth Enabler Areas Areas of impact • Bringing down cost of living To help growth in • Eradicating hunger MSME • Creating jobs Economy • Expanding the tax base • Improving foreign exchange priority areas balance Agriculture • Inclusive growth Digital Housing and Enabler sectors & Sub-Sectors Superhighway • Manufacturing settlement • Tourism • Financial Services Creative • Aviation Healthcare Economy • Infrastructure • Environment & Climate change focus • Education • Social Protection Figure 1: BETA Priority Areas The second key component of the 2023- The second key component of the 2023-2027 2027 Strategic plan is Kenya’s MTP IV Strategic plan is Kenya’s MTP IV (2023-2027). (2023-2027). The country’s long-term The country’s long-term development agenda development agenda aims to transform aims to transform Kenya into a modern, globally Kenya into a modern, globally competitive, competitive, and industrialized economy by and industrialized economy by 2030. 2030. To achieve Vision 2030, Kenya relies on To achieve Vision 2030, Kenya relies on increased increased investments, with the goal of investments, with the goal of reaching 30% of reaching 30% of GDP by 2030 compared GDP by 2030 compared to the current 20%. This to the current 20%. This significant boost significant boost in investment levels is expected in investment levels is expected to come to come mainly from the private sector, driven mainly by a rise in Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI). Strategic Plan: 2023 – 2027 9 Spearheading Equitable Investment-Led Transformation • The primary objective was to foster sustainable and inclusive economic growth, generating employment opportunities within a conducive environment MTP I (2008 - 2012) • Focused on implementing constitutional guidelines for devolution while revitalizing the economy through infrastructure modernization, agricultural diversification for food MTP II (2013 security, and boosting job creation in the manufacturing sector. - 2017) • Economic growth aiming to increase the manufacturing and industrial sector’s contribution to GDP TO 10% by 2022. MTP III heavily focused on the investment in the Big Four Agenda, particulary in agricultural development for food security, MTP III (2018 manufacturing, healthcare, and affordable housing. These efforts were expected to - 2022) stimulate private investment, reaching over 20% of GDP by 2022 • The plan aligns with bottom-up economic model and represents the second-to- last phase of implementing the Vision 2030 flagship projects. One of the primary MTP IV (2023 government priorities in MTP IV is to promote economic growth in order to reduce income - 2027) disparities, revitalize all sectors of the economy to generate employment opportunities, and consistently improve the investment climate in Kenya. MTP IV will concentrate on implementing strategic intervations aimed at propelling the Kenyan economy towards a sustainable growth trajectory, guided by the theme of “Accelerating social-economic transformation to foster a more competitive, inclusive, and resilient economy.” Figure 2: Kenya’s Medium-Term Plans KenInvest functions under the Investment Promotion Act No. 6 of 2004, a legislation enacted by the Parliament to support and streamline investment processes. The Act aims to assist investors in securing required permits, offering additional support, incentives, and other associated benefits to promote and facilitate investment activities.

1.2.6. Sector Policies and Laws Other applicable and supportive laws include: 1. The Foreign Investment Protection Act 4. The Special Economic Zones Act, 2015 (FIPA) assists in safeguarding approved is designed to facilitate the establishment and eligible foreign investments, which is of special economic zones, promote and in line with KenInvest’s objective to attract support international and local investors, foreign direct investment (FDI). foster the development of a conducive 2. The Company Act 2015 aims to simplify environment for such investments, as and enhance business operations in Kenya well as other related objectives. by facilitating the establishment and efficient 5. The EPZA Act establishes the Export functioning of entities. Processing Zones (EPZ) and the Export 3. The Kenyan Business Registration Processing Zones Authority, with the Services Act, 2015 constitutes the purpose of promoting and facilitating establishment of the Business Registration investments focused on export-oriented Service (BRS), aimed at efficiently administering laws pertaining to the activities, as well as fostering a favorable incorporation, registration, operation, and environment for such investments and management of companies, partnerships, related objectives. and firms. 10 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation 6. The Nairobi Financial Services Act of 2017 aims to establish a legal framework that enables and boosts the growth of a highly efficient and internationally competitive financial services sector. The Act specifically focuses on nurturing a strong culture of national savings and investments through the establishment of the Nairobi International Financial Centre, the Nairobi International Financial Centre Authority, and other related provisions.

1.3 History of KenInvest Kenya Investment Authority (KenInvest) is a statutory body established under the Investment Promotion Act, No. 6 of 2004 of the Laws of Kenya, with the mandate of promoting and facilitating local and foreign investments in Kenya. KenInvest has evolved as shown below: Investment Advisory Investment General Authority Kenya Investment and Promotion Promotion Centre (GA) (1992) Authority (Kenivest) Centre (1982) (IPC) (1986) (2004) Figure 3: Evolution of KenInvest The Authority plays a crucial role the Russia-Ukraine conflict. 2063, and the United Nations in supporting investments and The plan also incorporates Sustainable Development facilitating investors by offering recommendations from Goals (SDGs). By building services such among them development partners upon the successes and investment promotion, investor including the United challenges faced during facilitation, research, and policy Nations Conference on the implementation of the advocacy. By collaborating with Trade and Development previous strategic plan various government ministries, (UNCTAD), the World cycle (2018-2022), this new departments, agencies, and Bank, and other trusted strategic plan will account for counties, the Authority ensures Investment Promotion ongoing global challenges a comprehensive approach Agencies (IPA’s). such as the lingering to promoting and facilitating KenInvest’s 3rd cycle of effects of the COVID-19 investments across all sectors and strategic planning will pandemic, climate change, value chains of the economy. be executed during the and the Russia-Ukraine KenInvest’s new strategic plan for period from 2023 to 2027. conflict. Additionally, the the period 2023-2027 is in line The plan is designed to plan will integrate best with various government agendas align closely with various practices recommended by and global development goals. It government agendas, development partners like the builds upon the accomplishments including Kenya’s Vision United Nations Conference and lessons learned from the 2030, the fourth Medium on Trade and Development previous strategic plan cycle Term Plan (MTP IV) (UNCTAD), the World (2018-2022) and considers from 2023 to 2027, the Bank, and other Investment current challenges such as the Bottom-Up Economic Promotion Agencies (IPA’s). aftermath of the COVID-19 Transformation Agenda, pandemic, climate change, and Africa Union Agenda Strategic Plan: 2023 – 2027 11 Spearheading Equitable Investment-Led Transformation Evolution of KenInvest Strategic Planning • Action: Development of first Strategic • Action: Development of KenInvest’s • Action: Development Plan (Investment Advisory and 2nd Strategic Plan since the Investment of third Strategic Plan Promotion Centre) Promotion Act,2004 (General Authority -GA) • Key Partner(s): Federation of Kenya • Key Partner(s): International • Key Partner(s): Nil (in- Employees Development Ireland house) • Main Objective: To enable KenInvest • Main Objective: Developed in line with • Main Objective: To turn “carry out its mandate in a very government medium term plan 2017- KenInvest “into a world turbulent business environment” 2022 class IPA” 1995 2001 2003/4 – 2009 – 2018 – 2023 – 2007 2013 2022 2027 • Action: Development of second • Action: Development of KenInvest’s • Action: Development of Strategic Plan (Investment Promotion 1st Strategic Plan since the Investment KenInvest’s 3rd Strategic Plan Centre - IPC) Promotion Act,2004 since the Investment Promotion • Key Partner(s): Project Finance and • Key Partner(s): N/A Act,2004 Data Centre • Main Objective: To a comprehensive • Key Partner(s): NISK Capital, KPMG • Main Objective: To enable KenInvest framework for the achievement of • Main Objective: To spearhead “determine what to do to continue national investment goals in the Vision equitable investment-led satisfying its stakeholders’ needs 2030’s Medium Term Plan (MTP) of economic transformation in line in view of the changing external 2008-2012.” with Kenya Kwanza manifesto environment.” priorities and MTP IV. Figure 4: Evolution of the KenInvest Strategic Plan

1.4 Methodology of Developing the Strategic Plan The development of the strategic plan involved several key steps: 1. Review of the previous strategic plan: (MDAs), private sector representatives, The implementation, achievements, and civil society organizations, and the general challenges faced during the 2018-2022 public. Their insights, perspectives, and strategic plan were thoroughly evaluated feedback were gathered to ensure a holistic to understand what worked well and where and inclusive approach to the strategic improvements could be made. plan. 2. Review of secondary data and 4. Public participation: The strategic plan information sources: Extensive research development process also involved seeking was conducted by reviewing various sources public input and participation through of information such as strategic plans from various means, such as online surveys, other government agencies, Investment meetings, focus group discussions, and Promotion Agencies (IPAs) development public forums. This ensured that the plan blueprints, economic surveys, Acts of represents the interests and aspirations of Parliament, newspaper articles, economic the public, thereby fostering transparency journals, political party manifestos, and and accountability. relevant reports from organizations like the 5. Validation processes: To ensure the World Bank and UNCTAD. accuracy and quality of the strategic 3. Stakeholder consultations and plan, validation mechanisms were put in engagements: Engaging with stakeholders place. This involved seeking independent at all levels was a critical component expert reviews, peer reviews, and internal of the planning process. This included reviews from relevant stakeholders. The consultations with relevant government plan was refined based on their inputs and ministries, departments, and agencies recommendations. By following this comprehensive methodology, the strategic plan was developed to reflect a well- informed and inclusive approach, offering a roadmap for successful implementation in the next five years. 12 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Strategic Plan: 2023 – 2027 CHAPTER STRATEGIC 2 DIRECTION This chapter presents a comprehensive outline of KenInvest, including its mandate, Vision, Mission, Strategic Goals, Core Values, & Quality Policy Statement. KSh.s Strategic Plan: 2023 – 2027 13 Spearheading Equitable Investment-Led Transformation

2.1 Mandate KenInvest’s core mandate is to Promote, Facilitate, and Coordinate Investments in Kenya. Functions of KenInvest KenInvest functions include: 1. Facilitating investor registration: 5. Information and data dissemination: KenInvest assists investors in registering their KenInvest provides and disseminates new investment projects in Kenya through its accurate and up-to-date information One Start-One Go Centre. and data on the investment environment 2. Fast-tracking permit and license in Kenya. This includes investment approvals: The organization expedites procedures, opportunities, sources of the process of obtaining relevant permits, capital, and any changes or updates licenses, and approvals required for regarding investment policies or investing in Kenya, ensuring a streamlined regulations. and efficient process. 6. Policy advocacy: KenInvest is actively 3. Providing aftercare services: KenInvest involved in advocating for favorable offers aftercare services to investors, ensuring investment policies and regulations. that they receive the necessary support and Through its expertise and knowledge, the guidance even after their investment has organization provides recommendations been established. This includes addressing and feedback to the government and any concerns, providing information, other stakeholders to enhance the and facilitating connections with relevant investment environment and attract more stakeholders. investments. 4. Investment promotion activities: The 7. Advisory services: KenInvest provides organization engages in promoting advisory services on matters related to investment opportunities both locally and the investment climate. This includes internationally. This includes marketing analyzing investment regimes and policies, campaigns, participation in trade fairs identifying best practices, and providing and exhibitions, and conducting targeted recommendations for improving the investment promotion activities to attract investment environment in Kenya. potential investors to Kenya. KenInvest fulfils other responsibilities and functions as specified in the Investment Promotion Act, 2004. These additional functions may include monitoring and evaluating the impact of investments, conducting research and analysis on investment trends, and collaborating with other government agencies and stakeholders. KenInvest currently has five (5) departments which include: i) Investment Promotion: This department is responsible for marketing the Country as the preferred investment destination. It provides support in the provision and dissemination of investment opportunities in the Country and conducts Investment promotion activities both locally and internationally in partnership with relevant stakeholders. 14 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation ii) Investor Services: The department, through the One Start-One Go (to be remodeled as One Start-One Go centre), provides facilitation services to investors and also provides post-establishment services to existing investors (Aftercare). iii) Research, Policy Advocacy and Planning: The department conducts research on the investment environment, develops strategy, plans policy advocacy and offers ICT operations. iv) Legal & Corporate Affairs: The department heads corporate governance and communications within KenInvest. v) Finance & Administration: The department is responsible for the management of human & financial resources, as well as in charge of administrative functions.

2.2 Vision Statement To Position Kenya as the Leading Investment Destination

2.3 Mission Statement Our mission is to advocate for a favorable investment environment and actively promote, facilitate, and coordinate investments in Kenya

2.4 Strategic Goals 1. Establish an enabling legal and regulatory framework for investment promotion, facilitation and coordination. 2. Streamline and consolidate investment promotion, facilitation and coordination efforts 3. Profile, package and market investment-grade projects across key sectors of the economy, guided by key value chains under BETA 4. Increase the effectiveness of investment promotion activities 5. Structure and Strengthen Institutional capacity and visibility 6. Leverage on Evidence-based Based Research and Policy Advocacy Strategic Plan: 2023 – 2027 15 Spearheading Equitable Investment-Led Transformation

2.5 Core Values Table 5: KenInvest’s Core Values Core Values Description Investor Focus KenInvest always aims to prioritize the needs of investors and consistently exceed their expectations. The Authority takes great pride in ensuring investor satisfaction throughout their journey with us. Innovation and The Authority embraces an innovative culture and mindset by proactively creativity driving change, fostering collaboration and shared knowledge, and encouraging continuous improvement. KenInvest believes in pushing boundaries and thinking outside the box to spark creativity and drive meaningful progress. Respect and Trust At KenInvest, staff deeply value and prioritize mutual respect and trust among each other. The Authority firmly believes in treating each other with dignity and equality, embracing the diverse cultural and social values that make our team unique. By fostering an environment of respect and trust, a positive and inclusive workplace is created where all voices are heard and valued. Equity and Fairness KenInvest embraces the principles of equity and fairness. The institution prioritizes creating a harmonious and respectful work environment, upholding high ethical standards. KenInvest’s commitment to honesty and fairness extends to all aspects of our operations, including recruitment and career development opportunities. KenInvest also strives for equal representation and gender balance, fostering an inclusive workplace where everyone has an equal chance to thrive. Professionalism KenInvest is committed to upholding the highest standards of professionalism, confidentiality, and excellence in all that we do. The Authority consistently demonstrates integrity, reliability, and a strong work ethic in its interactions with clients, colleagues, and stakeholders. By maintaining a professional demeanor and adhering to industry best practices, KenInvest ensures that its services and relationships are conducted with the utmost professionalism and respect. Integrity At KenInvest, the highest levels of integrity is prioritized in all aspects of its operations. The Authority is committed to conducting business with honesty, fairness, and transparency, ensuring that all its actions align with ethical standards and regulatory requirements. Teamwork The Authority values the power of collaboration and believes that by working together, greater results can be achieved. KenInvest cultivates a diverse and inclusive team environment where everyone's unique perspectives and skills are embraced and leveraged. Patriotism KenInvest embodies a deep sense of dedication and commitment to its duty. The KenInvest team is driven by a strong sense of patriotism and a shared purpose to contribute to the progress and prosperity of Kenya. 16 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation

2.6 Quality Policy Statement KenInvest is committed to continuously Through rigorous monitoring and evaluation providing quality services to all investors processes, we ensure adherence to best and potential investors through investment practices and compliance with relevant laws promotion, investment facilitation and and regulations. Our team of highly skilled aftercare services. At the Kenya Investment professionals is driven to excellence and Authority, we are dedicated to promoting committed to efficiency, transparency, and investment opportunities and facilitating accountability in all our interactions. economic growth. Our commitment to quality We actively seek feedback from our is reflected in our comprehensive approach to stakeholders and incorporate their providing excellent service to our stakeholders, insights into our processes, supporting both domestic and international. our commitment to deliver exceptional We strive to maintain the highest standards service and exceed their expectations. This of quality throughout all our operations, approach enables us to continually enhance including investment facilitation, business our capabilities and provide a seamless and advisory services, and promoting a favorable customer-centric experience. investment climate. We make it our priority to KenInvest, is dedicated to promoting quality foster a culture of continuous improvement investments, fostering economic growth, and innovation, as we believe it is paramount and driving Kenya’s prosperity. to meet the dynamic needs of investors and promote sustainable economic development. Strategic Plan: 2023 – 2027 17 Spearheading Equitable Investment-Led Transformation Strategic Plan: 2023 – 2027 CHAPTER SITUATIONAL AND 3 STAKEHOLDER ANALYSES This chapter outlines situational and stakeholder analyses; and provides a basis for the development of the adopted strategies. The situational and stakeholder analyses in this chapter serve as critical components of our strategic planning process. By conducting comprehensive assessments of our internal and external environments, we gain invaluable insights into the current state of affairs and the key stakeholders that shape our operations. 18 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation

3.1 Situation Analysis The situation analysis looks A series of global shocks such as the COVID-19 pandemic, the into the factors impacting war in Ukraine and resulting food and energy crises, surging KenInvest and the operating inflation, debt tightening, as well as the climate emergency environment. It scrutinizes battered the world economy in 2022. Against this backdrop, the the opportunities and threats world output growth is projected to decelerate from an estimated present in KenInvest’s 3.0% in 2022 to 1.9% in 2023 (UNCTAD), marking one of the external context, as well lowest growth rates in recent decades. According to UNCTAD, as the strengths and global Foreign Direct Investment (FDI) declined by 12% in 2022, weaknesses within its internal to USD1.3 trillion. environment. By undertaking The decline was mainly as a result of lower volumes of financial this analysis, KenInvest aims flows and transactions in developed countries. Real investment to gain a comprehensive trends were more positive, with growth in new investment understanding of the project announcements in most regions and sectors. FDI in forces shaping KenInvest’s developing countries increased marginally, although growth was performance and to identify concentrated in a few large emerging economies. Industry trends areas of potential growth showed increasing project numbers in infrastructure and the and improvement. digital economy. Going forward, the global debate on climate change is significantly looking at the reduction in the use of fossil fuels to investments in clean energy productive capacities. Kenya’s Economic Outlook: The country has made significant political and economic reforms that have contributed to sustained economic growth, social development, and political stability gains over the past decade. According to the World Bank, Kenya’s economy achieved broad-based growth averaging 4.8% per year between 2018-2022. However, internal and external economic shocks continue to affect the economy, including climate change. In 2022, real GDP growth in Kenya slowed to 5.5% from the previous year’s 7.5%. This decline can primarily be attributed to several factors, including widespread drought, heightened commodity prices, and global financial conditions that restricted access to capital.Growth was driven on the supply side by services and on the demand side by household consumption. Inflation rose to 7.6% from 6.1% in 2021, driven by food and energy prices. Inflation was moderated by subsidies and raising the policy rate to 8.25% from 7% in 2021. The fiscal deficit narrowed to 6.3% of GDP from 8.2% in 2021 due to improved revenue collection and adherence to the International Monetary Fund- Strategic Plan: 2023 – 2027 19 Spearheading Equitable Investment-Led Transformation supported fiscal consolation path. Public debt rose to 70% of GDP from 68% in 2021, driven by higher interest payments and exchange rate depreciation. The current account deficit widened to 6.0% of GDP in 2022 from 5.5% in 2021, driven by the lower trade deficit. According to the African Development Bank, GDP is projected to grow 5.6% in 2023 and 6.0% in 2024, driven by services and household consumption, while inflation is projected to rise to 8.6% in 2023 and drop to 5.9% in 2024, driven by food and energy prices. Monetary policy is expected to remain tight. The fiscal deficit is expected to narrow to 6.1% of GDP in 2023 and 5.4% in 2024, in line with the fiscal consolidation path. The current account deficit is projected to narrow to 5.2% of GDP in 2023 and 5.0% in 2024, attributable to a recovery in global demand. The outlook is subject to considerable risks, including the effects of a prolongation of Russia’s invasion of Ukraine on commodity prices, tight global financing, drought, and slow global economic recovery. Possible risk mitigation measures include diversifying exports and market destinations, enhancing domestic resource mobilization, deepening financial sector reforms, and accelerating structural reforms. Climate change issues and policy options Investment Environment Kenya has the potential to scale up private Kenya has a positive investment climate that has climate finance through innovative financing made it attractive to international firms seeking approaches, such as green bonds, debt- to invest in the region and take advantage of the for-nature swaps, blended financing, and growing market under the African Continental Free climate markets. This suggests the potential to Trade Area (AfCFTA). Kenya’s macroeconomic leverage private climate finance with natural fundamentals remain among the strongest in resources. Notable initiatives enhancing Africa, averaging five to six percent gross domestic natural capital include continuing oil product (GDP) growth since 2018- 2022 Under exploration, increasing tree cover from 8.8% the BETA agenda, Kenya aspires to maintain in 2022 to 30% by 2032, transitioning to leadership in the African Market in clean energy 100% clean cooking by 2028, restoring 10.6 development. With more than 90% of its energy million hectares of degraded landscapes by needs on grid electricity coming from renewable 2032, and increasing land under irrigation sources, Kenya has prioritized low carbon resilient from 500,000 acres investments to reduce its already low greenhouse gas emissions a further 32%.

3.1.1 External Environment The Situational Analysis of the External Environment delves into the Opportunities and Threats influencing KenInvest’s operations during the Strategic plan period. This analysis has been categorized into the Macro, Micro, and Industry Environments, allowing for a comprehensive understanding of the factors impacting KenInvest’s performance. 20 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation

3.1.1.1 Macro Environment The Macro Environment examines the external factors that have a direct and indirect impact on KenInvest’s operations, as it endeavors to fulfill its Mandate. This analysis is further segmented into Political, Economic, Social, Technological, Legal, and Ecological factors to provide a comprehensive understanding of the landscape in which KenInvest operates. An overview of the performance of the External Market is as detailed below: Kenya’s GDP Breakdown Kenya’s GDP Breakdown As at December 2022 Agriculture 21.20% Manufacturing Service 61.10% 17.70% Figure 5: Kenya’s GDP (KNBS Economic Survey 2023) Agriculture and manufacturing are key sectors that form integral parts of Kenya’s economy, with agriculture being a priority focus area under the BETA model and manufacturing. Additionally, services play a pivotal role in the country’s economic growth, as a significant portion of non- agricultural and non-manufacturing activities fall under this category. Total Recorded Employment The table below provides information on Kenya’s total recorded employment as of June 30th of each year, excluding small-scale farming and pastoralist activities. Table 6: Employment in Kenya In ‘000 of people 2018 2019 2020 2021 2022 Modern Establishments Wage Employees 2,859.7 2,928.4 2,742.6 2,906.1 3,015.4 Self-employed and unpaid family 152.2 162.7 156.1 163.7 168.1 workers Sub-Total 3,011.9 3,091.1 2,898.7 3,069.8 3,183.5 Informal Sector (Estimated) 14,283.6 15,051.6 14,508.0 15,261.8 15,964.7 Total 17,295.5 18,142.7 17,406.7 18,331.6 19,148.2 Growth in Total Employment 4.9% -4.1% 5.3% 4.5% Source: Kenya National Bureau of Statistics Strategic Plan: 2023 – 2027 21 Spearheading Equitable Investment-Led Transformation Table 7: Economic Performance Annual % Change 2017 2018 2019 2020 2021 2022 2023E Real GDP Growth (Annual % Change) 3.8 5.6 5.1 -0.3 7.5 4.8 5.8 Inflation (Annual % Change) 8.0 4.7 5.2 5.3 6.1 7.6 7.7 Overall Fiscal Balance, Including -7.4 -6.9 -7.4 -8.1 -7.2 -5.8 -4.7 Grants (% of GDP) Source: IMF The resultant analysis using PESTEL is as detailed below: Table 8: PESTEL Overview Political Devolution • The implementation of devolution through the introduction of a two-tier level of government has had significant implications. It has led to a more equitable distribution of wealth and resources, promoting political stability within the country. • The introduction of the national and county governments, as mandated by the 2010 constitution, has transformed political and economic governance. This shift has resulted in strengthened accountability and improved public service delivery at the local levels. • The enhancement of political stability has fostered a positive political climate, promoting efforts towards national unity and cohesion. Membership to • Kenya's membership in regional and international Regional and organizations, including the United Nations, World Trade International Organization, African Union, COMESA, East African Organizations Community, and AfCFTA, plays a significant role in enhancing investor confidence. Additionally, Kenya's adherence to relevant treaties further strengthens its position as an attractive investment destination. Peace & • Kenya recognizes that regional peace, security, and stability Security are crucial elements in achieving its development objectives. Governance • The perception of widespread corruption in the country negatively impacts investor confidence. • It is crucial to promote transparency and accountability in the management of public resources in order to enhance the country's image and governance. Economic Regional • Being a major communications, logistics and financial hub; Economic Hub Indian Ocean port of Mombasa; strategic land borders with Ethiopia, South Sudan, Uganda, Tanzania, and Somalia, augur well for Kenya’s positioning as the hub of investment in the region. Economy • Kenya’s economy is characterized by stability, low inflation, and a diverse range of sectors. Among its peers in the Eastern Africa region, the services sector, particularly banking and finance, is highly developed. 22 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation • It is projected that the economy will experience faster growth of over 5.7% in 2023, driven by various sectors. • Kenya's GDP stands at approximately USD 113.42 billion in 2022, accounting for nearly 35% of the combined GDP of the East African Community (EAC). • The adoption of prudent macroeconomic policies will play a crucial role in protecting Kenya's strong economic performance. Globalization • Kenya is poised to become a global center in trade and investment competitiveness. • Globalization presents both opportunities and threats for Kenya. As part of a global village, Kenya can benefit from global economic opportunities. • In today's era of globalization, Kenya stands to gain from the various economic opportunities that are available on a global scale. Social Progress • Kenya has made significant progress in achieving the towards Sustainable Development Goals (SDGs). This includes achieving successfully reaching targets such as reducing child mortality, SDGs achieving near universal primary school enrollment, and significantly narrowing gender gaps in education. • These accomplishments can be attributed to various interventions and increased investments in health and education sectors. • The implementation of devolved healthcare systems and the provision of free maternal healthcare in all public health facilities are expected to further enhance healthcare outcomes and promote a more equitable healthcare system in the country. Youthful • As of the end of 2017, Kenya's population was estimated at Population 46.5 million, ranking it as the 29th most populous country in the world (according to KNBS). Notably, the proportion of youth (aged 15-24) in the population was 20.3%, exceeding the global average of 15.8% and the African average of 19.2%. • Youth unemployment remains a significant issue in Kenya, with a rate of 17.3% in 2016, much higher than neighboring countries like Uganda and Tanzania, which have rates of only 6%. • To address this challenge, it is essential to focus on tackling poverty, inequality, governance, and bridging the skills gap between the education curriculum and market requirements. These will be crucial goals to ensure that Kenya's young population can fully contribute to the country's development. Strategic Plan: 2023 – 2027 23 Spearheading Equitable Investment-Led Transformation Environmental Environmental • Despite the challenges, Kenya has the potential to benefit conservation from its predominantly young population as they possess the necessary skills and are ready for employment. This demographic advantage could lead to a demographic dividend if properly harnessed. • Kenya aims to make sustainable investments that align with SDG goals and adhere to environmental standards, such as the Clean Development Mechanism. • The country recognizes the potential of the green economy to drive national development and is actively exploring this avenue. • Environmental awareness is strong in both the public and private sectors in Kenya, with the Constitution setting a target of achieving at least 10% national forest cover. Climate • Global warming and adverse climate have negatively affected Change Kenya’s productive sectors, and mitigation and adaptation strategies are in place. However, there is a need to enhance capacity for environmental policy planning. • Kenya has experienced the detrimental effects of global warming and the changing climate, impacting various sectors of its economy. • The country has implemented measures for both mitigation and adaptation. However, there is still a need to strengthen capacity for development and implementation of comprehensive environmental policies. Technological ICT • Kenya has positioned itself as a global leader in mobile money services, exemplified by the success of Safaricom's M-PESA platform, which has achieved remarkable global recognition. • As the regional ICT hub of East Africa, Kenya has established itself as a frontrunner in various areas, including broadband connectivity, ICT infrastructure, value-added services (VAS), mobile money, mobile banking, and FinTech services. • The country boasts a flourishing startup ecosystem that thrives on innovation, creativity, and a strong entrepreneurial culture. • With increasing internet penetration, a growing middle class, and the widespread use of mobile devices, Kenya's e-commerce sector is experiencing significant growth. • Kenya's telecommunications infrastructure is robust, bolstered by multiple fiber optic cables that connect the country to the global network. Furthermore, major cities have implemented free public Wi-Fi hotspots to enhance internet accessibility. • Kenya has demonstrated its commitment to digital trade by signing the Africa Continental Free Trade Agreement (AfCFTA) Protocol on Digital Trade. 24 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Legal Legislative and • The Investment Promotion Act of 2004 serves as the regulatory investment framework for investments in Kenya. policy • Kenya has enacted several other laws that are conducive framework to promoting investments and protecting foreign investors, including the Foreign Investment Protection Act (FIPA), the Company Act of 2015, the Kenyan Business Registration Services Act of 2015, the Special Economic Zones Act of 2015, the EPZA Act 1990, and the Nairobi Financial Services Act of 2017. • These laws, along with other business-friendly legislation, have facilitated a favorable business environment in Kenya. • As part of its commitment to promoting investment, Kenya is a member of the Multilateral Investment Guarantee Agency (MIGA) affiliated with the World Bank, as well as the African Trade Insurance Agency. • Kenya is a member of the International Centre for Settlement of Investment Disputes (ICSID). • Kenya holds a prominent position globally in terms of legal rights, as reflected in the high ranking on the legal rights index (WEF).

3.1.1.2 Micro-Environment KenInvest has encountered challenges in its operations due to the presence of numerous investment players in the country, which has resulted in low visibility regarding registered investment, volumes, and investors. This situation is further compounded by the fact that transactions registered directly with the registry are not recorded by KenInvest. Consequently, KenInvest faces difficulties in providing accurate and timely investment information and data to potential investors regarding the number of new investments and the specific sectors they are directed towards.

3.1.1.3 Industry Environment The Investment Environment has been analyzed below using some of the factors from Porters’ 5 Forces: • Presence of multiple players • Barriers to Entry The investment sector has had The Investment Industry has multiple players over the last few low barriers to entry, which has years, these players have posed resulted in the establishment of unintended competition to KenInvest many independent institutional and and may sometimes relay unreliable individual investment facilitators. As information to investors and potential a result, these competitors directly investors in an attempt to record challenge KenInvest’s position in the investments. market. Strategic Plan: 2023 – 2027 25 Spearheading Equitable Investment-Led Transformation

3.1.1.4 Market Analysis KenInvest attracts a diverse range of investors, including individuals, MSMEs, and large corporations, both locally and internationally. They pride themselves on being sector-agnostic, assisting and promoting investment through their comprehensive support and aftercare services. Looking ahead to their 2023-2027 Strategic Plan, KenInvest aims to concentrate on boosting investments in key sectors such as Agriculture, MSMEs, Housing and Settlement, Digital Superhighway, Creative Economy, Healthcare, and Environment, focusing on sustainability and climate resilience. Below is a summary of the specific opportunities and Threats Identified in KenInvest’s External Environment.

3.1.2 Summary of Opportunities and Threats Table 9: Summary of Opportunities and Threats Environmental Opportunities Threats factor Political 1. Operationalization of the National • Threats arising from duplication of Investment Council (NIC): services and overlap by other MDAs KenInvest can take advantage of • Security concerns both locally and the formation and activation of the internationally pose challenges to National Investment Council. By investment promotion. leveraging the collaboration and support of this council, KenInvest can enhance its capabilities in promoting and facilitating investments across various sectors. (NIC): KenInvest can take advantage of the formation and activation of the National Investment Council. By leveraging the collaboration and support of this council, KenInvest can enhance its capabilities in promoting and facilitating investments across various sectors. 2. KenInvest can capitalize on political goodwill by strengthening its relationships with relevant government agencies and securing necessary resources to further its mandate. Economic Within the framework of Kenya’s Vision While the investment opportunities within Kenya’s 2030 strategies and the Bottom-Up Vision 2030 strategies and the Bottom-Up Economic Transformation Agenda, there Economic Transformation Agenda are promising, are abundant investment opportunities there are also certain threats to consider. These that can drive the nation’s socio-economic threats could potentially impact the success and growth. profitability of investments in Kenya. 26 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation These investment opportunities can be 1. Infrastructure Gaps and Challenges: harnessed by both local and international Although there are significant investors who are seeking viable and infrastructure development plans, profitable ventures in Kenya. the actual implementation and 1. Infrastructure Development: maintenance of infrastructure projects Kenya’s ambitious plans for may face challenges. Insufficient building modern infrastructure funding, delays in project execution, and present significant investment inadequate maintenance could affect opportunities. Investments in the effectiveness and profitability of transportation networks, including investments in sectors such as transport, roads, railways, airports, and energy, and telecommunications. ports, are essential for connecting 2. Access to Financing: Access to reliable different regions and facilitating financing options is essential for trade. Additionally, investment investors. Limited access to capital in energy infrastructure, such as and high lending rates can hamper renewable energy projects and investment plans, particularly for small power generation facilities, can and medium-sized enterprises (SMEs). help meet the country’s growing It is crucial to address this challenge and electricity demands. promote access to affordable financing 2. Manufacturing and to support investment initiatives. Industrialization: The Bottom-Up 3. Security Concerns and Terrorism: Economic Transformation Agenda Security concerns and terrorism emphasizes the need to enhance the continue to be significant economic manufacturing sector to create jobs challenge in Kenya. These issues can and increase value addition. Investors impact the tourism sector, discourage can explore opportunities in sectors like foreign investment, and pose risks textile and garments, agro-processing, to the overall stability of the country. automotive assembly, and technology Adequate security measures must be manufacturing. The government’s in place to mitigate these threats and commitment to providing a ensure the safety of investments. conducive business environment 4. Kenya’s economy is vulnerable to the and creating special economic effects of climate change, such as zones further enhance investment erratic rainfall patterns and droughts. prospects in these industries. These climate-related risks can impact 3. Agriculture and Agribusiness: sectors dependent on agriculture, Agriculture remains a vital sector water resources, and energy. Investors in Kenya’s economy. Investment need to consider the potential impact opportunities exist in commercial of climate change on their investments farming, horticulture, dairy and and incorporate suitable mitigation livestock, aquaculture, and food and adaptation measures. processing. Leveraging modern 5. Investment Grade Projects: There farming techniques, value chain has been an insufficient number of development, and accessing investment grade projects identified regional and international markets and packaged in the past; that are can lead to sustainable growth suitable to investors and points them in and profitability in the sector. the key opportunity areas. Strategic Plan: 2023 – 2027 27 Spearheading Equitable Investment-Led Transformation 4. Tourism and Hospitality: Kenya’s 6. Generic Investment Promotion: The natural beauty, diverse wildlife, investment promotion efforts have and cultural heritage make it a been so far very generic with minimal top tourist destination in Africa. data backing and packaging that will Investments in the tourism and attract investors. hospitality sector, including hotel and resort development, ecotourism ventures, wildlife conservation, and leisure infrastructure, can tap into the growing demand from domestic and international travelers. 5. Technology and Innovation: The government’s focus on building a knowledge-based economy presents opportunities for investments in technology and innovation. Investments in technology hubs, e-commerce platforms, fintech, renewable energy solutions, and digital infrastructure can drive innovation, job creation, and economic diversification. Social 1. Existence of extensive domestic 1. The high cost of doing business presents and international stakeholder a threat in investment promotion and networks. These networks provide facilitation. a platform for collaboration, 2. The expenses associated with starting resource sharing, and knowledge and operating a business can deter exchange, allowing organizations potential investors and hinder the to tap into a wider range of growth of current businesses. expertise and perspectives. 3. The high costs of doing business make 2. Opportunity for businesses to it less attractive for investors and limit build stronger relationships with the potential for economic growth and stakeholders, enhance their social job creation. impact initiatives, and develop 4. The high presence of numerous players innovative solutions to address poses a threat to investment promotion social challenges. and facilitation (Fragmented market). 3. The constitution of Kenya 2010 When there are too many competitors and the devolved government or businesses operating in the same system provide a conducive market, it becomes increasingly environment for socio-economic challenging for new investors to enter development. Devolution allows and establish a foothold for localized decision-making, increased citizen participation, and the allocation of resources to prioritize local needs 28 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Technological 1. The digitization of government While the digitization of government services in Kenya, particularly services in Kenya presents great through the eCitizen platform, opportunities to attract investment, presents significant opportunities there are several threats that need to be to attract investment. By leveraging considered. These threats can potentially these digital advancements, Kenya hinder the effectiveness and attractiveness can showcase its commitment to of the digital transformation: being business-friendly, efficient, Infrastructure limitations: The success and innovative, making it an of digital government services relies appealing destination for local heavily on robust infrastructure, such and foreign investors. as reliable internet connectivity and 2. This digital transformation stable power supply. In some regions of reduces bureaucratic red tape and Kenya, particularly rural areas, the lack corruption, significantly improving of adequate infrastructure may limit the transparency and ease of doing accessibility and effectiveness of these business Investors can now services. navigate government procedures Cybersecurity risks: As digital systems more smoothly, reducing delays become more prevalent, the risk of and inefficiencies that may have cyberattacks and data breaches increases. been barriers to investment in the Failure to adequately address cybersecurity past. risks can undermine investor confidence 3. The increased accessibility and and deter potential investments. convenience that comes with Digital divide: While digitization offers digital government services advantages, it can also create a digital will attract investors who value divide where certain segments of the efficient processes. The eCitizen population or businesses may not have platform provides a centralized the necessary digital skills or resources to portal for various government access and use digital government services services, eliminating the need for effectively. This can lead to exclusion and investors to physically visit different inequality. agencies, saving them time and Regulatory challenges: The digitization resources. of government services may require the 4. The digitization of government implementation of new regulations and services can create opportunities policies to ensure data privacy, consumer for investment in technology and protection, and fair competition. The infrastructure. As these services introduction of such regulations should continue to evolve and expand, strike a balance between providing a there will be a growing need to secure digital environment and not overly build and maintain the necessary burdening businesses and investors with digital infrastructure, such as unnecessary red tape. data centers, telecommunications Change management: The successful networks, and cybersecurity implementation of digital government services requires effective change systems. This presents significant management strategies. There may be investment potential for technology resistance and challenges as stakeholders companies and infrastructure and users adapt to new processes and developers. technologies. Strategic Plan: 2023 – 2027 29 Spearheading Equitable Investment-Led Transformation Legal The presence of clear, well-defined While clear and stipulated laws governing laws and regulations governing the the investment industry in Kenya create investment industry in Kenya creates opportunities for attracting investment, several opportunities for attracting there are also some potential threats investment. These opportunities that could pose challenges. These threats include: include: 1. Investor confidence: Clear Weak enforcement: Even with and well-defined laws help instill comprehensive laws in place, the investor confidence by providing effectiveness of these laws depends transparency and predictability on their enforcement. If there is a in the investment process. When lack of enforcement mechanisms or investors feel assured that their rights and interests are protected inconsistencies in applying the laws, it may by the legal framework, they are undermine investor confidence and deter more likely to invest in Kenya. potential investors. 2. Ease of doing business: Clear Corruption: Corruption can undermine the laws and regulations make it effectiveness of clear laws and regulations. easier for investors to navigate the If there is a lack of transparency, and investment landscape in Kenya. bribery or unethical practices are prevalent, When rules and procedures it can discourage investors from entering are transparent and easily the market, as it creates uncertainty and understandable, it reduces barriers increases risks. to entry and streamlines the Inefficient bureaucracy: Complex and process of setting up and running bureaucratic administrative procedures businesses. This can attract both can hinder the ease of doing business, domestic and foreign investors, as it promotes a business-friendly despite clear laws and regulations. If there environment. are delays or inefficiencies in obtaining permits, licenses, or approvals, it can 3. Facilitation of foreign direct investment: Clarity in investment frustrate potential investors and dissuade laws can attract foreign direct them from investing in Kenya. investment (FDI) by providing Lack of capacity: Ensuring that there is a stable and legally protected sufficient capacity within government environment for investment. agencies to administer and enforce Foreign investors are more likely investment laws is crucial. Without to commit financial resources sufficient resources, expertise, and training, when they are confident that their there may be challenges in effectively investments will be safeguarded implementing and monitoring compliance by the legal system. with the laws. 4. Promotion of fair and competitive markets: Clear laws Regulatory stability: The regulatory help establish fair market practices, environment should be stable and preventing unfair competition and predictable, providing consistency in promoting a level playing field policies and regulations over time. for businesses. This encourages Frequent changes or unpredictability in investment by ensuring that regulations can create uncertainty for businesses can operate without investors, making them hesitant to commit undue advantage or disadvantage their resources. caused by ambiguous or unfair regulations. 30 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation 5. Protection of investors’ rights: Inadequate investor protection: While Clear investment laws strengthen clear laws provide a foundation for the protection of investors’ rights, investor protection, the strength of these including property rights and the protections also depends on the legal and ability to repatriate profits. This judicial system. Weaknesses in the legal protection enhances investor system, delays in dispute resolution, or confidence and can attract more lack of access to impartial arbitration can investment to Kenya. discourage investments. 6. Legal recourse: Well-defined Policy Advocacy: In the investment space investment laws provide a particularly, there has been insufficient framework for legal recourse in case of disputes between investors evidence-based research and policy and government entities or other advocacy which can lead to passing of stakeholders. This helps to resolve policies that may not be as appropriate for conflicts and disputes in a fair the current market situation. and transparent manner, giving investors recourse in case their investments are at risk Ecological Increased focus on the promotion While there are opportunities to attract of sustainable investment in Kenya investment in sustainable sectors in Kenya, creates several opportunities to attract there are also potential threats that need investment. These opportunities to be considered. These threats include: include: Infrastructure limitations: Inadequate 1. Renewable energy sector: infrastructure, such as unreliable electricity Kenya has tremendous potential supply, inadequate transportation for renewable energy, particularly networks, and limited access to water and in solar, wind, geothermal, and sanitation facilities, can hinder investment hydroelectric power. The promotion in sustainable sectors. Infrastructure of sustainable investment in the renewable energy sector can development is crucial to support attract foreign companies to invest sustainable projects and attract investors. in the development of clean and Lack of skilled labor: A shortage of skilled reliable energy sources. It can lead labor in certain sectors, such as renewable to the creation of jobs, contribute energy and sustainable agriculture, can to energy security, and reduce present a challenge for investors. It may reliance on fossil fuels. require additional investment in training 2. Green infrastructure projects: In and education initiatives to develop a line with sustainable development qualified local workforce and meet the goals, Kenya aims to invest in demand for skilled labor. green infrastructure projects, such Climate change and natural disasters: as sustainable transportation, Kenya is vulnerable to the impacts of waste management systems, eco- friendly building constructions, climate change, including droughts, floods, and smart cities. These projects and other extreme weather events. These present opportunities for both climate-related risks can affect the viability local and international investors of sustainable investments, especially to contribute to sustainable those in agriculture and tourism sectors. urbanization and environmental Adaptation and resilience measures should conservation efforts. be considered to mitigate these risks. Strategic Plan: 2023 – 2027 31 Spearheading Equitable Investment-Led Transformation 3. Sustainable agriculture and Access to finance: Access to finance can agribusiness: Kenya have a rich be a significant challenge for investors agricultural sector, and there is interested in sustainable projects. Limited potential for further investment in availability of capital, high interest rates, sustainable agriculture practices, and a lack of understanding of sustainable including organic farming, investments among financial institutions agroforestry, and precision can impede investment in these sectors. farming. Sustainable agricultural practices can enhance productivity, reduce resource wastage, and minimize the negative environmental impacts associated with traditional farming methods. 4. Ecotourism: Kenya’s diverse landscape, including national parks, reserves, and marine parks, makes it an attractive destination for ecotourism. Investment in sustainable tourism infrastructure, wildlife conservation, and community-based tourism initiatives can help protect natural resources, preserve biodiversity, and generate economic benefits for local communities. 5. Sustainable manufacturing and industries: Encouraging sustainable practices in manufacturing and industries can lead to reduced resource consumption, improved waste management, and lower carbon emissions. Foreign investors can take advantage of Kenya’s strategic location, abundant resources, and skilled labor to set up sustainable manufacturing facilities and contribute to sustainable industrial development.

3.1.3 Internal Environment The internal environment of KenInvest is characterized by various factors that directly impact its operational environment. This internal environment can be classified into three categories: governance and administrative structure, internal business processes, and resources and capabilities. Understanding and optimizing these internal factors is crucial for KenInvest’s success. By ensuring a robust governance and administrative structure, streamlining internal business processes, and leveraging valuable resources and capabilities, KenInvest can enhance its operational environment and achieve its desired outcomes. 32 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation The governance and administrative structure refer to the organizational system and processes that govern KenInvest’s decision-making, accountability, and overall management. This includes the roles, responsibilities, and relationships of different individuals within the organization, as well as the mechanisms for establishing and overseeing policies and procedures.

3.1.3.1 Governance and Administrative Structures KenInvest has made a conscious effort to establish an organizational structure that supports its mission of attracting investment in Kenya. This includes a carefully selected and independent board of directors to oversee the Authority’s activities. The Organization structure that has been in place is as shown below: Board Managing Director GM, Research GM, Investment GM, Legal & GM, Investor GM, Finance & Policy Advocacy Promotion Corporate Affairs Services Admnistration & Planning Manger, Internal Human Resource & Audit Procurement Manger Finance Manager Admnistration Manager Internal Audit Procurement Human Resource Records Accountant & Admnistration Management Officer Officer Officer Officer Figure 6: Current Organization Structure (KenInvest)

3.1.3.2 Internal Business Processes 3.1.3.3 Resources and Capabilities The internal business processes encompass the The resources and capabilities systems, procedures, and workflows that drive of KenInvest refer to the assets, KenInvest’s day-to-day operations. This involves the competencies, and skills that various steps and activities involved in delivering the organization possesses. This services, managing projects, and fulfilling the includes physical resources such as organization’s mandate. Efficient and effective internal infrastructure and technology, as business processes are essential for enhancing well as human resources such as operational productivity and achieving strategic knowledge, expertise, and talent. objectives. Strong resources and capabilities KenInvest has implemented effective business enable KenInvest to effectively processes to govern its day-to-day operations, execute its mission and remain ensuring efficiency. The establishment of a One Start- competitive in the market. One Go Centre has further streamlined the investor journey. However, full automation of the end-to-end investor journey is still in progress, with continued involvement of KenInvest staff required. Strategic Plan: 2023 – 2027 33 Spearheading Equitable Investment-Led Transformation A. Tangible Resources and Capabilities: Human Resources: Network and Partnerships: Training and Development: KenInvest currently has KenInvest has developed As KenInvest aims to position a skilled workforce of strong relationships and itself as a leading investment 60 employees, who partnerships with key promotion agency, continuous are experienced in stakeholders, such as professional development investment promotion government agencies, and skills enhancement of and facilitation. However, international organizations, our staff members are crucial. this falls short of the and industry associations. To ensure that our team ideal number of 110. These collaborations have remains equipped with the To achieve the strategic resulted in valuable support necessary knowledge and objectives for 2023- and knowledge sharing. competencies, KenInvest will 2027, it is necessary To further strengthen our invest in training programs, to align the staffing network and partnerships, workshops, and certifications. levels and roles with the KenInvest will actively seek to This will help enhance our requirements outlined in expand our collaborations, capabilities in investment this document. forge new strategic alliances, facilitation, negotiation, Technology: KenInvest and leverage on existing marketing, and investor has made significant relationships to attract more relations, among others. investments in investment opportunities technology, including and promote the investment the implementation of climate in Kenya. various IT systems for Research and Data Analytics: In order to make informed efficient and effective decisions and provide accurate information to potential investors, service delivery. To KenInvest recognizes the importance of robust research and data enhance the investor analysis. We will invest in research initiatives, market intelligence journey and promote tools, data collection mechanisms, and data analytics capabilities higher levels of foreign to gather and analyze relevant investment data. This will enable us direct investment (FDI) to identify investment trends, understand investor preferences, and and domestic direct tailor our strategies and services accordingly. investment (DDI), it is Marketing and Branding: KenInvest understands the significance necessary to prioritize of effective marketing and branding in attracting investors and digitization and promoting the country as an attractive investment destination. To automation of key bolster our marketing efforts, we will develop a comprehensive functions. This may marketing strategy that includes targeted campaigns, participation involve additional in international trade shows and investment forums, and investment in ICT leveraging digital marketing channels. Additionally, we will invest infrastructure. in branding initiatives to strengthen the KenInvest brand and increase its recognition and credibility in the global investment community. 34 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation B. Intangible Resources and Constraints: KenInvest’s Reputation: KenInvest has established itself as Digital Marketing and a reputable and well-known Investment Promotion Agency Communication: With the both nationally and globally. This strong reputation has increasing digitization of the been earned through the agency’s notable achievements, investor journey, it is crucial for including timely facilitation of investors through One Start- KenInvest to equip its staff with One Go centre, the development of Kenya’s Investment the technical skills necessary to Policy and Investor Case Management System, as well as effectively utilize digital marketing and communication methods. This the successful implementation of the Business Development includes strategies such as search strategy, resulting in the facilitation of over 100 SMEs. This engine optimization, social media solid reputation serves as a valuable intangible resource for marketing, content creation, and KenInvest, enhancing its credibility and attracting potential data analytics to target and engage investors and partners. with potential investors in a cost- Technical Know-how: KenInvest’s staff possesses a robust effective and efficient manner. set of technical skills and expertise necessary to effectively Data Analytics and Business fulfill their roles. However, in order to adapt to the digitization Intelligence: As KenInvest’s investor of KenInvest’s investor journey in the upcoming 5 years, it journey becomes more digitized, is crucial to continuously enhance these skill sets through the ability to collect, analyze, and targeted training programs by investing in continuous training, utilize data becomes essential. KenInvest should ensure that its staff remains up to date with By investing in technical know- the latest digital advancements and industry trends. This will how related to data analytics and enable them to effectively navigate the evolving investment business intelligence, KenInvest can landscape and meet the changing needs and expectations leverage these insights to identify investment trends, understand of investors. investor behavior, and make data- Investment in technical knowhow will contribute to streamlining driven decisions to optimize their processes, improving efficiency, and maximizing the potential promotion strategies and support of KenInvest’s digitized investor journey. the growth of the investment Data Science and Analysis Skills: As the digitization of ecosystem in Kenya. the investor journey amplifies the importance of data-driven Organization Capacity decision-making, it is essential for KenInvest’s staff to have To effectively deliver on its a strong understanding of data science and analysis. This institutional mandate, it is crucial expertise will enable them to collect, interpret, and extract for KenInvest to address two key valuable insights from data, leading to more informed and areas of organizational capacity - strategic investment promotion strategies. staff and funding. User Experience (UX) Design: In the digital realm, user Staff: While KenInvest’s current staff experience plays a crucial role in attracting and retaining is experienced and skilled, there is a investors. With the increasing emphasis on user-centered need to augment the workforce with design, KenInvest can benefit from staff members skilled additional personnel to meet the in UX design. These individuals can ensure that the digital demands of the planned activities. platforms and tools utilized throughout the investor journey KenInvest will enhance its capacity to effectively execute the 2023- are intuitive, user-friendly, and optimized for an exceptional 2027 strategic plan by adequate user experience. staffing and strategic assigning of roles and responsibilities. Strategic Plan: 2023 – 2027 35 Spearheading Equitable Investment-Led Transformation Additionally, it is important to ensure that the existing staff members are adequately resourced in terms of training, tools, and support. Continuous professional development opportunities and access to the latest industry knowledge and best practices will further enhance the capabilities of the team. Funding: Currently, KenInvest relies solely on the Exchequer for funding its activities. To successfully implement the strategic plan, it is imperative to secure adequate funding from diverse sources. This will not only ensure the smooth execution of planned activities but will also offer financial stability and flexibility for adapting to dynamic market conditions. KenInvest can explore various avenues for diversifying its funding sources, such as donor agencies, local and international investors, and revenue-generating initiatives. It is essential to have a robust financial sustainability strategy in place to secure the required funds and reduce dependence on a single source. By addressing staff resourcing and increasing funding diversification, KenInvest can enhance its organizational capacity and effectively deliver on its mandate, driving economic growth and promoting investment in Kenya.

3.1.4 Summary of Strengths and Weaknesses Table 10: SWOT Analysis Factor Strengths Weaknesses Governance and • KenInvest demonstrates well- • Lack of flexibility: The governance Administrative defined roles and functions within and administrative structures may Structures its governance and administrative be rigid, making it difficult to structures. This clarity allows for adapt to changing circumstances efficient decision-making and the or emerging challenges. This can allocation of responsibilities. It hinder the organization’s ability ensures that everyone understands to respond quickly and effectively their respective roles and contributes to new opportunities or threats. to the overall objectives of the • Limited diversity and inclusivity: organization The governance and • Effective decision-making processes: administrative structures may The governance and administrative not fully reflect the diversity of structures of KenInvest promote perspectives and experiences efficient decision-making. Clear within the organization. This guidelines and protocols are can lead to limited input and followed, ensuring that decisions decision-making processes that are made promptly and based on a do not consider a wide range of systematic approach. This enables viewpoints, potentially missing the organization to respond swiftly out on valuable insights. to emerging opportunities and • Inefficient decision-making challenges. processes: While effective • Transparent communication decision-making is a strength, channels: KenInvest has the structures may also face established transparent challenges that lead to delays communication channels within or inefficiencies in the decision- its governance and administrative making process. This could be structures. due to excessive bureaucracy This foster open dialogue and or insufficient collaboration information sharing among team and communication among members and departments. As stakeholders. 36 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation a result, stakeholders are well- • Limited accountability informed, leading to better mechanisms: While there is a understanding, collaboration, and culture of accountability, the alignment towards organizational governance and administrative goals. structures may lack robust • Accountability and responsibility: mechanisms to enforce and The governance and administrative monitor accountability. This structures at KenInvest enforce can result in instances where a culture of accountability individuals are not held and responsibility. Roles and responsible for their actions functions are clearly defined, and or where there is a lack of individuals are held accountable clarity regarding roles and for their respective tasks and responsibilities. deliverables. This cultivates a sense • Inadequate evaluation and of ownership and ensures that feedback processes: The objectives are pursued diligently, governance and administrative ultimately leading to greater structures may not have well- productivity and success. established mechanisms for • Overall, the effective governance evaluating the effectiveness and administrative structures of policies, processes, and in place at KenInvest serve initiatives. This can make it as a strong foundation for challenging to identify areas organizational success. They of improvement and make enable decisive decision-making, informed decisions for continual transparent communication, growth and development. accountability, and efficient resource allocation, all of which contribute to achieving its objectives. Internal Business • One Start-One Go Centre(OSOG) • Limited ability to influence policy Processes for investor facilitation • Lack of control over other • Kenya Investment Policy and government agencies’ investor County Investment Handbook approval processes • Strong and vibrant private • Inadequate marketing and sector with diverse investment promotion efforts due to opportunities. resource constraints • Inconsistent implementation of policies and regulations. Resources and • Experienced and knowledgeable staff • Limited resources and capacity Capabilities members in investment promotion to effectively manage and and facilitation, contributing to leverage the strong network effective decision-making and and relationships with key expertise in investment matters. stakeholders. • Establishment of regional • Potential challenges in offices in Eldoret, Kisumu, and maintaining and updating Mombasa, enhancing the reach the data and information and capability of the Authority management systems, leading to provide facilitation services to to outdated or inaccurate different counties. information. Strategic Plan: 2023 – 2027 37 Spearheading Equitable Investment-Led Transformation • Sufficient office space in a • Ineffective marketing and favorable environment, projecting communication strategies that a positive and professional image may hinder the Authority’s ability of KenInvest to effectively promote investment • Strong network and relationships opportunities and attract potential with key stakeholders, such as investors. government bodies, international • Lack of evidence or transparency organizations, and industry in the track record of successful experts, providing access to investment facilitation and valuable resources and expertise. promotion, making it difficult • Proven track record of successful to gauge the Authority’s actual investment facilitation and ability to deliver results. promotion, demonstrating the • Limited financial resources due Authority’s ability to deliver to low budgetary allocation and tangible results and attract overreliance on one source of investments to the country. funding. • Collaborative partnerships • Insufficient staffing and a lack with local and international of capacity-building programs business organizations, fostering leading to a sub-optimal a supportive ecosystem that organizational culture. encourages investment and • Low morale among staff members business growth due to limited opportunities for job advancement and professional growth. • Inadequate resources and capacity to effectively implement and manage information and communication technology systems.

3.1.5 Analysis of Previous Performance

3.1.5.1 Key Achievements The following provides an overview of KenInvest’s performance, with a specific focus on the most recent period from 2018 to 2022. Investment Promotion Marketing Focus • Drafting of an overarching Kenya Investment Policy (KIP) • Drafting of a County Investment Handbook to guide county governments on effective attraction and retention of private investment • Participation in various investment promotion forums Investment Facilitation & Aftercare Pre and Post Investment Focus • Establishment of a modern One-stop Centre (OSC) • Development of the MSME strategy developed; with more than 100 MSMEs facilitated, and 10 enterprises supported • Development of an Investor Case Management (CRM) system • Establishment of online platforms such as e-regulations 38 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Research & Policy Advocacy Insights and Data • Research and generation of 10 Country reports targeting China, USA, India, Japan and UAE • GCI surveys done with support of WEF; FDI survey 2019 done in partnership with KNBS Figure 7: Key Achievements (KenInvest) Breakdown of Number of Investment Projects, Capital Costs, and Impact in Kenya Table 11: Investment projects and Jobs facilitated 2018-2022 Year Number Capital Cost in KES Capital Cost in KES Total in Millions Employment of Projects Millions (Foreign) Millions (Local) (KES M) Numbers (Locals) 2018 187 31,617 17,603 49,221 8,913 2019 261 92,234 31,986 124,220 15,984 2020 156 87,565 13,508 101,074.3 5,437 2021 195 47,440 8,900 56,320 5,138 2022 209 76,152 7,266 83,418 5,655 TOTAL 1,008 335,008 79,263 414,253 41,127 Source: KNBS This measure is being replaced by World Bank’s Business Ready (B-Ready) Measure

3.1.5.2 Challenges Table 13: Challenges faced by KenInvest Challenges Impact on Achievement of Targets Inadequate • One major challenge faced by KenInvest is inadequate exchequer funding. This exchequer has hindered the full implementation of core activities such as investor targeting funding and aftercare programs, investment promotion, research and policy advocacy, corporate image building, branding, and awareness creation outlined in the Authority’s strategic plan for 2018-2022. • The limited funding has directly impacted KenInvest’s ability to achieve its targets and effectively carry out its mandate • The lack of sufficient financial resources limits the Authority's capacity to carry out marketing and promotional activities on a global scale, thereby reducing its ability to attract and secure investment projects. • Limited funding restricts KenInvest's ability to conduct research and policy advocacy effectively, which is crucial in creating an attractive investment environment and addressing the needs and concerns of potential investors. As a result, the Authority struggled to meet its targets in terms of attracting investment projects and stimulating economic growth. Weak • Reduced capacity for handling inquiries and applications: With a limited number Institutional of staff members, KenInvest struggled to efficiently handle the influx of inquiries capacity and and applications from potential investors. Visibility • Ineffective support for investors: Limited staffing resulted in inability to provide comprehensive support and assistance to investors throughout the investment process. This could include help with navigating regulatory frameworks, accessing government incentives, and obtaining necessary permits and licenses. Strategic Plan: 2023 – 2027 39 Spearheading Equitable Investment-Led Transformation • Difficulties in conducting market research and analysis: KenInvest struggled to conduct comprehensive research on investment opportunities, market trends, and investor preferences hampering the development of targeted marketing strategies and the identification of sectors with high potential for investment. Fragmented • KenInvest, although primarily to promote and facilitate investments in Kenya, efforts on faces a challenge in the lack of a unified approach to investments by other investment relevant government agencies, resulting in an investor journey that is fragmented promotion, and inefficient facilitation and coordination Lack of • KenInvest has faced challenges where there exists investor appetite for certain Investment projects or sectors, but there lacks investment-ready or investment grade grade projects projects in those specific sectors COVID-19 • Decline in investment interest: The pandemic has resulted in economic uncertainty pandemic and market volatility, leading to a decline in investor interest. Investors may caused become more cautious about making long-term investment decisions amidst significant the uncertain business and economic landscape. disruptions • Disruption in global supply chains: The pandemic has caused disruptions in to the global global supply chains, with many industries experiencing delays and disruptions economy and in their operations. The resulting uncertainties impacted investment decisions, investment as investors became hesitant to invest in projects reliant on global supply chains landscape. • Travel restrictions and reduced mobility: The implementation of travel restrictions and reduced mobility and made it more challenging for KenInvest to engage with potential investors interested in exploring investment opportunities in Kenya. Proposed merger • Loss of focus: The proposed merger led to a loss of focus on KenInvest core of KenInvest with mandate, diluting its efforts and reducing its effectiveness in attracting and other MDAs facilitating investments. • It becomes more difficult for KenInvest to attract and retain talented individuals. Without sufficient resources, the Authority was unable to offer competitive salaries, benefits, and professional development opportunities that can attract and retain high-caliber employees. This can negatively impact the overall effectiveness and productivity of the organization.

3.1.5.3 Lessons Learnt Table 14: Lessons Learnt Lesson Funding • The availability of sufficient funding is crucial for KenInvest to meet its strategic objectives effectively. Adequate financial resources enable the organization to carry out its investment promotion and facilitation activities, attract investors, and ultimately contribute to economic growth. • Building and maintaining the capacity of KenInvest, especially in terms of staffing, is paramount for its future success. A talented and skilled workforce is essential for executing the organization's mandate and achieving its goals. In the face of budget constraints, it is important to prioritize attracting and retaining qualified personnel through competitive compensation packages, training and development opportunities, and a supportive work environment. 40 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Staffing • Recognizing the importance of maintaining a sufficient number of staff members is crucial for KenInvest's future success. Adequate staffing levels ensure that the organization has the necessary human resources to effectively carry out its investment promotion and facilitation activities. This includes hiring talented individuals with the right skills and experience, as well as providing ongoing training and professional development opportunities to retain and enhance the capabilities of the existing workforce. • Investing in capacity building initiatives is essential for KenInvest to enhance its capabilities and effectively respond to changing market dynamics. By improving the knowledge, skills, and expertise of its staff, KenInvest can stay ahead of emerging trends in investor attraction and facilitation, adapt to new technologies and methodologies, and maintain a competitive edge in the market. This can be achieved through targeted training programs, knowledge sharing initiatives, and continuous learning opportunities. • Hiring skilled professionals, it is vital for KenInvest to implement strategies that promote staff retention. Creating a positive work environment, offering competitive compensation and benefits packages, recognizing and rewarding exceptional performance, and providing opportunities for career growth are all effective ways to attract and retain top talent. This will ensure that KenInvest has a dedicated and motivated workforce committed to achieving its goals. Collaboration • Building collaborative relationships and partnerships with other organizations, such as educational institutions, industry associations, or government agencies, can help KenInvest address staffing challenges as well as help ensure a more efficient investor experience. These partnerships can include joint training programs, internship opportunities, or knowledge-sharing initiatives. By leveraging external expertise and resources, KenInvest can enhance its capacity and access a wider pool of qualified candidates, mitigating staffing shortages and fostering innovation. In light of all the achievements, challenges and lessons learnt, Investment facilitation has been identified as pivotal to the delivery of the mandate of Kenya Investment Authority and its effectiveness anchors the country’s sustainable development aspirations. In order to address the challenge of effective investment facilitation and to unlock Foreign Direct Investment (FDI) and position Kenya as a competitive investment destination, The National Investment Council has developed a 7-step Kenya Rebecca Miano, Cabinet Secretary for Investments, Trade and Investment Facilitation Framework Industry of Kenya, stands alongside Elizabeth M. Kibaki, Senior that starts with inquiry by an investor Private Sector Development Specialist at the World Bank, June Chepkemei, MD of KenInvest, and Anthony Ngororano, and culminates into issuance of Resident Representative of UNDP Kenya, at the launch of the investment facilitation framework. Strategic Plan: 2023 – 2027 41 Spearheading Equitable Investment-Led Transformation investment certificate upon landing an investor and subsequent proactive and intentional after-care support. The framework provides for both physical and digital platform for effective investment facilitation as captured in the diagram below. The framework takes into account both new and existing investments to address pre and post investment facilitation concerns. One Start-One GO Investment Facilitation 1. Business Registration 2. Tax Advisory Registration 3. Environment Assessment Online (Virtual Offline (Physical 4. Connection to Utilities One Start/One One Start/One 5. Immigration Service Stop) Stop) 1. EPZ 2. SEZ Investment Advisory 3. Industrial Parks 4. Counties 1. Inquiry Opportunities 5. CAIPS Investment (General) Registration Investor Initiated 1. Financing Incentives 2. Intent to invest Projects 2. Linkage 3. Co-Investment Sectoral Approvals Regulatory Approvals Investible 3. Facilitation 4. Joint Venture Projects (Permits & Licenses) 5. Partnerships Appeal Mechanism 4. Project Analysis Green Channel Support 1. Due Diligence Through NIC for strategic/ 2. Impact Investment 5. Green Channel Impactful Investments/ 3. Strategic Investment (NIC Escalation) Unlocking 4. Project Appraisal (Set Criteria to assess) 5. Job Creation 6. Approval 6. Technology Transfer 7. Investment Certificate Figure 8: Investment Facilitation Framework Existing Investment Online (Virtual Offline One Start/One (Physical One Stop) Start/One Stop) 1. Business Registration 2. Tax Advisory Registration 3. Environment Assessment 1. Aftercare 4. Connection to Utilities 5. Immigration Services 1. EPZ 2. SEZ 1. Divesture 3. Industrial Parks Investment Advisory 2. Investment Structuring 2. Expansion 4. Counties 3. Re-Investment 5. CAIPS 4. Funding Options Investment Registration Incentives Sectoral Approvals Regulatory Approvals (Permits & Licenses) 3. Facilitation Appeal Mechanism Figure 9: PASHA - Existing Opportunities 42 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation A. New Investment Step 1: Inquiry • Investment enquiries made by potential investors will be lodged in the virtual one start one go platform or received at the physical One Start One Go Centre. Based on the nature of the inquiry, account manager will be assigned even as the system generates and allocates the investor a unique identifier, a provision through which progress of the inquiry can be tracked. • Tracking rights will be granted to Office of the President, members of NIC KenInvest staff, CS MITI and PS SDIP, concerned regulatory agencies, the investor among others. • Whereas some enquiries will be dispensed with at this stage, those that seek investment opportunities will proceed to the step. Step 2: Intent to Invest Step 3: Facilitation Potential investors shall express intent to invest in The investment facilitation dashboard will either of the 3 categories: offer 2 optional tabs and 1 mandatory tab • General Opportunities: Investors interested in for investors. These will include: scoping for opportunities in any sector of the i) Investment Registration: This will be economy shall select the general opportunities a mandatory tab for investors. It will tab from where they will be directed to involve capture of investment project e-opportunities portal and other related general details as well contact details for the investment opportunity repositories. investors. The information collected • Investor Initiated Projects: This category will through this portal will organized into encompass investors in need of facilitation for a database of investors in Kenya. projects generated themselves. The investor will be required to lodge the type of support needed ii) Investment Advisory: This tab on the online platform for attention and tracking. will contain hyperlinks to pre- The facilitation under this category could be: establishment services such as business i) Financing: Investor will access a link to a registration; tax advisory registration; database of financiers. environmental assessment; connection ii) Linkages: Investor to access a link to a to utilities; and immigration services. repository of service providers or relevant Furthermore, investors will be able to linkage required. access investment locations/sites such iii) Co-Investment: Investor to access a link to as Export Processing Zones; Special Kenya Development Corporation (KDC) or Economic Zones, Private Industrial other co-investors available in the market. Parks, Counties as well as County iv) Joint Venture: Investor to access a link to a Aggregation Industrial Parks. These databased of investors seeking joint ventures services will be available both at the based on the sector of interest. virtual and physical one start one go v) Partnerships: A link to a database of center. individuals or corporates in need of business/ iii) Investment advisory will also have a investment partners shall be provided to the feature that will enable investors to investor. access available fiscal and non-fiscal vi) Investible Projects: This will be a database incentives and to apply for the same. comprising of investor ready bankable projects with feasibility or prefeasibility iv) Regulatory Approvals: Permits and studies, verified and packaged for investor licensing regimes that define various uptake. Investors will access the projects in sectoral approvals will be accesses by this database for a fee. the investor through this tab. Strategic Plan: 2023 – 2027 43 Spearheading Equitable Investment-Led Transformation Step 4: Project Analysis Besides conducting due diligence to establish legal status, profile of directors/ project promoters, projects at this stage will undergo appraisal to establish level of impact to the economy; how strategic they are to the country’s development agenda; the potential to create and sustain jobs in large numbers; as well as transfer of technology to the economy. The analysis criteria will be informed by: How well the project fits in Kenya’s development agenda and aspirations Coherence The extent to which the project responds Ability to achieve Relevance Effectiveness intended objectives to Kenya’s needs and priorities Evaluation Criteria The likelihood of net The extent to which the benefits continuing over Sustainability Efficiency intervention delivers results in the medium and long an economic and timely way term Impact Ultimate development effects of the investment project Investment projects that meet the above criteria will either be approved implementation and issuance of investment certificate or escalated to the National Investment Council based of specific asks by the investor. Step 5: Green Channel (NIC Escalation) Based on the request presented by an investor, the secretariat will consider if proposals presented meet the following assessment criteria, in order to be considered for escalation to the NIC. Investment Exclusive Value for Value for Alignment Dealing Money Money The proposal The project must The proposal must The proposal must must align demonstrate that deliver value for be technically, with a Kenya’s the public money and an legally, and development interest is best acceptable cost/ commercially agenda served risk allocation feasible Step 6: Approval Step 7: Investment Certificate Upon consideration by the Investors who shall apply for the NIC and establishment that a certificate having satisfied the proposal ticks the metrics in step secretariat and or the council on the 5, the Council shall grant either viability of their investment projects part or all the asks presented shall be issued with investment and direct relevant agencies to certificate at a fee. implement. 44 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation A. Existing Investment Investments in this category require monitoring through periodic contact with investors; policy interventions, addressing strategic and administrative hurdles and anticipating investors’ future needs. Step 1: Inquiry Step 2: Aftercare and Investor Development Investment enquiries made Aftercare relates to reactive management of existing investors by existing investors will be based on inquiries presented and issues raised by investors. lodged in the virtual one start Investor development relates to proactively helping existing one go platform or received at companies to grow. This approach will involve a programmatic the physical One Start One Go investor visit on a quarterly basis. Centre. Based on the nature The secretariat will offer Aftercare Services and Investor of the inquiry, the account Development based of the following principles: manager will be assigned to • Consolidate: Improve low project implementation rates handle the issue even as the system generates investor • Retain: Prevent existing investors from leaving through unique identifier, a provision proactive post establishment facilitation through which progress of the • Embed: Extract benefits for development (socioeconomic inquiry can be tracked. Some of impact) enquiries will prompt aftercare • Expand: Promote re-investment. facilitation. • Diversify: Support opportunities for other, higher value investment activities. Step 3: Investment Restructuring Based on the feedback from Aftercare or Investor Development engagement, companies undertaking strategic realignment shall be facilitated by the secretariat to expand, divesture, re- invest and access funding options. Step 4: Post Investment Facilitation Secretariat shall offer post investment facilitation along investment advisory and regulatory approval service nexus.

3.2 Stakeholder Analysis Table 15: Stakeholder Analysis No. Stakeholder Role Stakeholder’s KenInvest expectations Expectations from stakeholders 1 Private Private investors Timely delivery of Timely investment Investors play a crucial role in services, competitive decisions: KenInvest play a crucial facilitating investments return on investment, expects private investors role as key in Kenya. They increased investment, to make timely investment stakeholders. expect timely delivery job creation, foreign decisions to avoid delays of services from exchange generation, in the implementation of KenInvest, ensuring and transfer of projects. efficiency and technology and skills. effectiveness in the investment process. Strategic Plan: 2023 – 2027 45 Spearheading Equitable Investment-Led Transformation These Private investors seek Active participation Compliance with investors competitive returns and collaboration regulatory requirements: bring in on their investment, in the investment Private investors are capital, driving them to invest process, adherence to expected to fully comply expertise, in promising ventures. regulatory requirements, with all regulatory and Active participation transparency and requirements and legal innovation, and collaboration disclosure of relevant obligations, including which from private investors information, and long- obtaining necessary contribute in the investment term commitment. permits and licenses. significantly process. This includes Streamlined and Job creation: KenInvest to the providing necessary Efficient Processes: expects private investors economic information, engaging Private investors expect to create employment growth and in dialogue, and KenInvest to provide opportunities, thereby development cooperating to streamlined and contributing to job creation of the overcome challenges. efficient investment and the reduction of country. processes that minimize Adhere to regulatory unemployment rates. requirements and bureaucratic hurdles Transfer of technology legal obligations, and delays. They and skills: Private ensuring compliance seek a one-stop-shop investors are expected to and transparency. experience where transfer technology and Demonstrate a long- they can easily access skills to local workers and term commitment to information, submit businesses, promoting nurturing sustainable applications, and knowledge transfer and investment projects in receive the necessary capacity building. Kenya. permits and licenses to start their businesses. Long-term commitment: KenInvest expects private Access to accurate and investors to demonstrate up-to-date information a long-term commitment on investment to their investments, opportunities, market ensuring sustainability and trends, regulations, and contributing to the overall policies. economic development of KenInvest to act as Kenya. a reliable source of information and engage in open and transparent communication. Support in navigating the investment landscape, understanding local laws and regulations, and identifying potential partners or service providers. Provide access to market intelligence, 46 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation including sector-specific information, investment feasibility studies, and analysis of market trends. Advocacy for investor- friendly policies and transparent regulations. They expect KenInvest to engage with relevant government agencies and stakeholders to ensure that policies are conducive to investment and that regulatory processes are transparent and predictable. Aftercare and Investor Relations: Private investors expect ongoing support from KenInvest even after their investment projects are established. Opportunities to network and collaborate with other investors, local businesses, networking sessions. and government officials. They expect KenInvest to create platforms for these interactions, such as investment forums, business matching events, and government officials. They expect KenInvest to create platforms for these interactions, such as investment forums, business matching events, and networking sessions. Strategic Plan: 2023 – 2027 47 Spearheading Equitable Investment-Led Transformation 2 National Policy Formulation: Stable and Predictable Supportive Investment Government The government Policies: Investors Policies: KenInvest expects is responsible expect the government the government to create for formulating to maintain stable and and maintain investment- investment policies consistent policies that friendly policies that attract and regulations that are predictable over both domestic and foreign investors. This includes create a favorable the long term. This providing incentives, tax environment for includes policies related breaks, and simplified both domestic and to taxation, regulations, regulatory frameworks foreign investors. They trade, and investment, to encourage investment establish guidelines among others. Frequent in various sectors of the and frameworks that changes or uncertain economy. outline the rights and policy environments can Streamlined Business responsibilities of discourage investment Registration and investors, ensuring and create risks for Licensing: KenInvest fair and transparent investors. looks to the government practices in the Investor Protection: to implement efficient investment process. Private sector investors procedures for business Legal and Regulatory expect the government registration and Framework: The to provide a legal licensing. They expect the government sets and framework that protects government to streamline processes, reduce enforces the legal and their investments. This bureaucracy, and ensure regulatory framework includes ensuring timely and transparent that governs the enforcement approvals, making it easier investments in the of property rights, for investors to establish country. They enact contract enforcement, and operate businesses in laws and regulations and effective dispute Kenya. that protect investors' resolution mechanisms. Infrastructure rights, ensure the Investors need Development: KenInvest security of their confidence that their expects the government investments, and investments will be to prioritize and invest promote a level safeguarded and in the development of playing field for all that legal remedies infrastructure. investors. are available if they Investor Protection and Investment Promotion: encounter any issues. Dispute Resolution: The government KenInvest relies on the serves as a promoter government to ensure the of investment protection of investors’ opportunities in rights, property, and the country, both investment. The national domestically and government to provide a internationally. reliable legal framework and effective dispute resolution mechanisms to address any investment- related disputes in a fair and impartial manner. 48 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Infrastructure Transparent and Marketing and Development: Efficient Governance: Promotion: KenInvest The government Investors value anticipates the government plays a vital role transparency and to actively market and in infrastructure efficiency in the promote the investment development, which government’s decision- opportunities and potential is critical for a making and regulatory of Kenya to attract processes. They expect conducive investment both local and foreign clear and streamlined environment. They investors. This includes procedures for obtaining invest in and develop engaging in investment licenses, permits, and physical infrastructure forums, organizing trade approvals. such as roads, missions, participating in airports, ports, and Infrastructure international exhibitions, energy facilities. Development: Private and providing information This infrastructure sector investors often and resources to potential rely on the government enhances business to develop and maintain investors. connectivity and infrastructure such as ensures smooth transportation networks, operation and growth energy systems, of investment projects. telecommunications, Investor Support and water supply. and Facilitation: The Investors expect a well- government provides developed infrastructure support and facilitation that enables efficient movement of goods, services to investors reduces costs, and throughout the entire improves connectivity investment process. domestically and This includes assisting internationally. with administrative procedures, providing Access to Finance: information and Access to affordable and reliable financing resources, helping is essential for private secure necessary sector investment. permits and licenses, Investors look to the and resolvingany government for policies regulatory or and initiatives that bureaucratic promote access to challenges that finance, including the investors may development of financial encounter. They act markets, incentives for as a central point of lending institutions, and contact for investors, support for innovative ensuring their financing solutions. This needs are met and facilitates investment their concerns are and lowers the cost of addressed. capital, contributing to the growth of businesses. Strategic Plan: 2023 – 2027 49 Spearheading Equitable Investment-Led Transformation 4 Board Responsible for Oversight over Lobbying for Policy overseeing the Management Issues: Change and Funding: implementation of Stakeholders expect the KenInvest expects the the organization's board of directors to board of directors to strategic plans. They provide proper oversight actively engage in lobbying play a key role in and guidance over efforts to advocate for ensuring that the management issues. policy changes that strategies formulated This includes monitoring promote a favorable by KenInvest are executive performance, business environment for effectively executed setting strategic goals investment. to achieve the and objectives, and Providing Support and organization's ensuring that the Leadership: KenInvest objectives. management team expects the board to Monitoring the operates in alignment provide the necessary progress and with the company's support and leadership performance of values and best to ensure the company's the organization, practices. continued success. reviewing the Assisting KenInvest Ensuring Effective Risk implementation of to Meet Performance Management: KenInvest key initiatives, and Targets: Stakeholders expects the board to taking necessary expect the board to oversee and ensure the actions to address any assist KenInvest in implementation of robust challenges or risks that fulfilling its performance risk management practices. may arise. contract or targets. This involves identifying The board provides This involves providing and evaluating potential guidance and support guidance and support risks to the organization's to the management to management in operations and reputation, team, ensuring achieving financial and as well as establishing that resources operational objectives, appropriate risk mitigation are allocated as well as ensuring the strategies to protect the appropriately, and the company's compliance company's interests. necessary measures with legal and are taken to achieve regulatory requirements. Promoting Innovation the desired outcomes. Fiduciary and Adaptability: Regularly engage KenInvest expects the Responsibility: board to promote a with the management Stakeholders depend on team to assess the culture of innovation and the board of directors adaptability within the effectiveness of to act in the best the strategies and organization. interests of the company adjust as needed to and its stakeholders. Enhancing Stakeholder ensure the successful They expect the Engagement: KenInvest implementation of board to exercise due expects the board to KenInvest strategic diligence in decision- actively engage with plans. making, oversee the stakeholders and foster Providing strategic management team, positive relationships. oversight to the and make strategic organization. They and ethical choices that uphold the long- 50 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation are responsible for term success and setting the overall sustainability of the direction and goals of organization. KenInvest, ensuring Stakeholder alignment with Engagement: the government’s Stakeholders expect objectives and policies. the board of directors The board provides to actively engage with guidance on key them and seek their strategic decisions, input on important reviews and approves matters. They may annual plans and expect the board to budgets, and monitors solicit feedback the progress and performance of the organization. 5 Regulators Ensure effective policy Complete Timely Processing of and implementation and Documentation for Approvals, Licenses, Facilitators protect the interests Processing Investor and Permits: Regulators of all stakeholders by Applications: and facilitators should carrying out regular Regulators and ensure that KenInvest inspections, promoting facilitators require receives timely and efficient comprehensive and processing of all required fair competition, accurate documentation approvals, licenses, and and creating a from KenInvest when business-friendly permits. processing investor environment that Clear and Transparent applications. fosters transparency Procedures: Regulators Disclosure of and efficiency in and facilitators should Information: Regulators KenInvest’s operations. and facilitators should maintain clear and Ensuring Compliance encourage KenInvest transparent procedures and Regulatory to be transparent in for KenInvest to follow Oversight: Regulators disclosing all relevant when seeking approvals, and facilitators are information about their licenses, and permits. expected to ensure that investment projects and They should provide KenInvest operates activities. detailed guidelines in full compliance Responsive and requirements, with relevant laws, and Supportive communicate any changes regulations, and Interaction: Regulators or updates, and ensure policies. and facilitators should that the processes are strive to establish easily understood by Streamline processes a responsive and KenInvest and other and create a business- supportive relationship stakeholders. friendly environment with KenInvest. This that promotes Professional Handling involves promptly transparency and of Investors: Demonstrate addressing any concerns efficiency. professionalism in their or issues raised by interactions with KenInvest KenInvest, and its investors. This Strategic Plan: 2023 – 2027 51 Spearheading Equitable Investment-Led Transformation Offer guidance and providing guidance and includes providing accurate support to KenInvest, assistance throughout and reliable information, assisting it in the investment process. offering prompt and navigating regulations, Conduct regular and courteous communication, accessing necessary efficient monitoring and assisting in resolving permits, licenses, and and assessment of any issues or concerns resources. KenInvest's activities to that may arise during the ensure adherence to investment process. Provide advisory services and share relevant regulations and Fast Response to industry insights to standards. Communication and help the organization Inquiries: Regulators maximize its potential and facilitators should and overcome any prioritize responding swiftly obstacles that may to communication and arise. inquiries from KenInvest. They should establish effective channels of communication, promptly acknowledge receipt of messages, and provide timely and appropriate responses to help KenInvest make informed decisions and progress with their investment plans. 6 Regional Promote regional Promote regional Facilitate access to Economic integration and integration and facilitate accurate and timely Blocs facilitate cross-border cross-border investments market information for investments within the within the region, investors, enabling them to region. This involves actively encouraging make informed decisions actively encouraging and supporting regarding investment and supporting investments that foster opportunities within the investments that foster economic cooperation, region. economic cooperation, trade, and partnerships Promote the harmonization trade, and among member states. of trade and investment partnerships among Facilitate policy policies among member member states. harmonization among states, reducing barriers Support in the member states to and creating a more alignment of policies create a conducive conducive environment for and regulations with environment for cross- cross-border investments. regional standards border investments Provide well-packaged and guidelines. Provide updated and regional investment Promotion of Intra- accurate information opportunities that regional Investment: for investors, ensuring are supported by KenInvest to actively transparency and comprehensive feasibility accessibility to support studies, ensuring that 52 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation promote and attract investment decision- potential investors have investment from within making. the necessary information the bloc. Support the and confidence to make diversification and informed investment KenInvest to actively expansion of key decisions. participate in collaborative initiatives economic sectors, Offer support to investment and projects that promoting innovation, promotion and facilitation promote economic competitiveness, and efforts, assisting investors integration within the sustainability within the in navigating bureaucratic bloc. region. processes, accessing Enhance collaboration necessary permits and and coordination licenses, and addressing among member states any obstacles or challenges to address common that may arise. challenges and leverage collective resources for mutual benefit. 7 Staff Accountability: Staff Support and Staff members are members are expected Resources: Staff expected to demonstrate to be accountable members expect the the necessary knowledge for their actions and organization to provide and expertise in their responsibilities. This them with the necessary respective roles. They includes fulfilling resources, tools, and should continuously assigned tasks, support to effectively develop their skills and meeting deadlines, perform their job duties. stay updated with industry and taking ownership Fairness and Respect: trends, regulations, and of their work. best practices relevant to Staff members expect their area of work. Collaboration: Staff to be treated fairly members are expected and with respect by Professionalism: Staff to work collaborativelythe organization. members are expected with their colleagues, This includes fair and to maintain a high level sharing knowledge, transparent policies of professionalism while ideas, and resources and procedures, equal representing Keninvest. to achieve common opportunities for growth This includes adhering to goals. and advancement, and the organization's code a work environment free of conduct, displaying Professionalism: Staff from discrimination or integrity and ethical members are expected harassment. behavior, and respecting to conduct themselves confidentiality. in a professional Recognition and manner, adhering Rewards: Staff Investor Service: Staff to the organization's members expect members are expected code of conduct and the organization to prioritize and provide displaying integrity, to recognize and exceptional service to honesty, and respect appreciate their efforts clients. in all interactions. and achievements. Strategic Plan: 2023 – 2027 53 Spearheading Equitable Investment-Led Transformation 8 General Investment Transparency and Active Participation: Public Opportunities: Accountability: The General public to actively The general public general public expects participate in investment can contribute by KenImvest to operate promotion efforts. identifying and sharing with transparency and Support and endorse potential investment accountability in its investment projects opportunities with the dealings. promoted by the agency. agency. Economic This can be done through Talent Pool: The Development and positive word-of-mouth, general public also Job Creation: The advocating for the projects forms part of the general public expects within their networks, or talent pool that investments that will showcasing the benefits of local and foreign contribute to local these investments to the investors seek when economic development wider community. considering investment and job creation. Public support is crucial opportunities. Environmental and in building investor Public Relations Social Responsibility: confidence and attracting and Advocacy: The Prioritize investments further investments to the general public can act that prioritize region. as advocates for the sustainable development Trust and Collaboration: agency's initiatives and and consider KenInvest expects the investment projects. environmental and general public to trust and social impacts. collaborate with the agency Investments that will in its mission to promote result in long-term investments. positive effects on the environment and society. 9 Providers of Supply and Prompt Payment: Reliability and goods and Delivery: Providers Providers expect Timeliness: KenInvest services are responsible for KenInvest to make timely expects providers to efficiently supplying payments for the goods deliver and perform their and delivering the or services rendered. obligations in a reliable necessary goods and Providers expect and timely manner. services as required clear and effective Quality and Standards: by KenInvest and its communication from KenInvest expects stakeholders. KenInvest regarding providers to deliver goods Accurately invoicing their requirements, and services that meet KenInvest and expectations, and any high-quality standards. promptly resolving any changes or updates reputation. issues or discrepancies related to the project or Compliance and Ethics: related to payment, service. KenInvest expects providers ensuring a seamless to conduct their operations financial transaction with integrity and comply process. with all relevant laws and regulations. 54 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Quality Assurance: Fair and Reasonable Effective Communication Providers should Contracts: Providers and Responsiveness: maintain a strong expect KenInvest to offer KenInvest expects providers commitment to fair and reasonable to maintain open and delivering high-quality terms and conditions responsive communication goods and services to in the contracts or channels. KenInvest. agreements. Cost-effectiveness: Providers may expect KenInvest expects providers KenInvest to provide to offer competitive pricing, opportunities for providing value for money collaboration and without compromising engagement. on quality. This helps Providers often value KenInvest optimize its long-term partnerships resources and achieve with KenInvest. cost-effectiveness in its operations. 10 Learning and Workforce Quality Education Providing Skilled Research Development: and Training: Learning Workforce: KenInvest Institutions Learning institutions, institutions should expects learning institutions such as universities, provide high-quality to produce graduates colleges, and technical education and training who possess the skills and training institutions, programs that are knowledge that are in can contribute to relevant to the needs demand in the workforce. the development of of KenInvest and the Industry Collaboration: a skilled workforce business community. KenInvest expects learning that meets the needs Industry-Relevant institutions to actively of KenInvest and the Research: Learning collaborate with businesses business community at institutions are expected and industries to foster large. to conduct research partnerships that drive Research and that is relevant to the economic growth. Innovation: Learning needs of KenInvest Entrepreneurship and institutions play a vital and supports Innovation Promotion: role in driving research economic growth and KenInvest expects learning and innovation, which development. institutions to promote is crucial for economic Partnerships and an entrepreneurial and development and Collaboration: innovative mindset attracting investment. Learning institutions among students. This can should actively seek be facilitated through partnerships and entrepreneurship education collaborate with programs, mentorship KenInvest and other initiatives, and access to stakeholders in the resources and support business community. for students interested in starting their own businesses. Strategic Plan: 2023 – 2027 55 Spearheading Equitable Investment-Led Transformation Entrepreneurship and Innovation Promotion: Learning institutions should foster an environment that promotes entrepreneurship and innovation among their students. Access to funding and incubation opportunities. 11 Private sector Investment Easier and Collaborate in addressing organizations Promotion and streamlined issues affecting the Facilitation: Private processes: Private business environment; sector organizations sector organizations encourage expansion of play a vital role expect KenInvest to investments. in promoting and provide a simplified Provide a simplified and facilitating investments and efficient process for efficient process for starting in the country. starting and operating and operating businesses. businesses. They look for a streamlined Job Creation: Private approval mechanism, sector organizations Investment promotion reduced bureaucracy, and contribute to job and facilitation: Private faster response times for creation by investing in sector organizations permits and licenses. various sectors of the expect KenInvest Actively promote economy. to actively promote investment opportunities Economic Growth investment opportunities and attract both local and and Development: and attract both local foreign investors. They rely Private sector and foreign investors. on KenInvest to provide organizations, through Consultation and comprehensive information their investments and engagement: Private on potential sectors, operations, contribute sector organizations market analysis, and to the overall expect KenInvest to investment incentives. economic growth and create a platform for Provide feedback, discuss development of the regular consultation and challenges, and propose country. engagement. policy reforms that enhance the country's investment climate. 12 County Promote equitable Collaboration in Actively work towards Government economic growth at investment promotion, attracting investment to the grassroot level project profiling, their respective regions. through working with information sharing, They expect support in National Government and facilitation. promoting their county’s unique investment opportunities and raising awareness among potential investors. 56 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Investment Investment attraction Provide guidance and Promotion and and economic growth: coordination in policy Attraction: County County governments matters that affect regional governments play expect KenInvest to investment promotion. a critical role in actively work towards Land zoning and promoting investment attracting investment to allocation: Keninvest opportunities within their respective regions. expects the county their respective Policy coordination government to efficiently counties. and guidance: zone land for investment Infrastructure County governments purposes and allocate land Development: expect KenInvest to banks for business and County governments provide guidance and industrial development. are responsible for coordination in policy Establishment of county the development matters that affect investment units: Keninvest and maintenance of regional investment expects the county key infrastructure. promotion. government to set up A well-developed dedicated investment units infrastructure is within their administrative essential for attracting structure. investments and Information facilitating business dissemination: Keninvest operations. expects the county Regulatory government to provide Environment: timely and accurate County governments information on available are responsible investment opportunities for creating a within the county. This conducive regulatory includes sharing details environment for about potential sectors, projects, and incentives businesses. They can that can attract investors to enact business-friendly the region. policies, streamline licensing and permit Creation of a conducive processes, and enforce investment environment: regulations that protect Keninvest expects the the rights of investors county government to create a business- friendly environment that encourages investment within their jurisdiction. Keninvest expects the county government to collect, maintain, and share data on investment projects and related variables within their region. Strategic Plan: 2023 – 2027 57 Spearheading Equitable Investment-Led Transformation 13 Kenya Promoting investment Updated bankable Promoting Kenya's missions, opportunities and projects and investment interests abroad: embassies, attracting foreign opportunities. Keninvest expects Kenya's and honorary direct investment Investment information missions, embassies, and consulates (FDI) to Kenya. They and data. honorary consulates to provide information, actively promote Kenya's Professional handling of assist with market investor delegations. interests in their respective research, facilitate host countries. Market intelligence and business partnerships, Sourcing investors investment promotion: and promote Kenya's Kenya missions abroad and sharing investor investment potential. intelligence: Keninvest expect KenInvest to Facilitate trade provide accurate and expects these diplomatic and investment by up-to-date market entities to proactively providing guidance intelligence to attract engage with potential and support to foreign investors. They investors in their host Kenyan businesses rely on KenInvest to countries, identify seeking international organize investment investment opportunities, forums, business and share relevant investor partnerships or market matching events, and intelligence with Keninvest. access. provide enhanced Conducting due diligence They act as a visibility for investment on prospective investors: liaison between the opportunities in Kenya. Keninvest expects Kenya's investors and relevant Investment facilitation missions, embassies, and government agencies, and support: Kenya honorary consulates to ensuring smooth missions abroad expect carry out thorough due investment operations. KenInvest to support diligence on prospective foreign investors seeking investors who show interest to invest in Kenya. They look for assistance in in investing in Kenya. facilitating their entry Follow-up with investors into the Kenyan market. in the pipeline: Keninvest Effective coordination expects Kenya's diplomatic and collaboration: entities to maintain Kenya missions abroad consistent communication expect KenInvest to and follow-up with investors work closely with them who are in the pipeline. as key stakeholders in promoting investments. 14 Development Provide financial Development partners Technical Support: Partners & support to Kenya for and international Development Partners and International various development organizations expect International Organizations organizations projects. KenInvest to provide a can provide technical clear and transparent expertise and guidance investment policy to KenInvest in various framework. They value areas, such as investment a predictable and stable promotion strategies, regulatory environment policy development, and that fosters investor implementation. 58 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Funding infrastructure confidence and protects Financial Support: development, capacity their interests. Development Partners and building programs, Strategic alignment International Organizations and economic and coordination: can provide financial diversification Development partners support to KenInvest to initiatives. and international strengthen its operations Advocate for policy organizations expect and undertake investment reforms and best KenInvest to align with promotion activities. practices that promote their development Capacity Building: sustainable economic priorities and strategies. KenInvest expects development and Development Partners poverty reduction. and International Organizations to provide capacity building support through training programs, workshops, and knowledge sharing initiatives. Linkages to Investors: Development Partners and International Organizations have extensive networks and connections with potential investors. 15 Foreign Promoting investment Updated bankable Technical Support: Missions & opportunities in their projects and investment Keninvest expects Kenya's embassies in respective countries. opportunities. missions, embassies, and Kenya They act as a bridge honorary consulates to between Kenyan and Investment information provide technical support foreign businesses, and data. to investors interested in providing information Kenya. and facilitating Provide information and business partnerships. Provide a seamless guidance on financial and efficient investment Promote bilateral incentives, grants, loans, process for their citizens. cooperation between and other support They value a simplified Kenya and their mechanisms available to registration process, respective countries. investors. smooth permit issuance, They facilitate trade and effective support in and investment Collaborate with investors establishing businesses dialogues, exchanges, in offering capacity in Kenya. and negotiations building initiatives. This to boost economic may include organizing ties and foster Maintain open training workshops, mutually beneficial and transparent seminars, or webinars to relationships. communication enhance the skills and channels. knowledge of investors interested in Kenya. Strategic Plan: 2023 – 2027 59 Spearheading Equitable Investment-Led Transformation Provide consular Actively engage with services to foreign potential investors, nationals living in or establish relationships, visiting Kenya. This and create networking includes visa and opportunities. immigration services, emergency assistance, and support to their citizens doing business in Kenya. 16 Parliament Legislative Actively engage with Legislative support: (national Framework: legislators to ensure Keninvest expects assembly and The Parliament that investment laws parliament to enact and senate); and is responsible for and policies are up to review legislation that Judiciary enacting laws and date and in line with supports investment regulations that the country's economic promotion and facilitation. promote a conducive goals. They seek collaboration business environment. Budget oversight: in drafting and amending Oversight and The parliament expects investment-related laws Accountability: KenInvest to provide and policies to create an Parliament plays regular updates enabling environment for a crucial role and reports on its investors. in overseeing financial activities and Budget allocation: government activities performance. Keninvest expects and holding them Accountability and parliament to allocate accountable for their monitoring: The adequate financial actions. parliament expects resources to support their Legal System and KenInvest to be investment promotion and Dispute Resolution: accountable for its facilitation activities. The Judiciary ensures actions and outcomes. Oversight and the rule of law and accountability: Keninvest provides an impartial expect parliament to legal system for provide oversight and hold dispute resolution. the agency accountable for their actions and outcomes. Judiciary Legal Framework: Dispute resolution Efficient dispute The judiciary helps and mediation: resolution: Keninvest in shaping and The judiciary expects expects the judiciary to interpreting the legal KenInvest to actively provide efficient and timely framework that provide alternative resolution of investment governs investments in dispute resolution disputes. They seek a fair Kenya. mechanisms to and impartial judicial efficiently and effectively process that protects the resolve investment- rights and interests of both related conflicts. investors and the country. 60 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Dispute Resolution: Compliance with court Legal interpretation The judiciary is orders: The judiciary and guidance: Keninvest responsible for expects KenInvest to expects the judiciary to resolving legal comply promptly with provide interpretation and disputes related to court orders related to guidance on investment investments. When investment cases. laws, regulations, and conflicts arise between Cooperate and contracts. investors and other parties, including the provide the necessary government or local information and Enforcement of court communities, the documents required for orders: Keninvest expects judiciary's impartiality effective adjudication of the judiciary to enforce and fair judgment are investment disputes. court orders related to crucial for providing investment cases promptly. confidence to investors that their rights will be protected. The judiciary ensures the effective enforcement of contracts, including investment agreements, leases, and other legal arrangements. Investors rely on the judiciary to resolve contract-related disputes promptly and fairly, fostering trust in the investment environment. Investor Protection: The judiciary plays a significant role in safeguarding the rights and interests of investors. Regulatory Compliance: The judiciary helps in ensuring compliance with investment-related regulations and legislation. It holds accountable those who violate laws and regulations, sending a clear message that Strategic Plan: 2023 – 2027 61 Spearheading Equitable Investment-Led Transformation adherence to rules is fundamental for a conducive investment climate 17 Media Disseminating Sharing of investment Accurate and fair Information: The information. reporting: Keninvest media is expected Timely communication expects the media to disseminate on new investment to provide accurate accurate and up- and fair reporting on issues. to-date information about investment Access to information: investment-related news The media expects and initiatives. They seek opportunities, policies, KenInvest to responsible journalism and incentives provide timely and that communicates the provided by KenInvest. accurate information benefits and challenges Promoting Success on investment of investing in Kenya Stories: The media opportunities, policies, without sensationalism or should highlight and developments. misinformation. success stories of investors who have Providing regular press thrived in Kenya, releases, interviews, and Awareness and showcasing the briefings to enhance promotion: Keninvest available opportunities understanding and expect the media to and positive create awareness about coverage of investment experiences. investment opportunities in initiatives. Raising Awareness: Kenya. The media plays a Transparency and vital role in raising accountability: Keninvest awareness about the expect the media to various sectors and hold them accountable industries in Kenya that offer investment for their actions and opportunities. outcomes. They encourage investigative journalism Holding Accountability: and constructive The media should reporting that helps act as a watchdog identify opportunities for by monitoring the improvement and ensures investment landscape transparency in their and holding dealings. KenInvest and other relevant stakeholders accountable. Collaboration: The media can collaborate with KenInvest in organizing investment- related events, such as conferences or seminars. 62 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Strategic Plan: 2023 – 2027 CHAPTER STRATEGIC ISSUES, 4 GOALS AND KEY RESULT AREAS This chapter outlines the strategic issues identified through situational and stakeholders’ analyses and presents the strategic goals and key result areas derived from them. Strategic Plan: 2023 – 2027 63 Spearheading Equitable Investment-Led Transformation

4.1 Strategic Issues Strategic issues are critical factors that can significantly impact the long-term success of an organization. The strategic issues for KenIvest are presented in Table 16.

4.2 Strategic Goals The strategic goals are the actual desired outcomes that will be realized in addressing the strategic issues identified. These are presented in Table 16.

4.3 Key Results Areas (KRA) FY 2023-2027 In the 2023-2027 strategic period, KenInvest will focus on the following Key Result areas as informed by the Strategic Issues and Strategic Goals in chapter 4: • KRA 1: Strengthening the Legal and Regulatory Framework for Investment Promotion and Protection. • KRA 2: Integrated Investment Facilitation and Aftercare Services • KRA 3: Refine and Promote Bankable Investment Opportunities • KRA 4: Targeted Investment Promotion and Attraction • KRA 5: Research and Policy Advocacy • KRA 6: Transformed Investment Promotion Agency The strategic issues, goals, and key result areas (KRA) will guide KenInvest towards a successful future. These strategic initiatives have been carefully developed to address the challenges and opportunities we face, and to further enhance our organizational capacity. As the organization implements its mission, it is crucial to address and overcome certain strategic issues that hinder organizational effectiveness. These issues have been identified as barriers that, once resolved, will allow KenInvest to optimize impact and legacy. By proactively focusing on these areas, the Authority aims to foster organizational growth, enhance stakeholder satisfaction, and align ourselves with prevailing market trends. Furthermore, in order to actualize our mission and navigate these strategic issues, we have set forth the following strategic goals as compass points to illuminate our path forward: 1. Enhance Organizational Efficiency and management is vital to our long- Effectiveness: We aim to streamline our term sustainability. By developing and internal processes and improve the overall implementing a comprehensive resource efficiency of our operations. By creating management strategy, exploring a culture of innovation and continuous innovative revenue sources, and improvement, we will optimize our establishing transparent financial systems, organizational performance to better serve we strive to optimize resource allocation our mission. and ensure our organization’s stability. 2. Strengthen Staff Capacity and 4. Foster Collaboration and Professional Development: We Partnerships: Collaboration and recognize the importance of our greatest partnerships are key drivers of success asset - our dedicated staff. Through in today’s interconnected world. By regular training and professional forging strategic alliances with like- development opportunities, we will minded organizations and stakeholders, empower our team members to grow and fostering collaboration and knowledge- thrive, ensuring high-quality outputs and a sharing, and engaging in joint initiatives, supportive work environment. we will leverage collective expertise and 3. Improve Resource Management resources, amplifying our impact and and Sustainability: Effective resource reach. 64 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation These key result areas will serve as benchmarks against which we will measure our progress, holding ourselves accountable for results and forging a path towards success. Detailed strategic issues, goals and Key Result Areas are captured in the table below: Table 16: Strategic Issues, Goals and KRA Strategic Issue Strategic Goal KRAs Weak legal & To Strengthen the legal and regulatory Strengthening the legal and regulatory framework framework regulatory framework for investment promotion and protection. Fragmented efforts on To implement the investment promotion Integrated Investment investment promotion, and facilitation framework Facilitation and Aftercare facilitation and Services coordination Lack of Investment To increase visibility and awareness of Refine and Promote grade projects bankable investment opportunities in Kenya Bankable Investment Opportunities Generic Investment To enhance targeted investment promotion, Targeted Investment Promotion Efforts attraction and retention efforts to attract Promotion and Attraction a diverse range of local and international investors Lack of evidence- To Collect, Collate and Conduct Research and Policy based research and comprehensive research and data analysis Advocacy policy advocacy on investment environment Weak Institutional To build a globally competitive Investment Transformed investment capacity and Visibility promotion agency promotion agency Strategic Plan: 2023 – 2027 65 Spearheading Equitable Investment-Led Transformation Strategic Plan: 2023 – 2027 CHAPTER STRATEGIC 5 OBJECTIVES AND STRATEGIES The chapter highlights the strategic objectives upon which the projected performance for the next five (5) years is based along with the outcomes and corresponding indicators. To drive this performance, the strategic choices including the strategies are captured below. KenInvest seeks to shift gears with its 2023- 2027 Strategic plan by focusing on 6 Key Result Areas to become Kenya’s investment facilitator of choice and most credible data owner while driving investment in the following priority sectors as per the BETA model. The key focus sectors are Agriculture, MSMEs, Digital Superhighway and Creative Economy, Healthcare and Housing, in line with BETA. 66 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation

5.1 Strategic Objectives This section outlines the objectives, the outcomes for each strategic objective and projections for the outcomes over the five years. KenInvest has identified 6 strategic objectives for the 2023 -2027 plan period as listed below. a) To Strengthen the Legal and Regulatory Framework b) To Implement the Investment Promotion and Facilitation Framework c) To Increase Visibility and Awareness of Bankable Investment Opportunities in Kenya d) To Enhance Targeted Investment Speakers engage in a panel discussion during the 3rd Promotion, Attraction and Retention Kenya International Investment Conference (KIICO) efforts to attract a diverse range of held in Nairobi, Kenya in May 2023. local and international investors e) To Collect, Collate and Conduct comprehensive research and data analysis on investment environment f) To Build a Globally Competitive Investment Promotion Agency KenInvest Vision & Mission Strengthening the legal and regulatory framework for OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES Integrated Investment Facilitation and Aftercare To To To increase To enhance To Collect, To build a strengthen implement visibility targeted Collate and globally Targeted Investment Promotion and Transformed investment promotion the legal the and investment Conduct competitive Research and Policy Advocacy and investment awareness promotion, comprehensi Investment Refine and Promote Bankable regulatory promotion of bankable attraction ve research promotion framework and investment and and data agency facilitation opportuniti retention analysis on framework es in Kenya efforts to investment attract a environment Services investment promotion and protection. Attraction agency diverse Investment Opportunities range of local and international investors Investment Framework Technology & innovation Capacity Building Improved Governance Strategic Plan: 2023 – 2027 67 Spearheading Equitable Investment-Led Transformation Table 17: Outcomes Annual Projections Strategic Outcome Targets Outcome Objective Indicator Year 1 Year 2 Year 3 Year 4 Year 5 An enabling legal and regulatory % of framework for 20% 40% 40% implementation investments implemented SO1: To Evidence-backed strengthen No. of proposals on the legal and recommendations investments regulatory submitted during 4 5 5 5 5 landscape and framework budget/law ecosystem to drive making processes policy advocacy Up to day Investment laws No. of reviews 1 1 1 1 1 and Regulations Majority of government No. of agencies SO2: To agencies enrolled integrated in 9 15 15 15 15 Implement in PASHA for PASHA investment smooth investor promotion process and facilitation 100% of % of investments framework investments tracked by 25% 50% 75% 100% 100% being tracked by KenInvest KenInvest Bankable SO3: To No. of Bankable Investment Increase visibility Investment Opportunities 50 50 50 50 50 and awareness Opportunity identified and of bankable reports prepared promoted investment Investment Grade Value of opportunities in Projects packaged Investments in KES 10 10 10 10 10 Kenya and promoted Billions SO4: To At least 100 No. of SMEs enhance SMEs facilitated 30 50 100 100 100 supported targeted annually investment Up to KES Value of promotion, 1 Trillion in Investments in KES 200 200 200 200 200 attraction and investments by Billions retention efforts 2027 to attract a diverse range Up to KES 50 Value of of local and Billion in DDI by Investments in KES 10 10 10 10 10 international 2027 Billions investors 68 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Database for SO5: To Existence of investment-ready 1 1 1 1 1 Collect, Collate Database project profiles and Conduct 100% of data and comprehensive research collected % of data research and and disseminated disseminated data analysis 50% 75% 100% 100% 100% through the through data on investment KenInvest data portal environment portal New % of organizational implementation SO6: To Build structure of new 50% 40% 10% - - a globally developed and organizational competitive implemented structure Investment Recategorizing promotion % progress in of KenInvest to agency recategorization 30% 50% 20% - - attract and retain of KenInvest talent

5.2 Strategic Choices KenInvest’s strategic choices for the plan period re summarized below: Table 18: Strategic Objectives and Strategies Key Result Strategic Objective(s) Strategies Areas Strengthening To strengthen the • A reviewed Investment promotion Act the legal and legal and regulatory • Strong dispute resolution mechanisms regulatory framework • Updated investment laws and regulations framework • Consistent interpretation and enforcement of for investment investment-related laws and regulations promotion and protection. • Enact polices that will support a predictable investment climate Integrated To implement • A Strong and automated operational investor Investment investment promotion facilitation framework Facilitation and and facilitation • Maintenance of comprehensive sector-specific Aftercare Services framework records of all investments in Kenya • Streamline regulatory processes and reduce red tape Refine and To increase visibility • Focus on sector-specific product value chains on Promote and awareness of potential investment opportunities Bankable bankable investment • Provide transaction advisory and project appraisal Investment opportunities in Kenya services. Opportunities • A revamped marketing strategy Strategic Plan: 2023 – 2027 69 Spearheading Equitable Investment-Led Transformation Targeted To enhance targeted • Target high quality and impactful DDI and FDI in Investment investment promotion, the focus industries guided by Bottom-Up Economic Promotion and attraction and retention Transformation Agenda (BETA) Attraction efforts to attract a • Identify and package investment opportunities, diverse range of local incentives and projects in Kenya and international • Facilitate establishment and retention of new investors investments in Kenya • Prioritize and Facilitate new investments aligned with SDGs • Support county governments to promote and facilitate investments • Collaborate with regional IPA's/Regional Bodies on Investment • Develop sector value chains • Develop and implement MSME capacity support programmes • Media Engagement Research and To Collect, Collate • Strengthen investment data capture and Policy Advocacy and Conduct management comprehensive • Establish partnerships with other government research and data agencies to enhance data sharing analysis on investment • Liaise with county governments in data collection to environment promote investments into counties • Enhance Policy Advocacy Monitoring • Improve the dissemination of investment data Transformed To Build a globally Enhance the Corporate Identity, Image and Reputation investment competitive Investment Institutional capacity building and development promotion agency promotion agency Enhance KenInvest's resilience and adaptability Strengthen Performance Management System Implement effective corporate governance practices. Ensure compliance with laws and policies Strengthen fiduciary assurance and transparency Enhance financial management in the Authority Streamline KenInvest's processes and eliminate waste. Improve resource utilization rates through better planning and monitoring. 70 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Strategic Plan: 2023 – 2027 CHAPTER IMPLEMENTATION 6 AND COORDINATION FRAMEWORK This section presents the implementation plan that has been set out in the implementation matrix followed by the Key Risks and the Management Framework.

6.1 Implementation Plan For KenInvest to deliver on its mandate, it targets to strengthen its human resource, infrastructure, financial resource and technological expertise. The Authority will also partner with other government and private sector institutions to facilitate a smooth investor journey. Strategic Plan: 2023 – 2027 71 Spearheading Equitable Investment-Led Transformation 72 Table 19: Implementation Matrix Strategy Key Activities Expected Output Output Indicators Target Budget (KES Mn) For 5 Target Responsibility years Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5 Lead Support Strategic Issue: Weak legal & regulatory framework Strategic Goal: Establish an enabling legal and regulatory framework for investment coordination, facilitation and promotion KRA 1: Strengthening the legal and regulatory framework for investment promotion and protection. Strategic Objective 1: To strengthen the legal and regulatory framework A reviewed Review of the Review of the % of completion Investment Investment Investment

6.1.1 Action Plan 100% 50% 50% - - CRS LCA promotion Act promotion Act, promotion Act, - - - 2004 2004 done Strong dispute Implement an An efficient and % of resolution efficient and transparent implementation mechanisms transparent mechanisms mechanisms for resolving 100% 50% 50% - - CRS LCA Strategic Plan: 2023 – 2027 - - - Spearheading Equitable Investment-Led Transformation for resolving investment investment disputes disputes implemented The action Plan sets out the Key activities that will be undertaken in order to achieve the set-out Updated Coordinate Investment laws No of reviews and investment laws and conduct and regulations updates and regulations regular reviews reviewed and and updates of updated 10 2 2 2 2 2 CRS LCA 1.0 1.0 1.0 1.0 1.0 investment laws and regulations objectives and creating a budget for each. laws and Research No. of research regulations and analysis reports prepared from other conducted and countries that research reports 5 1 1 1 1 1 P&R CRS have successfully prepared 2.0 2.0 2.0 2.0 2.0 attracted foreign investment Consistent Conduct Legal Legal Audit No. of Audit interpretation Audit Conducted Reports and enforcement 5 1 1 1 1 1 - - LCA CRS - - - of investment- related laws and regulations Implement Enhanced % Level of presidential compliance Implementation directives, circulars 100% 50% 50% - - - - - CRS LCA - - - and executive orders Enact polices Enhance legal Implementation % of that will support framework to push of compulsory implementation a predictable for compulsory framework investment registration of climate investments to allow KenInvest to 100% 50% 50% CRS LCA 1.0 1.0 1.0 1.0 1.0 predict investment climate and to generate revenues TOTAL 4.0 4.0 4.0 4.0 4.0 Strategic Issue: Fragmented efforts on investment promotion, facilitation and coordination Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Strategic Goal: Streamline and consolidate investment promotion, facilitation and coordination efforts KRA: Integrated Investment Facilitation and Aftercare Services Strategic Objective: To implement investment promotion and facilitation framework 73 74 A Strong and Operationalize Investor % of automated the automated Facilitation implementation operational One Start One Go Framework 100% 20% 20% 20% 20% 20% OSOG AC investor investor facilitation Implemented 2.0 3.0 4.0 6.0 11.0 facilitation framework framework Establish a robust Tracking and % of establishment system for tracking monitoring system and monitoring established 100% 40% 40% 20% OSOG AC investment flows 0.5 0.5 0.5 1.5 3.5 on a monthly basis Develop a Investor Incentive % of development comprehensive Framework 1005 45% 55% ICT AC investor incentive developed 0.5 0.5 0.5 1.5 3.5 framework Coordinate County No. of units Strategic Plan: 2023 – 2027 Establishment of Investment units Spearheading Equitable Investment-Led Transformation 10 2 2 2 2 2 AC PRM County Investment 3.0 4.0 7.0 15.0 20.0 units Integrate PASHA Government No. of agencies Agencies integrated 15 3 3 3 3 3 AC PRM 4.0 4.0 4.0 5.0 11.0 Integrated Reduce average Process lead time % of improvement process lead time improved 100% 30% 50% 20% - - ICT AC 7.0 10.0 15.0 5.0 7.0 Digitize One Services Digitized No. of services Start-One Go digitized 30 10 10 10 - - ICT PRM Services for ease 16.0 17.0 23.0 33.0 28.0 of tracking Maintenance of Implementaton Mandatory % of comprehensive of a mandatory registeration implementation sector-specific registration of all implemented 100% 30% 60% 10% PRM AC records of all investments 1.0 0.5 0.5 1.5 0.5 investments in Kenya Streamline Sign agreement Agreements No., of regulatory with other signed agreements signed processes and regulatory boies reduce red tape to work hand in 5 1 1 1 1 1 AC PRM 1.0 0.5 0.5 1.5 0.5 hand to simplify the investor journey TOTAL 35.0 40.0 55.0 70.0 85.0 Strategic Issue:Lack of Investment Grade Projects Strategic Goal: Profile, package and market investment-grade projects across key sectors of the economy, guided by key value chains under BETA KRA: Refine and Promote Bankable Investment Opportunities Strategic Objective: Increase visibility and awareness of bankable investment opportunities in Kenya Focus on sector- Develop a Sector specic % of development specific product sector specific database value chains opportunity and developed 100% ICT DAS on potential project databae 5.0 8.0 8.0 9.0 12.0 investment opportunities Develop sector- Population Frequency of data specific product of the sector- population value chains specific product on potential value chains 60 12 12 12 12 12 ICT DAS 15.0 19.0 19.0 20.0 21.0 investment on potential Strategic Plan: 2023 – 2027 opportunities investment Spearheading Equitable Investment-Led Transformation opportunities 75 76 Provide Development Transaction % of transaction of a transaction Appraisal implementation advisory appraisal system database 100% 20% 60% ICT DAS and project implemented 10.0 16.0 16.0 17.0 18.0 appraisal services. Develop and Marketing No. of strategies implement Strategies developed and marketing developed and implemented strategies to imlemented 30 6 6 6 6 6 MIP PRM effectively 5.0 8.0 8.0 9.0 11.0 promote bankable investment opportunities A revamped Conduct targeted Targeted No. of targeted marketing marketing and marketing marketing strategy promotion brochures brochures Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation prepared and prepared and 60 12 12 12 12 12 MIP PRM 5.0 9.0 9.0 10.0 13.0 disseminated disseminated TOTAL 40.0 60.0 60.0 65.0 75.0 Strategic Issue: Generic Investment Promotion Efforts Strategic Goal: Increase the effectiveness of investment promotion activities KRA: Targeted Investment Promotion and Attraction Strategic Objective: Enhance targeted investment promotion, attraction and retention efforts to attract a diverse range of local and international investors Target high Develop a Kenya Investments Launch of Strategy quality and Investment promotion and impactful DDI Promotion communication and FDI in the and Integrated strategy focus industries Communications 1 1 1 1 1 1 MIP DAS guided by Strategy 5.0 8.0 5.0 5.0 5.0 Bottom Up Economic Transformation Agenda (BETA) Coordinate Conferences No. of conferences and organize national and county investment conferences 22 4 4 4 5 5 AC PRM 66.5 69.5 74.0 83.0 89.5 and forums in partnership with relevant stakeholders Conduct diaspora Investment Investment Forums investment forums Forums 5 1 1 1 1 1 MIP DAS 18.0 20.0 20.5 23.5 28.0 Conducted Destination Image building No. of campaigns image building to campaigns done make Kenya the 10 2 2 2 2 2 CBPR DAS most preferred 20.0 22.0 24.0 27.5 31.0 investment location Re-open the JKIA JKIA Office Open Office Launch 1 1 0 0 0 0 HRA PRM Airport office Strategic Plan: 2023 – 2027 10.0 5.0 5.0 5.0 5.0 Operationalize Desks at No. of desks Spearheading Equitable Investment-Led Transformation KenInvest desks Biashara centers operationalized 47 10 10 10 10 7 HRA PRM 77 at the Biashara operationalized 1.0 1.0 1.0 1.0 1.0 Centers 78 Identify and Work with relevant Database of Database package stakeholders and Project Profiles Developed investment partners to profile established opportunities, and package 1 1 DAS ICT incentives and bankable public & 2.0 2.0 2.0 2.0 2.0 projects in private investment Kenya projects and incentives. Develop Database Database Annual Updates of collapsed/ developed stalled private investment projects across counties 5 1 1 1 1 1 DAS ICT in collaboration 0.5 0.5 0.5 0.5 0.5 with CIUs and County Regional Strategic Plan: 2023 – 2027 Economic blocs Spearheading Equitable Investment-Led Transformation Profile priority Value Chain pitch No. of pitch decks sector value chains decks done 8 0 2 2 2 2 DAS MIP 2.0 2.0 1.0 1.0 1.0 Develop, update Information packs No. of information and disseminate developed packs 10,000 2,000 2,000 2,000 2,000 2,000 MIP PRM information packs 3.0 3.0 4.0 3.0 3.0 and guides Facilitate Develop a Road map Operational road establishment Comprehensive developed map and retention of Investor Roadmap 1 1 - - - - DAS MIP 3.0 3.0 4.0 5.0 5.0 new investments in Kenya Review and Tracking report Percentage of implement investor projects tracked Aftercare and 100% 100% - - - - RIA AC 0.5 0.5 0.5 0.5 0.5 tracking strategy and program Identify & Aftercare Report % of issues document policy tracked and issues collected followed up 100% 100% - - - - RIA AC 0.5 0.5 0.5 0.5 0.5 during aftercare Establish investor Investor enquiry % of inquiries enquiry and and management handled 100% 100% - - - - ICT RIA management system 0.5 0.5 0.5 0.5 0.5 system established Develop an Investors % of investors complaints implementation complaints handling 100% 20% 30% 50% - - RIA ICT 0.5 0.5 0.5 0.5 0.5 handling framework framework developed Conduct Satisfaction No of Surveys annual investor Survey 5 1 1 1 1 1 PLR CBPR 3.0 3.0 3.0 3.0 3.0 satisfaction survey Prioritize and Capacity building Trainings No of Capacity Facilitate new on Facilitation Conducted Building Sessions investments of SDG aligned 10 2 2 2 2 2 MIP CBPR and trade fairs investments 3.0 3.0 4.0 4.0 4.0 aligned with Strategic Plan: 2023 – 2027 SDGs Spearheading Equitable Investment-Led Transformation 79 80 Design and Program Operational implement a Implemented Program program on prioritizing and 1 - 1 - - - MIP CBPR 2.0 3.0 4.0 5.0 5.0 Facilitating investments that promote SDGs Develop a tool Monitoring Tool Operational tool to monitor and evaluate 1 - 1 - - - MIP CBPR implementation 2.0 4.0 4.0 4.0 4.0 of SDG related Investments Best Practices Successful No of exchange Exchange Exchange programs programmes with Programs IPA's implementing 5 1 1 1 1 1 AC CBPR 10.0 13.0 15.0 16.5 17.5 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation SDG investment facilitation approach Support county Provide support County No of counties governments and Capacity engagement engaged to promote Building to forums 25 5 5 5 5 5 AC PRM and facilitate counties to 10.0 13.0 17.0 18.5 18.5 investments facilitate increased FDI and DDI. Support counties No. of county No. of Counties to establish investment units/ engaged County Investment service level 25 5 5 5 5 5 AC PRM 5.0 5.0 5.0 5.0 5.0 Units (CIUs) agreements entered Engage county Engagement No. of counties governments to Reports engaged 10 2 2 2 2 2 AC PRM zone land for 2.0 3.0 3.0 3.0 3.0 investments Collaborate with Collaborate with No of Forums/ No. of forums regional IPA's/ regional IPA Engagements Regional Bodies investment affairs/ 10 2 2 2 2 2 AC PRM on Investment conferences ( 4.0 5.0 6.0 6.5 7.0 EAC, COMESA, AfCFTA) No. of MOUs/ 20 4 4 4 4 4 No of Exchange programmes, No of Joint Events 10 2 2 2 2 2 Develop sector Conduct sector/ Sector profiles Number of sector value chains value chain profiles/ reports 10 2 2 2 2 2 PLR AC 1.0 1.0 1.0 1.0 1.0 Develop and Develop and BDS Strategy Launch implement Implement Launched MSME capacity a Business 1   1 - - - - MIP PRM 2.0 2.0 2.0 2.0 2.0 support Development programmes Strategy (BDS) Offer advisory Advisory services No. of SMEs services to SMEs done 500 100 100 100 100 100 DAS MIP 1.0 2.0 2.0 2.0 2.0 Conduct joint Trainings No. of trainings Business and conducted Strategic Plan: 2023 – 2027 entrepreneurship Spearheading Equitable Investment-Led Transformation 5 6 DAS MIP training with 6.0 6.0 6.0 81 stakeholders 82 Provide linkage to MSMEs linked to No. of MSMEs financial service financiers 500 100 100 100 100 100 DAS PRM 5.0 5.0 5.0 5.0 5.0 providers Provide linkage Support services No. of support for SMEs to access done services support services and the partners 500 100 100 100 100 100 DAS PRM 5.0 6.0 6.0 6.0 6.0 they need to grow their businesses Support MSMEs to Support services No. of MSME undertake climate done support investments and 500 100 100 100 100 100 DAS PRM 5.0 7.0 7.0 7.0 7.0 access climate financing Organize and Matchmaking No. of matches Strategic Plan: 2023 – 2027 participate in events organized made Spearheading Equitable Investment-Led Transformation local, regional and international 500 100 100 100 100 100 PRM DAS 5.0 7.0 7.0 7.0 7.0 events for SMEs matchmaking Media Conduct Media Media No. of Engagement Engagements Engagements engagements 10 2 2 2 2 2 - - CBPR MIP 2.0 - 4.0 conducted TOTAL 220.0 200.0 240.0 260.0 280.0 Strategic Issue: Lack of evidence-based research and policy advocacy Strategic Goal: Leverage on Evidence Based Research and Policy Advocacy KRA: Research and Policy Advocacy Strategic Objective: Collect, Collate and Conduct comprehensive research and data analysis on investment environment Strengthen Conduct in- Studies conducted No. of Studies investment data depth research conducted capture and and srudies management to identify the key challenges, opportunities, 10 2 2 2 2 2 PLR PRM 1.0 1.0 1.0 1.0 1.0 and policy issues affecting the investment environment. & Surveys Profile various Sectors Profiled No. of sectors sectors profiled 10 2 2 2 2 2 PLR PRM 1.0 1.0 1.0 1.0 1.0 Upgrade and Data Centre % of digitization Digitize the Data Digitized Resource Centre 100% 20% 20% 20% 20% 20% ICT PRM 12.0 12.0 12.0 12.0 12.0 to improve data access Conduct Investor Surveys No. of surveys and Customer conducted conducted 20 4 4 4 4 4 - - PLR PRM Satisfaction - - - Surveys Establish Establish Reports released No. of reports partnerships partnerships with released with other other government government agencies to 20 4 4 4 4 4 AC PRM 1.0 1.0 1.0 1.0 1.0 agencies to enhance data enhance data sharing sharing Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation 83 84 Liaise with Liaise with county Agreement's No. of agreements county governments in signed signed governments in data collection with county data collection to promote governments 10 2 2 2 2 2 AC PRM 1.0 1.0 1.0 1.0 1.0 to promote investments into investments into counties counties Enhance Policy Establish Policy Conduct regular No. of Audits and Advocacy Advocacy audits and Reviews conducted 10 2 2 2 2 2 PA PRM Monitoring monitoring system Reviews 2.0 2.0 2.0 2.0 2.0 Improve the Implement a Communication % of dissemination of communication strategy implementation investment data strategy to implemented effectively disseminate 100% 50% 50% - - - CBPR PRM 2.0 2.0 2.0 2.0 2.0 research findings to relevant stakeholders and Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation policymakers. TOTAL 0 0 20.0 20.0 20.0 20.0 20.0 Strategic Issue: Weak Institutional capacity and Visibility Strategic Goal: Structure and Strengthen Institutional capacity and visibility KRA: Transformed investment promotion agency Strategic Objective: To build a globally competitive Investment promotion agency Enhance the Conduct Awareness No. of awareness Corporate targeted visibility Campaign plans campaigns Identity, Image & awareness conducted 5 1 1 1 1 1 CBPR MIP 20.0 20.0 20.0 25.0 20.0 and Reputation campaigns Set up Platform No..of media operationalize operationalized / investor Invest 254 Arena engagements 10 2 2 2 2 2 MIP PRM 40.0 Develop and Developed No. of Corporate Design Corporate and Designed Items produced Memorabilia Corporate and distributed 5,000 1,000 1,000 1,000 1,000 1,000 CBPR MIP 10.0 10.0 10.0 10.0 10.0 Memorabilia Ubndertake Impactful CSR/ No. of CSR Corporate Social ESR Programmes programmes Responsibility successfully implemented 10 2 2 2 2 2 CBPR MIP 7.0 7.0 9.0 11.0 20.0 Programmes undertaken Design and Investment Award No. of award implement Annual Ceremonies ceremonies 5 1 1 1 1 1 CBPR MIP 7.0 7.0 9.0 15.0 26.6 investor awards conducted Institutional Implement Approved Percentage of capacity approved Organization implementation 100% 30% 30% 40% 0% 0% HRA PRM building and organization Structure 35.0 45.0 60.0 development structure Implemented Review and Reviewed and No. of Human implement HR Implemented Resource Plans manuals manuals prepared 1 - 1 - - - 3 HRA PRM 3.0 3.0 3.0 4.0 Implement a Mentorship % of mentorship Program implementation program implemented to facilitate 100% 50% 50% - - - HRA F&A 28.0 14.0 knowledge transfer and skill development. Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation 85 86 Conduct regular Scenario Planning No. of Scenario scenario planning Exercises Planning Exercises exercises to test conducted conducted 5 1 1 1 1 1 ARA PRM and improve 24.0 24.0 31.0 50.6 40.0 organizational resilience. Establish a New ideas No. of New ideas cross-functional implemented implemented innovation task force to generate 10 2 2 2 2 2 HRA F&A 2.0 2.0 2.0 2.0 2.0 and implement new ideas annually. Increase the Increased % increase in number of implementation suggestions employee of employee 50% 10% 10% 10% 10% 10% HRA F&A 1.0 1.0 1.0 1.0 1.0 suggestions suggestions Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation implemented Conduct staff Trained staff Average % trainings increase in number of training hours per 100 20 20 20 20 20 HRA F&A 24.9 30.0 59.2 90.0 100.0 employee Conduct Staff Surveys Number of Surveys satisfaction conducted conducted 20 4 4 4 4 4 HRA F&A Surveys 2.0 2.0 2.0 2.0 2.0 Implement staff Implemented No. of staff car/ mortgage Schemes accessing loan loan schemes schemes 100 20 20 20 20 20 HRA F&A 30.0 45.0 55.0 80.0 93.0 Enhance Develop and Business % of KenInvest's implement a continuity plan implementation resilience and comprehensive implemented adaptability business continuity 100% 50% 50% - - - 9.0 17.0 plan to mitigate risks and minimize downtime. Strengthen Automate the Automated % implementation Performance performance System of the automated Management appraisal system Implemented System 100% 50% 50% - - - 0 - ICT HRA 1.0 1.0 1.0 System Monitoring and Quarterly & No. of reports Evaluation of Annual Reports Strategic Plan, published 5 1 1 1 1 1 ICT HRA Work Plans and 8.0 8.0 8.0 8.0 8.0 Performance Contract Implement Formulate, adopt Approved Board No. of Board effective and implement an Annual Almanac and Committees corporate annual almanac Meetings 5 1 1 1 1 1 HRA ARA 5.0 10.0 14.0 15.0 18.0 governance of the Board practices. Conduct Board Board members No. of Trainings induction and inducted and conducted 5 1 1 1 1 1 10 HRA ARA 14.5 24.0 26.0 32.0 training trained Conduct annual Evaluations done No. of evaluations Board evaluation 5 1 1 1 1 1 HRA F&A 8.0 10.0 12.0 13.0 15.0 Strategic Plan: 2023 – 2027 Implementation of Mwongozo % level of Spearheading Equitable Investment-Led Transformation Mwongozo Code implemented implementation 100% 10% 15% 15% 30% 30% HRA ARA - 10.0 12.0 15.0 20.0 of Conduct 87 88 Ensure Conduct Legal Legal Audit No. of Audit compliance Audit Conducted Reports 5 1 1 1 1 1 0 - - PRM HRA with laws and 1.0 1.0 policies Implement Enhanced % Level of presidential compliance Implementation directives, circulars 100% 50% 50% - - - 1 ARA LCA 1.0 1.0 1.0 1.0 and executive orders Strengthen Strengthen quality assurance Number of reports fiduciary Internal auditing function produced assurance and functions in line complying with transparency with International International 5 1 1 1 1 1 1.5 CRS LCA 1.7 2.6 3.1 3.7 best practice best practice and Quality reports Develop and Risk Management % Level of Implement the Framework Implementation Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation risk management developed and 100% 50% 50% - - - 3.5 ARA LCA 3.5 4.6 5.3 6.1 framework implemented Strengthen Internal Audit % adoption and governance Reports Prepared implementation of structure and Audit Committee, Internal Controls recommendations 100% 50% 50% - - - 2 ARA LCA within the entity 2.3 2.6 3.0 3.5 Enhance Prudent utilization Reduction in 100% utilization financial of financial wastage of funds of funds within management in resources approved budget 100% 50% 50% - - - 0 HRA LCA 5.0 6.0 6.0 7.0 the Authority Ensure compliance Financial No. of financial with financial statements statements reporting prepared prepared 5 1 1 1 1 1 0 2 F&A ARA 2.0 2.0 2.0 standards Ensure compliance Goods works and % of reports with the provisions services procured complying to of PPADA and in accordance to PPADA 100% 50% 50% - - - ARA LCA 1.0 1.0 1.0 1.0 1.0 PPADR the PPADA procure and strengthen % of implement procurement/ implementation e-procurement supply chain of e-procurement 100% 50% 50% - - - 5 6 7 8 9 LCA ARA system management system Enhance legal Implementation % of framework to push of compulsory implementation for compulsory framework registration of 100% 50% 50% SC LCA investments to 2.0 2.0 allow KenInvest to generate revenues Preparation of MTEF budget No. of MTEF Annual Budgets proposals budget proposals prepared and prepared and 5 1 1 1 1 1 0 - - LCA PRM submitted to submitted - 1.0 Parent Ministry Streamline Implement a Optimization % of KenInvest's resource allocation Process implementation Strategic Plan: 2023 – 2027 processes and optimization implemented Spearheading Equitable Investment-Led Transformation 100% 50% 50% - - - F&A HRA eliminate waste. process to reduce 1.0 1.0 unnecessary 89 expenses. 90 F&A ICT Improve Implement a Tracking system % of resource system for tracking implemented implementation utilization rates and analyzing through better resource utilization 100% 50% 50% - - - 1.0 1.0 planning and to inform future monitoring. allocation decisions. 300.0 TOTAL 265.9 350.0 390.0 438.9 644.0 TOTAL PER ANNUM 564.9 729.0 809.0 902.9 TOTAL 5-YEAR BUDGET 3,649.8 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation

6.1.2 Annual Workplan and Budget 6.1.3 Performance Contracting The Authority will extract its work plan and For KenInvest to efficiently deliver on its mandate, budget from the Implementation Matrix above a clear performance contract will be prepared in and will cost each activity that feeds into the line with the annual work plan and productivity annual budget. improvement plan. This will also factor in the current Government priorities areas listed earlier in the document, in line with BETA.

6.2 Coordination Framework In comparison with leading IPAs of smaller, similar, and larger economies to Kenya, one of the key factors driving higher Investments is the level of the IPA in the Government; with most of them reporting directly to the Office of the President. This not only helps strengthen the Authority that the IPA holds, but also boosts the budget needed to achieve all the objectives set out for the next 5 years, enforce guidelines that enable it to be the most credible Investment Data Source in the Country, and facilitate speedy automation and digitization of the investor’s journey thus leading to higher FDI volumes in the key target sectors. It is therefore proposed, that KenInvest sits under the National Treasury or directly under the office of the President with oversight of the National Investment Council. To implement the new strategy, the Authority requires a staff increment from the current 60 to 140, which has been arrived at through coordination with the State Corporations Advisory Committee (SCAC). The strategy also aims to address the issue of career stagnation as well as looking into the age distribution of staff members, given that over 40% of the staff members are over 45 years of age. The objective is to ensure that KenInvest becomes an employer of choice, that attracts and retains top talent. The Authority therefore has mapped out key critical functions that need to be incorporated into the new KenInvest Organizational Structure to ensure attainment of the identified targets within the next five years. Strategic Plan: 2023 – 2027 91 Spearheading Equitable Investment-Led Transformation

6.2.1 Institutional Framework The new proposed institutional framework that will support the achievement of the 2023-2027 strategic goals and in line with the identified Key Result Areas is as highlighted in the table below. A more detailed organogram will be generated by at a later stage: BOARD CEO Legal & Investment One Start One Strategy Planning Corporate Regulatory Promotion & Go Centre & Research Services Services Innovation Marketing & Policy Audit Risk & Legal & Re-Investment Planning & HR & Investment Advocacy Assurance Services & Aftercare Research Admnistration Promotion Coordination Communication One Start One Partnership Finance & & Regulatory & Resource Supply Chain Branding & PR Go Centre Accounts Services Mobilization Deal Agency Acceleration & ICT Coordination Structuring SME Regional Development Offices & Innovation Figure 10: KenInvest’s Proposed Organization Structure

6.2.2 Staff Establishment, Skills Set and Competence Development Table 20: Staff Establishment Cadre Approved Optimal Staffing In-Post Variance Establishment (A) Levels (B) (C) D = (B-C) CEO 1 1 1 0 Director 6 6 5 -1 Manager 10 10 7 -3 Principal Officer 15 15 0 -15 Senior Officer 20 20 5 -15 Officer 22 22 19 -3 Senior Assistant 13 13 5 -8 Assistants 10 10 9 -1 Senior Office 6 6 4 -2 Assistant Driver 7 7 6 -1 Table 21: Skills Set and Competence Development 92 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Cadre Skills set Skills Gap Competence Development CEO Bachelors’ Degree, none Professional Qualification Masters, where applicable 15 years’ experience Leadership Course Director Bachelors’ Degree, none Professional Qualification Masters, Leadership course 12 years’ experience Manager Bachelors’ Degree, none Professional Qualification Masters, where applicable 10 years’ experience Management course Principal Officer Bachelors’ Degree, none Professional Qualification Masters, where applicable 8 years’ experience Management course Senior Officer Bachelors’ Degree none Professional Qualification 4 years’ experience where applicable Officer Bachelors’ Degree none Relevant training Senior Assistant Bachelors’ Degree none Relevant training Assistants Diploma none Relevant training 4 years’ experience Senior Office KCSE D plain none Relevant Training Assistant 4 years’ experience Driver KCSE D plain none Relevant Training Occupational Trade Test for Drivers

6.2.3 Leadership Execution of the strategic plan will be managed through strategic theme teams identified based on skill required to execute planned activities as outlined and in line with the cadres provided for in the Human Resource Tools.

6.2.4 Systems and Procedures In pursuing its mandate, the Authority has embraced modern management trends and approaches. A Quality Management System under ISO 9001:2015 has been implemented to guide operations. The System applies to all services offered by the Authority. Standard operating procedures have been defined to support implementation of policies, rules and regulations that govern implementation of strategic initiatives. On an annual basis, a detailed evaluation of the internal control system designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance is done. To achieve enhanced performance, promote innovation and ensure efficiency and effectiveness in implementation of the plan, the Authority will promote fundamental rethinking of business processes aligned to identified strategies. Strategic Plan: 2023 – 2027 93 Spearheading Equitable Investment-Led Transformation

6.3 Risk Management Framework Risks are, in the context of this Strategic Plan implementation, factors which may compromise the successful achievement of strategic objectives. Although this Plan has been prepared having taken into consideration the prevailing internal and external factors, the Authority, is not immune to risks. The Plan has therefore anticipated and identified possible risks and mitigation measures to ensure successful implementation. The Authority will remain proactive throughout the implementation phase in anticipating any emerging eventuality that could impede the attainment of the strategic objectives. a) Strategic Risks: These are b) Operational Risks: c) Financial Risk: categorized as: These are events i) Credit Risk: The risk of i) The risk of choosing and that may hinder loss from a counterparty continuing to follow sub people, processes failing to meet their optimal strategies to and systems from obligations as and when meet objectives. effectively supporting they fall due. ii) The risk of not executing the Authority’s day- ii) Liquidity Risk: The risk of to-day activities. This not being able to meet the chosen strategies also includes, but is cash flow obligations as successfully; and, not limited to, business and when they fall due. iii) Emerging risks as continuity and disaster iii) Market Risk: The risk a result of changes recovery, corporate of gain or loss from in situations and a future movement governance, security, circumstances or in market rates i.e., fraud and Information achievement of strategic foreign exchange risk, Technology risks. objectives. interest rate risk and price risk. d) Technological Risk: The potential negative consequence associated with development, deployment and use of technology. e) Reputational Risk: The potential for negative publicity, public perception or uncontrollable events to have an adverse impact on the Authority’s reputation, thereby affecting its ability to fulfil its mandate. f) Legal, Regulatory and Governance Risk: Exposure to legal penalties, financial forfeiture and material loss when the Authority fails to act in accordance with laws and regulations, internal policies or prescribed best practices and governance standards. The overall risk rating is arrived at by multiplying the impact and likelihood. Impact and likelihood are given equal weighting based on a range of 1 to 5. On the basis of this scale, the risk rating is determined as a combination of impact and likelihood to give a range that determines whether it is a low risk, medium risk or high risk. outlined in the document. 94 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Table 22: Risk Management Framework No. Risks Risk Severity Overall Mitigation Measure(s) Likelihood (L/M/H) Risk Level (L/M/H) (L/M/H) 1 Strategic Risks: H H H • Maintain close relationship with Political government officials and monitor political Instability and developments. regulatory • Comprehensive strategic planning. changes • Focus on the strategic objectives of the Environmental Authority and its contribution to Kenya’s challenges Vision 2030 and other national policies due to global and initiatives climatic • Ensure the Authority is managed changes professionally in all departments and global warming Global economic trends. 2 Operational H H H • Long term strategic planning in developing Risks appropriate strategies • Optimal use of available equipment and infrastructure • Prepare and adhere to procurement plan. • Adherence to the Authority’s service policies and guidelines 3 Financial Risk: H H H • Lobby for more funding from the National Financial risks Treasury and development partners Credit risks • Proposal writing to access funding from National Research Funds and partners Liquidity risks • Avoid financial commitments without Market risks assurance for funding. • Create suitable environment for donor negotiations • Exercise prudent financial management 5 Technological H M M • Develop ICT infrastructure in all centres Risk Enhance human resource capacity on technology • Document processes for managing and controlling changes to ICT systems and data 6 Reputational M H M • Develop strong corporate culture. Risk • Compliance and ethical standards. • Robust risk management frame work 7 Legal, H M M • Adhere to government regulations. Regulatory & • Stay abreast of changes in laws and Governance regulations Risk • Engage competent lawyers to handle suits Strategic Plan: 2023 – 2027 95 Spearheading Equitable Investment-Led Transformation Strategic Plan: 2023 – 2027 CHAPTER RESOURCE 7 REQUIREMENTS AND MOBILIZATION STRATEGIES This chapter provides an overview of the financial requirements, resource mobilization and resource management strategies to realize the implementation of this plan. 96 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation

7.1 Financial Requirements For the plan to be implemented, annual budgets proposals have to be prepared and submitted to The National Treasury and Economic Planning for approval in line with the PFM Act, 2012 requirements. The total financial cost for implementing this plan is estimated at KES 2.67 billion over the next five years as tabulated in the table below: Table 23: Financial Requirements for Implementing the Strategic Plan Cost Item Projected Resource Requirements (KES. Mn) Year 1 Year 2 Year 3 Year 4 Year 5 Total KRA 1: Strengthening the legal and regulatory framework for investment promotion and protection. 50 40 30 20 20 160 KRA 2: Integrated Investment Facilitation and Aftercare Services 150 90 50 30 30 350 KRA 3: Refine and Promote Bankable Investment Opportunities 300 500 700 900 950 3,350 KRA 4: Targeted Investment Promotion and Attraction 200 300 400 500 600 2,000 KRA 5: Research and Policy Advocacy 50 60 70 80 90 350 KRA 6: Transformed Investment Promotion Agency 266 300 350 390 440 1,746 Total 1016 1290 1600 1920 2130 7,956 Table 24: Resource Gaps Financial Estimated Financial Estimated Allocations (KES Variance Year Requirements (KES Mn) Mn) (KES Mn) Year 1 1016.0 266.0 (750.0) Year 2 1290.0 300.0 (990.0) Year 3 1600.0 350.0 (1,250.0) Year 4 1920.0 390.0 (1,530.0) Year 5 2130.0 440.0 (1,690.0) Total 7,956.0 1,746.0 (6,210.0) Resource allocations for the first three (3) years can be guided by the MTEF Budget estimates, while the two (2) outer years can be projected based on allocation trends.

7.2 Resource Mobilization Strategies KenInvest is committed to evaluating and executing resource mobilization strategies aimed at achieving financial sustainability. The Authority will raise funds from both internal and external sources. Internal revenue source will be proceeds from sale of obsolete and unservicable assets. The Authority will also explore opportunities for development partners’ support in some of its initiatives. Strategic Plan: 2023 – 2027 97 Spearheading Equitable Investment-Led Transformation

7.3 Resource Management The Authority will strive to allocate resources to ensure optimal achievement of goals and objectives as envisioned in the strategic plan. The overall expenditure incurred shall be within the approved budget, statutes and guidelines issued by The National Treasury and Economic Planning and other government Ministries Departments and Agencies. To ensure optimum resource management, the Authority will deploy its financial resources in conformity with the Public Finance Management Act, 2012 and Public Procurement and Assets Disposal Act, 2015. The Authority will also enhance cost control measures to ensure efficient utilization of allocated resources while eliminating wastage. June Chepkemei, Managing Director Kenya Investment Authority during investor meeting with Indonesia Trade and Investment Minister 98 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Strategic Plan: 2023 – 2027 CHAPTER MONITORING, 8 EVALUATION AND REPORTING FRAMEWORK A detailed implementation matrix for this strategic plan is attached as Appendix 1. Implementation of the plan will be spearheaded and coordinated by KenInvest Budget and Planning Committee. This chapter provides a monitoring and evaluation plan for the strategic plan’s implementation. Strategic Plan: 2023 – 2027 99 Spearheading Equitable Investment-Led Transformation

8.1 Monitoring Framework The table below details the Monitoring and Evaluation Mechanism Table 25: Monitoring and Evaluation Mechanism Target Type of Report Purpose Frequency By Parent Ministry Annual The annual performance Annually Managing Director and Performance Performance contract report Contracting Office Contract provides the status of negotiation achievements attained by and evaluation the institution annually report against negotiated targets. Quarterly The quarterly reviews/ Quarterly Managing Director performance reports will be used contract report to track progress and establish whether implementation is on course in terms of activities, timeframe and outputs. Board of Directors Quarterly The quarterly reviews/ Quarterly Budget & Planning Performance reports outline quarterly Committee Reports achievements of the institution as per targets. Semi Annual Provides mid-year Twice a Internal Auditor Audit Reports assessment of the year Strategic Plan’s implementation to check whether it is on course. Annual Detailed annual Annual Budget & Planning Performance achievements of the Committee Reports institution vis-à-vis the implementation plan, Managing Director outlining the targets met, challenges and recommendations for the subsequent programs/ plan cycle. Annual State Based on an annual state Annual Budget & Planning of Investment of investment survey, Committee Forum the forum will bring stakeholders together Managing Director to consider whether investment targets and contribution into the BETA and Kenya’s Vision 2030 are being achieved. 100 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Independent To assess progress Financial Consultant mid-term of the strategic plan Year review report implementation, lessons Managing Director and challenges, whether the desired outcomes are being achieved, and recommend any changes. Chief Excutive Monthly work To provide the progress Monthly Director Officer plan reviews made in meeting the set activities in the work plan, highlighting the timelines met, challenges and possible interventions. Director Monthly These will provide Monthly Manager progress information with regard reports (All to various departmental departments activities undertaken in consolidated the month as per the for the CEO) work plan and everyday investor and stakeholder interactions e.g. tracking reports, workshop reports, policy status reports, investor inquiry reports. Staff Weekly work Regular status reports Weekly Officer plan reviews by officers on the (consolidated progress of the activities for Director) under each unit to give feedback on the progress being made towards achieving the work plan goals and objectives and revise where applicable Institutional Information to staff Monthly CEO / FA & HR information on the status of the institution, achievements and expectations including Human Resource Management. Investors Investment Regular reports from Quarterly Director related reports/ meetings, conferences publications forums, after care reports, advocacy reports, etc. Strategic Plan: 2023 – 2027 101 Spearheading Equitable Investment-Led Transformation Relevant government Performance To disseminate Annually, Director institutions and the contract report information on KenInvest quarterly wider stakeholder Annual state activities, achievements, and regular community of investment and recommendations. website reports The reports focus on updates. Journals, investment generation, newsletters, investment climate, and conference institutional analysis reports, website and achievements and postings aspirations.

8.2 Performance Standards The strategic plan will be implemented through annual work plans prepared as per balanced scorecard approach (BSC), and performance contracts negotiated and signed with the parent ministry and National Treasury. These will cascade into departmental, team and individual staff annual performance contracts. This will be complemented with consultancy services and technical support by KenInvest partners. Monitoring and Evaluation of implementation will entail the following: 1. Monthly progress review meetings at the departmental level 2. Quarterly progress review retreats at the institutional level 3. Quarterly progress reports for the annual work plans and performance contracts 4. Internal Audit Reports every 6 months 5. Annual Performance Reports 6. Independent mid-term review in early 2025-26 FY These are elaborated in more detail in Table 7 that sets out the M&E mechanism.

8.3 Evaluation Framework The strategic plan will be implemented through annual work plans prepared as per balanced scorecard approach (BSC), and performance contracts negotiated and signed with the parent ministry and National Treasury. These will cascade into departmental, team and individual staff annual performance contracts. This will be complemented with consultancy services and technical support by KenInvest partners. Table 26: Outcome Performance Matrix Strategic Outcome Outcome Indicator Baseline Target Objective Value Year Mid- End- Term Term Period Period SO1: To An enabling legal 2022 100% 100% strengthen and regulatory the legal and framework for % of implementation regulatory investments framework implemented 102 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation Evidence-backed 2022 14 24 No. of proposals on recommendations investments submitted during landscape and budget/law making ecosystem to drive processes policy advocacy Up to day Investment 2022 3 5 No. of reviews laws and Regulations Majority of 2022 39 69 SO2: To government agencies No. of agencies inte Implement enrolled in PASHA grated in PASHA investment for smooth investor promotion process and facilitation 100% of investments 2022 75% 100% % of investments framework being tracked by tracked by KenInvest KenInvest SO3: To Increase Bankable Investment No. of Bankable 2022 150 100 visibility and Opportunities Investment awareness identified and Opportunity reports of bankable promoted prepared investment Investment Grade 2022 30 50 Value of Investments opportunities in Projects packaged 8.3 in KES Billions Kenya and promoted SO4: To At least 100 SMEs No. of SMEs 2022 180 200 enhance targeted facilitated annually supported investment Up to KES 1 Trillion 2022 600 1,000 Value of Investments promotion, in investments by in KES Billions attraction and 2027 retention efforts to 2022 30 50 attract a diverse Up to KES 50 Billion Value of Investments range of local in DDI by 2027 in KES Billions and international investors SO5: To Database for 2022 3 5 Existence of Collect, Collate investment-ready Database and Conduct project profiles comprehensive 100% of data and 2022 100% 100% research and research collected % of data data analysis and disseminated disseminated on investment through the through data portal environment KenInvest data portal SO6: To Build % of implementation 2022 100% 100% New organizational a globally of new structure developed competitive organizational and implemented Investment structure promotion Recategorizing of % progress in 2022 100% 100% agency KenInvest to attract recategorization of and retain talent KenInvest Strategic Plan: 2023 – 2027 103 Spearheading Equitable Investment-Led Transformation

8.3.1 Mid Term Evaluation 8.3.1 End-Term Evaluation KenInvest will perform its Mid-Term Evaluation in At the end of the strategic period, KenInvest year 3 with an aim to achieve the target set in the will perform its End-Term Evaluation and Outcome Performance Matrix above. benchmark its performance against the ones set in the Outcome Performance Matrix above.

8.4 Reporting Framework and Feedback Mechanism Table 8.2: Quarterly Progress Reporting Template (Specify name of MDAC, Constitutional Commission, and Independent Office) QUARTERLY PROGRESS REPORT QUARTER ENDING ………….. Table 27: Quarterly Progress Reporting Template Expected Output Annual Quarter for Year …… Cumulative to Date Remarks Corrective Output Indicator Target Target Actual Variance Target Actual Variance Intervention (A) (B) (C) (C-B) (E) (F) (F-E) (Specify name of MDAC, Constitutional Commission, and Independent Office) ANNUAL PROGRESS REPORT YEAR ENDING ………….. Table 28: Annual Progress Reporting Template Expected Output Achievement for Cumulative to Date Remarks Corrective Output Indicator Year……. (Years) Intervention Target Actual Variance Target Actual Variance (A) (B) (B - C) (D) (E) (E - D) Table 29: Evaluation Reporting Template Key Outcome Outcome Baseline Mid-Term Evaluation End of Plan Period Remarks Corrective Result Indicator Evaluation Intervention Area Value Year Target Achievement Target Achievement KRA 1 KRA 2 KRA 3 104 Strategic Plan: 2023 – 2027 Spearheading Equitable Investment-Led Transformation "One Start, One Go Service" InvestmentKenya KenInvest Kenya Investment Authority InvestKenya Old Mutual Tower, 14th & 15th Floor, Upper Hill Road. P.O. Box 55704 - 00200 City Square, Nairobi, KenyaT: +254 (730) 104-200 E: info@invest.go.ke