Kenya Draws a Record Sh414 Billion in Foreign Investment. Why Global Investors Are Choosing Kenya Over Other Economies.

Kenya attracted a record $3.2 billion, about Sh414 billion, in foreign direct investment in 2025, marking its strongest annual performance as global investors increased bets on the country’s digital economy, clean energy, financial services and manufacturing.

Figures from the United Nations Conference on Trade and Development’s World Investment Report 2026 show Kenya’s FDI inflows rose to $3.2 billion in 2025, from $2.3 billion in 2024 and $1.5 billion in 2022, meaning foreign investment has more than doubled in three years. The growth came despite a difficult global environment marked by geopolitical tensions, high financing costs and slower growth in many markets. Globally, FDI rose by 6% to $1.6 trillion in 2025, but Africa’s inflows fell to $69.5 billion, about Sh8.98 trillion, from an exceptional $94.3 billion, about Sh12.19 trillion, in 2024.

UNCTAD said Africa’s 2025 figure was still the continent’s third highest FDI performance in 25 years after excluding one off mega projects. Even so, Kenya’s record inflows stood out as global capital became more selective and concentrated in countries able to support large, strategic and technology intensive projects.

President William Ruto said the latest numbers show rising confidence in Kenya’s economy and reform agenda. “The latest United Nations Conference on Trade and Development’s World Investment Report 2026 confirms what Kenyans are building: an economy the world believes in,” the President said. He added that Kenya’s positive outlook is supported by a stable shilling, a stronger stock market and reforms, including the government’s privatisation agenda, which he said is opening new opportunities for private capital.

Kenya’s performance also strengthened its position in East Africa. Investment flows into the region rose 12.1% to $14.6 billion in 2025, with Kenya accounting for more than half of the increase. Its share of regional FDI rose to 21.9% from 17.9% in 2024. UNCTAD linked part of Kenya’s appeal to reforms under the Nairobi International Financial Centre, including lower corporate tax rates and dividend tax exemptions for qualifying companies. It also pointed to Kenya’s renewable heavy electricity system, where nearly 90 percent of power generation comes from renewable sources led by geothermal energy.

That clean energy advantage is already helping attract digital infrastructure investment. UNCTAD says Kenya has secured a $1 billion investment package that includes a geothermal powered data centre, highlighting how renewable energy is becoming a competitive investment advantage as global technology firms look for reliable and low carbon power.

That clean energy advantage is helping attract digital infrastructure investment, including data centres, cloud services and technology projects. However, sustaining the momentum will depend on policy consistency, lower business costs, infrastructure development and ensuring investment translates into jobs, technology transfer and long-term industrial growth.