Kenyan-based American companies have created employment opportunities to 6,000 Kenyans in the last 10 years, according to a new report.
During the period, 85 American companies channeled over Sh300 billion in foreign direct investment (FDI) to Kenya and hired 5,964 more Kenyans, the report released by the US Embassy in Nairobi indicates.
The report compiled by AidData, a research lab at William and Mary’s Global Research Institute, states that US entities are increasingly viewing Kenya as a prime investment destination.
“US companies increasingly see Kenya as a destination for investment: they are building new facilities, expanding existing operations, and creating manufacturing jobs in line with Kenya’s goals of modernizing its economy that is predominantly occupied by domestic workers,” the report notes.
“Since 2010, 85 American companies have invested an estimated total of Sh311.78 billion in Kenya through greenfield investments and acquiring physical assets (as opposed to mergers and acquisitions or leasing of existing facilities).”
The top 10 American companies that invested heavily in Kenya in the period under review are Cummins (Sh48.95 billion), Dupre Investments (Sh42.35 billion), General Electrics (Sh38.20 billion), Coca-Cola (Sh25.86 billion), and IBM (Sh13.51 billion).
Others are Ormat Technologies (Sh11.07 billion), Alternate Systems (Sh7.77 billion), Mars (Sh6.92 billion), Mastercard (Sh6.597 billion), and Microsoft (Sh5.85 billion).
61 percent of American FDIs went to the health sector followed by social development (17 percent), crisis and conflicts (8.7 percent), agriculture and food security (6.1 percent), and education (1.7 percent).
The largest US donors to Kenya are Arcus Foundation, the Bill and Melinda Gates Foundation, the Conrad N. Hilton Foundation, the David & Lucile Packard Foundation, and the Ford Foundation, the report says.