Foreign Direct Investments to Kenya have slowed because of the current political climate, immigration law firm Fragomen has said.
The tension is being heightened by increasing campaigns as the country prepares for August 8 general election, causing jitters among expatriates, who are reluctant to renew their work permits.
Speaking to the Star in an interview, Fragomen practice leader George Mucee said investors are stalling development projects.
“Every work permit we process lasts two years and 90 per cent of our clients renew their permits after they expire, but this year most of those whose permits are expiring, are opting not to renew, while others are opting to relocate to other countries such as Ghana, Nigeria and South Africa,” he said.
Mucee attributed the slowdown in the foreign industry to nervousness linked with the outcome of the elections.
“Unless a regime is so anti-business, you will actually never see any company pushing its support for any candidate when it comes to an election period, most companies only support continuity,” Mucee said.
Britain’s decision to leave the European Union following June 23 referendum vote, the Brexit, and uncertainties over the direction of US policies under the new government of President Donald Trump are seen as likely to affect the country’s growth.
According to Fragomen senior manager David Makau, immigration sanctions imposed by the Trump presidency might hit Kenya’s economy.
He says Kenyans residing in the US might rethink their investment plans. This will reduce Diaspora remittance to Kenya, a major contributor to the country’s economic growth.
“Europe and United States have been a safe haven to a lot of people who in Kenya would have remained jobless due to limited opportunities,” Makau said.
“Brexit was propelled by European Union policy which allowed immigrants to get access to all countries within the EU once he had access to one country within the union,”
Makau said Kenyans will now have to grapple with strict visa regimes. Kenya relies on the US and the UK tourists.