DRC now Kenya’s top investor from EAC - report

The Democratic Republic of Congo is now the leading investor in Kenya from the East Africa Community, according to the latest data from the Central Bank of Kenya.

Out of the 7.9 per cent share of foreign liabilities from the region, DRC accounted for 6.2 per cent amounting to Sh127.3 billion in the year ending 2022.

It surpassed the foreign direct investments and other portfolio investments from Uganda, the immediate former leader who held Sh15.4 billion in the period under review.

Rwanda, Tanzania and the other EAC states held a share of Sh10.9 billion, Sh8.1 billion and Sh1.4 billion, respectively.

The apex bank attributes the shift in the stock of foreign liabilities from the EAC bloc, to the entry of DRC into the bloc in April 2022.

"The entry of DRC to the EAC caused the shift in the stock of foreign liabilities from the EAC bloc, pushing the bloc's total share from Sh32.9 billion at the end of 2021 to Sh163.2 billion at the end of 2022," reads the 2023 Foreign Investment Survey report.

"This is largely attributed to other investment portfolios such as loans and currency reserves."

Globally, Africa remained the second largest source of foreign liabilities across the reference period, contributing 29.1 per cent of the total stock of foreign liabilities at the end of 2022.

South Africa remained the leading source of investment from Africa, accounting for 37.5 per cent of the total stock of liabilities from Africa over the reference period, with the value of investments from this source increasing from Sh199.0 billion at the end of 2020 to Sh233.8 billion at the end of 2022.

Europe accounted for the largest share of foreign liabilities to Kenya at 38.8, 35.5 and 37.1 per cent at the end of 2020, 2021 and 2022, respectively.

The stock of foreign liabilities from Europe was primarily attributable to the United Kingdom, which contributed 47.2, 49.1 and 47.2 per cent of the total stock of liabilities at the end of 2020, 2021 and 2022, respectively.

Other European countries which contributed significantly to the stock of foreign liabilities were the Netherlands, France, Switzerland, and Jersey, whose stock of liabilities jointly stood at Sh336.3 billion at the end of 2022 from Sh297.8 billion at the end of 2020.

Within the period under review, investments from Asia exhibited a notable growth of 17.6 per cent from Sh225.9 billion at the end of 2020 to Sh265.7 billion at the end of 2022.

Stock of liabilities from America increased by 28.9 per cent from Sh92.5 billion at the end of 2020 to Sh119.2 billion at the end of 2022.

The increase was majorly due to a 24.5 per cent increase in investment from the States from Sh71.1 billion at the end of 2020 to Sh90.0 billion at the end of 2022.