Oburu denies loss of foreign investors

The Treasury has denied claims that Kenya is losing a lot of foreign investors to neighbouring countries due to red tape and corruption.

Assistant minister Oburu Oginga said major steps had been taken to create an investment-friendly environment and that efforts to market the country as an investor destination had been maintained.

In addition, he said, business registration had been simplified. MPs, however, disputed this, arguing that foreign investment had declined due to corruption.

Kilgoris MP Gideon Konchella (PNU) said the situation was worrying. “There is no hope for foreign investors in this country because of corruption and there are no clear efforts by the government to reverse this situation,” he said.

Those frustrated in their efforts to register businesses, he added, did not know where to seek help due to red tape.

Gwassi MP John Mbadi (ODM) said the implementation of business-friendly reforms was key to creating a sustainable investment-friendly environment.

Lamu West MP Fahim Twaha said there was discrimination against local investors and asked why they were not given equal treatment with foreigners.

Kisumu Town East MP Shakeel Shabbir (ODM) demanded a list of foreign investors since last year to enable Parliament see whether there had been an increase or decrease in investment.

Responding to the members’ concerns, Dr Oginga said the government was well on track in the implementation of reforms to promote business growth through investment. He said he would provide a list of investors if it was requested officially by way of a question.

Unnecessary

The matter came to the floor by way of a question from Saboti MP Eugene Wamalwa (PNU), who said Kenya was losing foreigners to neighbouring countries such as Uganda and Rwanda due to graft in government and unnecessary procedures.

He asked the Finance minister to explain measures he was taking to streamline foreign investment by establishing an effective one-stop shop for foreign investors.

Dr Oburu said such a shop has been set up at the port of Mombasa and the government was working to establish more.

Reports by Alphonce Shiundu and Caroline Wafula