Kenya

In a move to tap into its vast geothermal energy resources, Kenya recently invited bids for the construction of two new power plants, representing another step forward in its 2017 target to boost electricity production by 5000MW.

Setting a new record for a maiden sovereign issuance in Africa, Kenya successfully tapped the Eurobond markets for the first time in June, selling $2bn worth at better-than-expected rates.

Devolution in Kenya is still in its early stages, and there have been growing pains with complications relating to funding and concerns over governance, but a spate of new initiatives is looking to increase momentum at the county level on both industrial and social development indicators.

The Nairobi Securities Exchange (NSE) is set to demutualise in the coming months and sell equity in an initial public offering, an important step in Kenya’s plan to grow its financial sector. The move sets the stage for the next steps of its capital markets master plan, which will introduce new alternative instruments, including derivatives, futures, and real estate investment trusts (REITS) in years to come.

Kenya’s government is currently considering the final iteration of a bill that would establish three special economic zones (SEZs) within the country. The SEZs will allow lower levels of taxation and fewer regulatory hurdles, and will focus primarily on industrial activity, in particular textile production. The SEZ bill is part of a broader initiative to boost the manufacturing sector, diversify the country’s exports and encourage the creation of up to 1m industrial jobs annually.

Kenya’s transport networks are expected to see a number of significant upgrades in the coming years as a spate of multibillion dollar projects break ground, with the private sector’s involvement set to expand following the passage in 2013 of the Public-Private Partnership (PPP) Act.