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A stable and expanding energy supply is central to Kenya’s ambition to establish itself as an industrialised middle-income country, as set out in its Vision 2030 development strategy. The nation is fortunate in its energy mix: hydro, geothermal, solar and wind energy already play a significant role in power generation, and – particularly in the case of geothermal – there is room for further expansion. Recent oil finds in the South Lokichar Basin may soon feed into the segment and establish Kenya as a hydrocarbons exporter for the first time. For the private sector, the promulgation of the new Energy Bill and Mining Act promise to open up these closely related sectors to increased domestic and foreign investment. If fully implemented, the legislation can be expected to provide the necessary framework to support investment and the expansion of both sectors. This chapter contains interviews with John Munyes, Cabinet Secretary, Ministry of Petroleum and Mining; and Johnson Ole Nchoe, Managing Director and CEO, Geothermal Development Company.

After a challenging 2017, the industrial sector has started to show signs of recovery and is expected to perform well in the coming years, as several government initiatives and programmes focus on boosting the manufacturing sector and its contribution to Kenya’s economy. Although official efforts are already under way, implementation of policies concerned with raising local output and lowering production costs could help Kenya on its path to becoming the industrial hub of East Africa. As for the retail sector, with the economy strengthening, foreign investors entering the local retail market and the middle class continuing to grow, prospects remain positive. Conversely, companies that weathered these difficulties are in good shape and, in fact, benefitting from the rebound. This chapter contains interviews with Peter Munya, Cabinet Secretary, Ministry of Industry, Trade and Cooperatives; and Ahmed Rady, General Manager, East Africa Coca-Cola.

With its large population, diverse economy and an insurance penetration rate of less than 3% of GDP in the first quarter of 2018, compared to a global average of more than 6%, Kenya holds significant promise as an insurance arena. Recent years have seen the government and the industry regulator attempt to realise this potential by developing a micro-insurance framework, increased training for insurance agents and the promotion of technology in transacting insurance business. In the shorter term solid growth forecasts for the Kenyan economy bode well for the prospects of continued premium growth in the sector. This chapter contains an interview with Godfrey K Kiptum, Commissioner of Insurance; and CEO, Insurance Regulatory Authority.

The market entered 2018 on the back of strong performance the previous year, in which the main index followed a broadly positive trajectory that continued into the first quarter. Though the markets saw some fluctuation over the following months, continuing legislative support and positive sector developments suggest a resilience going forward. At the same time, continuing regulatory support and a project pipeline that includes the continued launch of financial derivatives for equities, bonds and currencies, as well as the expansion of commodity derivatives, ensure the market will remain a driver in the region. This chapter contains interviews with Geoffrey Odundo, CEO, Nairobi Securities Exchange; and Geoffrey Gangla, CEO, Genghis Capital.

As the full-year results for 2017 began to emerge, the effects of a new cap on lending interest rates become apparent, with most banks reporting reduced margins and profitability. A tighter lending environment, however, has encouraged banks to find alternative routes to revenue. Technological innovation, in particular, has received a fresh impetus as lenders reach out to prospective customers through new channels, such as mobile banking. However, despite the challenges of 2017, solid fundamentals point to continued positive performance in 2018. Increases in net assets and deposits, consolidation and the continued streamlining and digitisation of bank services have contributed to sector resilience. This chapter contains interviews with Patrick Ngugi Njoroge, Governor, Central Bank of Kenya; Joshua Oigara, CEO and Managing Director, KCB Group; Jeremy Awori, CEO, Barclays Kenya; and Kenneth Kaniu, CEO, Britam Asset Managers.

After the costly drought and political uncertainty of 2017, the Kenyan economy appears to have stabilised on an upward trajectory in 2018, with most forecasts seeing a more robust expansion of economic activity. Indeed, Kenya’s diverse economy forms a solid platform from which the government can generate economic growth over the coming years. The resolution of the electoral process, improving business confidence and strong private consumption are likely to support GDP expansion over 2018 and into 2019. However, a structural fiscal deficit and an increasing public debt continue to pose significant challenges. Consequently, a sense of urgency surrounds the process of economic reform by which Kenya hopes to establish itself as a globally competitive, prosperous nation by 2030. This chapter contains interviews with Anne Kirima-Muchoki, Chairperson, Kenya Investment Authority; Carole Kariuki, CEO, Kenya Private Sector Alliance; and Ray W Washburne, President and CEO, Overseas Private Investment Corporation.