Kenya has nearly quadrupled its foreign direct investment in two years to be number 4 in Africa.
So more profits going to foreign countries?
If foreign firms invest $2 billion in Kenya a year. Then its only fair that they can have their profit back to use as they wish. After all they have risked in investing, building, employing many, paid taxes and grown the economy.
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Look at it from a glass half full point of view. The investors bought local stuff, created employment, paid taxes and maybe have sponsees. :D:D
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So foreign firms will only employ foreigners?
So FDI will not lead to job creation and growth of the middle class?
So FDI will bot get more people out of poverty?
Smh…am guessing you no nothing Economics eh. People like you have been so blinded by pessimism that it clouds your judgement on all issues.
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If they invest $2B for an IRR of 0.25, they are taking away a proper $500m per year!! Whay can’t we have local guys starting consortium/hedge funds to get these funds invested by FDI so that more local guys benefit?
Hehe Sponsees.
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FDI guys prefer coming with their own staff. Check Africa Oil figures. Compare what expat engineers earn and local guys earn. My concern is more of the equal opportunity. Do we have solid structures to govern how much they reap?
People like you would rather sit happy as your children’s generation is looted out of their birth right. Thank you for your expert insight on pessimism that governs people like us and clouds all aspects of our lives.
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The case of Karuturi flowers comes to mind.
Yes, they have employed several '000 peasants 9at the bare minimum wage) but they always cook their books to post a loss, meaning no taxes paid to the government. And mark you the company is using kenyan soil, water, roads, air and electricity, na wanatuacha tukikaukanga.
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and ate local chapos and slices…
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because you who have an idea need to start talking to us in english or oswahili instead of codes…
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Nonsense, FDI firms might bring 2 or 3 senior people but most of the hires are local people. Besides, would you rather have no investiment than have FDI. FYI kenya is a capitalist economy and nobody or nothing is stopping you or any other local firm from making massive investments. You would be deluded and in denial to think that foreign on investors have no role to play in the growth of the kenyan economy. your persistent argument only works to prove just how your outlook on life is pessimistic
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Thank you so much. What if! We should! They are! etc. I would rather have one doer than a hundred “we will” Whatever is invested here circulates from suppliers and consumers and that is what grows the economy. Yes 3-10 people will earn a lot but where would the 1000’s who earn even the minimum be getting their wages from. Besides last time I checked COTU is on everyone case to pay more than gov set minimum wage. At the end I product is produced for local and foreign expansion.
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Yes we are doing well attracting foreign investment, terrific.
The next front is getting kenyans to invest in manufacturing and agriculture big time, as things stand we don’t even have serious construction companies. Imagine having more Bidcos and Kenchics owned by Kenyans?
We need to make it possible, from opening up more polytechnics, facilitating financing for local start-ups, availing technical assistance for local companies and generally making it possible to thrive in these new waters.
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Not all FDI’s are good for you. Some simply suck your blood and leave you empty. When looking at employment, it is not enough to gauge it by the number of jobs created but rather the quality of jobs created. If the employees cannot feed themselves, then that FDI belongs to satan.
If Kenyans are left right and center buying their credentials what do you expect. In Uganda, Kenyan companies have Kenyan CEOs and Managers and the foot soldiers are locals coz those nig**** are not at par with us when it comes to skills and work ethic etc.
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whichever way you look at it, the positives of FDI far outweigh the shortcomings you cite. Afterall its not like local muhindi firms in industrial area are renowned for their handsome pay. Besides there several factors that dictate the wages paid, key among them the level of education/technical know how and the prevailing labour demand vs supply conditions. FDI cannot be shuned solely on the basis of unsubstantiated claims of poor pay.
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shida ya kua kiherehere only reply to stuff you understand zingine wache experts
Every foreign Flower, tea and coffee company in Kenya cooks their books. They export to themselves at break even then to the final customer from a tax haven. This country loses so much. Yet KRA is only after small fish - my grandmother’s rental income.
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