While President William Ruto has been on a charm offensive to woo investors from the West and in particular those from the United States, local companies have been suffering from an unfavourable business ecosystem.
In just a year, President William Ruto has been able to convince over 5 giant American multinationals to set up shop in Kenya.
Over the same period of time, over six multimillion companies have closed shop, reduced the number of workers or declared a profit warning.
In an earlier interview with Kenyans.co.ke, Dr Brian Mutie explained that President William Ruto performed well on a global stage compared to the national stage.
"President Ruto is performing well at the meta-governance level - at the global level. The country’s rating is performing well at that level and has been touted as one of the most progressive economies,” Mutie explained then.
In November 2023, Billionaire Bundotich Buzeki announced that he was scaling down operations of his logistics company due to the high cost of fuel that had hampered profits.
“We sent 300 staff parking. We still have some employed. Things are tough and this is the truth,” Buzeki updated the Kenyans on January 13.
Buzeki is not the only investor who has been forced to make a tough call. It is reported that a popular hospital in Kenya has been scaling down and sending staff home due to unfavourable policies and operating conditions.
In the last year, Unga Group and Limuru Tea PLC declared a profit warning citing high operational costs and shilling depreciation against the dollar.
Further, on February 1, it was reported that a multimillion-shilling manufacturing company specialising in homecare products had decided to retrench its staff due to the tough business environment and rising inflation levels.
This happened a week after a top maize milling plant based in Nairobi announced that it was closing shop and selling all its property for Ksh400 million.
While local companies are struggling to break even, US multinationals have seen Kenya as a favourable market to relocate or set up a regional branch.
On November 16, 2022, after a visit to Kenya, Microsoft founder Bill Gates announced that his Foundation would set up regional headquarters in Nairobi to handle issues of Health, Agriculture and ICT.
This was after a successful meeting with President William Ruto at State House, Nairobi.
Four months after Bill Gates made the promise to Ruto, another multinational, J.P Morgan announced it was opening a regional office in Kenya.
President William Ruto termed the move by the American multinational financial services firm as bold.
“The bold decision taken by J.P. Morgan to set up a regional office in Nairobi is a vote for Kenya’s emerging success in the global marketplace,” he stated then.
In October 2023, Kenya made another investment score after US-based company, Talus Renewables, announced the setting up of the world's first modular green ammonia fertiliser plant in Kenya.
Human Biosciences in further affirmation of Kenya as a top destination for foreign investors announced in December 2023, that it would set up a plant for the production of Collagen products in Kenya.
The giant pharmaceutical company revealed that the products would be used in hospitals for the treatment of wounds.
In the first international deal for 2024, President William Ruto announced on January 31, that American tech giant, Oracle Corporation would set up a centre in Nairobi.
Ruto while applauding the move remarked that it was key to the digital transformation of government, public institutions, businesses and start-ups in Kenya.
Dr Brian Mutie in his interview with Kenyans.co.ke noted that Ruto needs to find a way to match his global success locally.
