KEPSA and IFC plan joint reforms to unlock investment in Kenya, boost jobs, SMEs, SEZs and align with AfCFTA & Vision 2030.
KEPSA and IFC Unveil Bold Investment Reform Plan for Kenya
Nairobi, April 4, 2025 – The Kenya Private Sector Alliance (KEPSA) and the International Finance Corporation (IFC) have jointly announced a transformative investment roadmap aimed at unlocking Kenya’s full economic potential. The move comes amid rising global financial uncertainty and a realignment of trade networks under the African Continental Free Trade Area (AfCFTA).
A Joint Taskforce to Drive Economic Reforms
At the center of this plan is the proposal to revive a reform-oriented taskforce—similar to the defunct Ease of Doing Business Taskforce—to coordinate sector-specific reforms.
“We aim to move beyond dialogue to implementable reforms,” said KEPSA CEO Carole Kariuki. “This will be a platform for identifying barriers and unlocking investment sector by sector.”
Given that Kenya’s private sector contributes over 80% of GDP and supports 90% of employment, the reforms are positioned as a crucial pillar for sustained growth. Read more about Kenya’s private sector contribution to GDP.
Data-Led Capital Flow Insights
To further enhance Kenya’s attractiveness to investors, KEPSA and IFC will begin publishing bi-monthly investment bulletins on capital flows and investor trends. These will provide actionable market intelligence and serve as a dashboard for high-opportunity sectors:
- Agribusiness in Kenya
- Renewable energy development
- Digital economy and innovation
- Logistics and infrastructure
- Fintech and financial inclusion
“Kenya has unique tariff and trade advantages under AfCFTA,” noted IFC’s Gillian Rodgers. “Our goal is to convert those advantages into bankable, job-creating projects.”
Rethinking Special Economic Zones (SEZs)
Despite the establishment of Kenya’s SEZ Act in 2015, most zones have underperformed. The IFC-KEPSA plan proposes evolving SEZs from isolated industrial parks into fully integrated economic ecosystems with:
- Upgraded infrastructure
- Transparent and responsive governance
- Stronger linkages to both local suppliers and global value chains
This strategic shift aligns with the goals of Kenya Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA).
Sector-Focused Stakeholder Forums
KEPSA and IFC will co-host sector-specific investment forums in partnership with KenInvest, focusing on:
- Agriculture and agro-processing
- Public-Private Partnerships (PPPs)
- E-mobility and green economy
- Investment policy reforms
These engagements will offer private sector players a chance to shape national investment priorities.
Boosting Jobs and SME Transformation
The two institutions also reaffirmed their commitment to the Kenya Jobs and Economic Transformation (KJET) initiative. KJET targets:
- SME capacity building
- Industrial value chain upgrades
- High-impact employment creation
“We’re not just talking about investment,” Kariuki reiterated. “We’re focused on investment that creates real jobs, uplifts SMEs, and supports inclusive economic growth.”
A Competitive Regional Investment Landscape
With Rwanda’s rapid reforms and Ethiopia’s capital liberalization drive, Kenya must act decisively. The KEPSA-IFC partnership signals a data-led, long-term strategy rather than one-off deals.
A working group is expected to be established by June 2025, with the first investor roundtable scheduled for Q2 2025.
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