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KENYA DOMINATES EAC CROSS BOADER INVESTMENT
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Kenya's investments in Uganda and Tanzania have risen by over 40% over the last three years. A report prepared by the Arusha-based Directorate of Trade indicates that the number of investment projects by the locals has climbed from 37 recorded in 2004 to 53 in 2005.
The value of investments over the same period also rose by $28 million (Sh2 billion) to stand at $64 million (Sh4.5 billion). |
The report indicates that investment inflow from the two countries declined by over 50%, with Tanzania having no project in the country. Only two projects, both from Uganda, were implemented in 2005 compared to three the previous year.
The value of the investments also dropped from Sh350 million to a low Sh70 million over the same period. "In Kenya, investments from partner states are mainly in the manufacturing, tourism and transport sectors," says Dr. Flora Musonda, East African Community director for trade and customs.
But Musonda also said that while Kenya experienced a decline in foreign direct investment (FDI), both Uganda and Tanzania experienced an upsurge. FDI inflows into Kenya declined from 64 projects worth Sh3.2 billion in 2004, to 52 projects worth Sh3.4 billion.
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