German firm Bayer is cutting back in Kenya, handing off major tasks.
This follows UKs GlaxoSmithKline and foreshadows Procter - Gambles future departure.Rising taxes, a weak shilling, and high energy costs are driving companies out.The Kenya Association of Manufacturers predicts more exits, pointing to growing financial pressures.Loan defaults in manufacturing have hit $833 million by September 2023.Such pullouts may hike unemployment and dampen Kenyas economy.
Calls grow for tax policy reforms to boost business competitiveness.The government plans to lift the manufacturing sector, targeting a GDP boost by 2027 with new industrial parks.Multinationals Exit Kenya.
(Photo Internet reproduction)This trend mirrors challenges across Sub-Saharan Africa.
Economic woes and policy barriers repel foreign investment.These retreats prompt calls for policy reevaluation to energize local markets.
Asian successes offer a contrast, where stable policies and incentives draw foreign firms.This shows the value of a welcoming business environment.Africa must adapt to remain attractive to global investors.
Kenyas experience highlights the delicate balance between tax revenue and investment appeal.The continents future as an investment hub depends on policy reform and collaboration to tackle barriers to business and economic growth.