Nairobi — Kenya remains an attractive centre for the distribution of computing products but the general business regulatory environment poses key barriers for prospective large-scale manufacturing concerns.

Computer products manufacturer Hewlett-Packard (HP), one of the foreign multinationals using Kenya as a regional hub, says plans to set up a local computer assembly plant on the Kenyan soil look oblique owing to the poor investment environment, coupled with the policy environment.

Kenya has over the years put in place deliberate policies to lower the cost of computer accessories by removing taxes on imported computer equipment.

HP East Africa Managing Director Kennedy Mbwaya said although the company had considered setting up a local computer assembly plant in Kenya, prospects were remote because of logistical challenges in Kenya.

"The local assembly of computers requires efficiency. Kenya is not logistically competitive," Mbwaya told journalists in Nairobi after announcing the firm's regional business expansion plans. The firm has been harboring plans of diversifying its distribution networks across the East Africa region. The computer software maker has also rolled out new printing machines targeting widespread distribution opportunities.

Mbwaya said even though it would be possible to bring in manufactured components into Kenya for assembly, chances of doing it effectively would depend on the efficiency levels, which means the transport network needs to be superior. But congestion at the Port of Mombasa and clearance bottlenecks that bog down investors in almost every sector of the economy also acts as a discouragement for new investors.