Kenya: FDI Growth Drives Up Locally-Owned Foreign Assets By Sh313mn

18 July 2024
Capital FM (Nairobi)
By Ken Muthomi

Nairobi — The country's stock of foreign liabilities skyrocketed by Sh313.6 million between the years 2020 and 2022 due to the increase in foreign direct investment (FDI).

According to a Foreign Investment Survey conducted by the Central Bank of Kenya (CBK), the Kenya National Bureau of Statistics (KNBS), and the Kenya Investment Authority, the stock foreign liabilities between the three years increased from Sh1.75 trillion to Sh2.06 trillion, which accounted for 17.9 percent increase.

Stock foreign liabilities are the total amount of financial obligations a country has to foreign entities at a specific point in time.

"The stock of foreign liabilities increased by 17.9 percent from KSh 1,748.8 billion at the end of 2020 to KSh 2,062.4 billion at the end of 2022 largely attributed to an 11.6 percent increase in Foreign Direct Investment (FDI) from KSh 1,069.1 billion at the end of 2020 to KSh 1,193.6 billion at the end of 2022," it stated.

Likewise, the stock of Other Investment (OI) liabilities and the portfolio investment had risen by Sh162.1 billion and Sh4.4 Billion respectively during this period.

"The stock of Other Investment (OI) liabilities increased from KSh 645.9 billion in 2020 to KSh 808.0 billion in 2022. Similarly, Portfolio Investment (PI) rose from KSh 33.0 billion in 2020 to KSh 37.4 billion in 2022," it stated

This increase was attributed to an increase of FDI from KSh 1,069.1 billion at the end of 2020 to KSh 1,193.6 billion at the end of 2022, which accounted for 11.6 percent.

"FDI accounted for more than half of the stock of foreign liabilities across the period under review with the United Kingdom and the Netherlands as the leading sources of FDI stock," it stated.

Furthermore, the net inflows of foreign liabilities declined from Sh229.9 billion in 2021 to Sh57.1 billion in 2022 which was mainly attributed to the lower net inflows of Portfolio Investment, Financial Derivatives, and Other Investments.

"Net inflows of foreign liabilities increased from KSh 59.0 billion in 2020 to KSh 229.9 billion in 2021 but declined to KSh 57.1 billion in 2022," it stated.

Read the original article on Capital FM.

Tagged:
Copyright © 2024 Capital FM. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.