Nairobi — Regulatory bottlenecks, complex tax policies and high business costs are hindering the flow of new American investments into Kenya, senior U.S. officials have said.
Speaking during the Mandela Washington Alumni Forum on U.S.-Africa Commercial Partnerships in Nairobi, U.S. Department of State Deputy Assistant Secretary for African Affairs Sarah Troutman said investor confidence is increasingly being tested by regulatory processes that make it difficult for businesses to establish and expand operations.
She added that companies have consistently raised concerns over lengthy approval processes, regulatory uncertainty, complicated tax policies and high energy costs, which are yet to be addressed.
"There's not a lack of people, there's not a lack of talent, and there's not a lack of opportunity. It's about getting rid of some of the regulatory barriers so that American companies can partner with Kenyan companies and create jobs. That's a win-win for everybody," Troutman said, adding that sectors attracting growing interest from American investors to the country include agriculture, digital technology, healthcare, and others.
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Her comments come as Washington seeks to deepen commercial engagement with Africa through trade and private sector investment while reviewing ways of strengthening programmes such as the African Growth and Opportunity Act (AGOA).
Susan Burns, Charge d'Affaires at the U.S. Embassy in Kenya, said improving the business environment remains central to the U.S. commercial engagement strategy across Africa.
"When companies tell us regulations are not streamlined, tax systems are too complicated or customs processes are inconsistent, we don't simply urge governments to address those issues,we also offer technical expertise to help improve the business environment."
Burns said U.S. embassies are increasingly working with African governments to simplify regulations, improve tax and customs administration and create more predictable investment environments, noting that such reforms would benefit both foreign investors and domestic businesses.
According to the Office of the United States Trade Representative (USTR), U.S. investment and trade linkages with Kenya were estimated at $3.3 billion in 2024, and trade in goods alone was $1.8 billion in 2025.
U.S. exports to Kenya grew by 28.5 percent to $990.8 million in 2025, and imports from Kenya increased by 16.5 percent to $858.9 million, leaving the United States with a $131.9 million goods trade surplus.
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