Economists across the world have been bullish on Kenya’s economic prospects. In 2023, Tyle Cowen, a columnist, published an article on Bloomberg articulating Kenya’s strong oirebt to become Africa’s Singapore. Cowen considered Kenya to be in a favorable position to take advantage of Africa’s economic growth.
The US ambassador to Kenya, Meg Whitman, has concurred with Cowen’s view. In her speech during the Kakamega International Investment Conference (KAIICO2024), White expressed strong enthusiasm about Kenya’s potential to turn into the Singapore of Africa.
The ambassador also likened Africa’s young population, supply chain diversification, and customer base expansion to what Southeast Asia experienced in 20 years. “Africa reminds us of South East Asia a number of years ago,” she said.
Thus, “Africa should be on every investor’s radar.” The ambassador specifically advocated for Kenya as a target destination for investors.
But why Kenya?
Amb. Whitman shared several reasons for the Kenya’s great economic potential.
First, Kenya’s GDP growth in 2023 was 5.2 percent, double the global average.
Second, the country provides the gateway to the East African community, which has almost 500 million people.
Third, Kenya is the regional logistics and financial hub.
Kenya is also the region’s ICT hub. Whitman attributed Kenya’s success in digital innovation to its super-smart engineers.
Fourth, the country is Africa’s leading destination for startup capital. In 2023, Kenya received more startup funding than Nigeria and South Africa.
Fifth, Kenya has a young, educated, entrepreneurial, and skilled English-speaking workforce.
And lastly, Kenya generates 90% of its electricity from renewable sources. Thus, multinational corporations investing in Kenya would be on the way to meeting the greenhouse gas emission goals.
Related: Top Investment Opportunities in Kenya
The Tale of Kenya and Singapore
The tale of Kenya and Singapore has existed for many years. Kenya’s GDP in 1963 was US$ 926 million compared to Singapore’s GDP of US$917 million – which means Kenya’s economy was larger than Singapore’s. However, the two countries took different economic paths.
Today, Singapore ranks among the world’s top richest countries. In 2022, Singapore posted a GDP of US$466.77 billion. With a population of 5.5 million, Singapore’s economic output per person was a whooping US$82,808.6.
In contrast, Kenya’s GDP in 2022 was US$113.42 billion. The GDP per capita was significantly low at US $2,099.
The question that remains is, can Kenya become Singapore of Africa? Absolutely yes. Kenya has enormous potential to achieve faster economic growth. But it will take decades for Kenya to close the gap. Furthermore, political stability and proper economic policy reforms are necessary for the country to realize this transformative goal. Corruption is a critical issue that must be addressed for Kenya to unlock its full economic potential.
