Violence in Kenya’s Coastal region has seen the number of tourists reduce while investors have shied away. Photo/FILE
Total annual foreign and local investments reduced from $1.84 billion in 2011 to $712 million in 2012, a 61 per cent drop.
Slump blamed on security lapses in the country’s coastal region and the Kenya’s incursion into Somalia.
A rise in Kenya’s risk profile — a combination of economic and political risks — could discourage foreign firms from investing in the country and raise the level of premiums that insurers will charge for political risk covers.