Kenya’s market barriers cost jobs, scare off foreign investment

Nairobi skyline. Kenya’s overall Product Market Regulation score stands at 2.92 — the highest and most restrictive among countries with available data, and far above the average for middle-income economies (2.27).

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The World Bank has flagged Kenya’s “unfair” business practices, warning that competition-limiting policies discourage foreign investment and stifle economic growth and job creation.

In its latest Kenya Economic Update (November 2025), the bank says Kenya’s business environment is more restrictive than that of other frontier markets, deterring private investment.