Assessing the impact of the constitution of Kenya 2010 on foreign direct investments: opportunities and challenges

The provisions of the 2010 Kenyan Constitution indirectly promotes Foreign Direct Investment (FDI). It outlines principles that creates favorable conditions for thriving of FDI in Kenya. This study focused on the Foreign Investment Protection Act, revised in 2022, which defines foreign nationals, foreign assets; outlines procedures for investment approval; and provides protections for foreign investors. Utilizing a qualitative approach, thi research incorporates document analysis of relevant legal texts, case studies comparing FDI trends before and after the constitution was adopted. The research findings indicated that FDI in Kenya is concentrated in sectors such as manufacturing, agriculture, services, and infrastructure, with significant inflows from countries like the United States, the United Kingdom, China, and India. The benefits accruing from FDI include job creation, technology transfer, and improved balance of payments. However, challenges such as corruption, regulatory uncertainty, infrastructure deficiencies, security concerns, and skill shortages undermine investor confidence. Initiatives the establishment of Special Economic Zones (SEZs) further enhance Kenya's appeal as an investment destination. Additionally, the government actively promotes public-private partnerships to foster collaboration between foreign investors and local enterprises. Based on the findings, the research recommends strengthening anti-corruption frameworks and enhancing transparency in procurement processes. Improving infrastructure, enhancing transport networks, and addressing security concerns are also essential to create a more attractive investment climate. By implementing these recommendations, Kenya can better position itself to attract and retain foreign direct investment, ultimately driving economic growth and development.