Kenya strikes deal to safeguard $2 billion in foreign inflows

Kenya has finalized a landmark agreement aimed at shielding over Ksh260 billion ($2 billion) in foreign investments from political and economic uncertainties, days after nationwide protests raised concerns over the country’s investment climate.

• Kenya has secured an agreement aimed at protecting $2 billion in foreign investments through collaboration with Africa Specialty Risks (ASR).
• This initiative intends to lower costs of capital, expedite agreements, and unlock funding across sectors like infrastructure, energy, and trade.
• Additional agreements were signed, bolstering Kenya's aims in healthcare, infrastructure, and sustainable finance

The deal was signed between the Nairobi International Financial Centre Authority (NIFCA), under the National Treasury, and Africa Specialty Risks (ASR), a global underwriter known for its access to AA-rated international reinsurance capacity.

The signing occurred during the Africa Debate Forum in London, with NIFCA CEO Daniel Mainda and ASR’s Chief Distribution Officer Amit Khilosia formalizing the pact.

Treasury Cabinet Secretary John Mbadi and Industry CS Lee Kinyanjui were present as official witnesses, signaling strong government backing.

Through this agreement, ASR will offer de-risking support for projects worth up to Ksh260 billion across Kenya. The support is expected to reduce the cost of capital, fast-track deal execution, and unlock funding for key sectors such as infrastructure, logistics, energy, and trade.

The initiative is a response to concerns over political, regulatory, and economic volatility that have kept some investors on the sidelines.

Kenya acts to curb protest shocks

In the wake of nationwide protests that shook investor confidence and highlighted deep public dissatisfaction, this move was undertaken as a strategic effort to restore stability, reassure foreign investors, and reinforce Kenya’s commitment to a secure and predictable investment climate.

Beyond foreign direct investment, the agreement is expected to spark growth in Kenya’s underdeveloped specialty insurance and reinsurance markets and provide macroeconomic support during times of disruption or shock.

This approach to large-scale de-risking is rare in African markets and puts Nairobi among a small group of cities proactively reducing barriers to investment.

Kenya also signed additional agreements during the forum, including one with Bupa Group to support healthcare investment and another with the Africa Finance Corporation to promote infrastructure and green finance.

This aligns with Kenya’s long-term sustainability objectives and regional development strategy, further positioning the country as a hub for future-focused investment.

According to the Treasury, these developments mark a new chapter for Kenya’s financial services sector, unlocking capital flows into reinsurance, healthcare, infrastructure, and sustainable finance.

Fathia Olasupo

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