Country Overview
Due to recent reforms, Kenya’s regulatory framework has improved significantly in the past three years, with its insolvency frameworks second strongest in all of Africa. Combined with stable financial markets, Kenya’s infrastructure investment activity has remained high. For continued progress in its domestic infrastructure environment, the Kenyan government could seek to conduct post completion reviews and enact policies that increase the domestic liquidity in financial markets.
See Full Overview Data
GDP per capita
1,998 USD
Population
49.4 million persons
Infrastructure quality
53.6 (0-100 best)
Infrastructure investment
6.9% of GDP
Private infrastructure investment
245.3 5-year average, USD millions
Infrastructure gap
1.3% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
68
1
35.1
60
3
53.3
16
1
95.6
27
11
82.6
40
7
34.7
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

68
1
35.1
Emerging
43
11
59.8
Contender
60
3
53.3
Aspiring
16
1
95.6
Global Leader
27
11
82.6
Top performer
40
7
34.7
Contender
56
19
23.2
Aspiring
49
4
28.2
Aspiring

Metric Overview

Strengths

Strength of insolvency framework

Kenya has a solid framework for reorganisation and bankruptcy which governs formal insolvency. This ensures investors have appropriate protection and helps attract investment for potential infrastructure projects.

Financial stability

Kenya’s financial stability is satisfactory. It is similar to the average of 83 for the Lower Middle Income Countries. A stable financial system facilitates the smooth flow of funds between infrastructure assets and investors. The impact of the COVID-19 pandemic is a concern.

Infrastructure investment

Investment in infrastructure is high in Kenya, at 6.5% of GDP per annum. The COVID-19 pandemic may impact these efforts.

Strength of insolvency framework

Kenya has a solid framework for reorganisation and bankruptcy which governs formal insolvency. This ensures investors have appropriate protection and helps attract investment for potential infrastructure projects.

Financial stability

Kenya’s financial stability is satisfactory. It is similar to the average of 83 for the Lower Middle Income Countries. A stable financial system facilitates the smooth flow of funds between infrastructure assets and investors. The impact of the COVID-19 pandemic is a concern.

Infrastructure investment

Investment in infrastructure is high in Kenya, at 6.5% of GDP per annum. The COVID-19 pandemic may impact these efforts.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Lower middle income country average

Regulatory frameworks:
Strength of insolvency framework

Financial markets:
Financial stability

Opportunities to Grow

Post-completion reviews

Kenya does not undertake post-completion reviews for infrastructure projects. Doing so could help determine whether projects have achieved their objectives efficiently and identify areas for improvement.

Stocks traded

At 1% of GDP, Kenya’s value of stocks traded is significantly below the Lower Middle Income Countries’ average of 14% of GDP. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

GDP per capita

Kenya has a low GDP per capita of USD 1,998 but is growing at a long-term average rate of 5.6% per annum. High growth, should it not be overly impacted by COVID-19, can be expected to correlate with greater infrastructure spending.

Post-completion reviews

Kenya does not undertake post-completion reviews for infrastructure projects. Doing so could help determine whether projects have achieved their objectives efficiently and identify areas for improvement.

Stocks traded

At 1% of GDP, Kenya’s value of stocks traded is significantly below the Lower Middle Income Countries’ average of 14% of GDP. As this indicator measures the liquidity of equities, it is important to infrastructure investors to know they can exit investments at appropriate points.

GDP per capita

Kenya has a low GDP per capita of USD 1,998 but is growing at a long-term average rate of 5.6% per annum. High growth, should it not be overly impacted by COVID-19, can be expected to correlate with greater infrastructure spending.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Lower middle income country average

Financial markets:
Stocks traded

Funding capacity:
GDP per capita

Detailed Data

This section shows country data for each of the 41 metrics. Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
68
1
35.1
- No ranking change Ranking increase Ranking decrease

Metric

Kenya

Lower middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

31.8 (+3.4)
31.4

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

41.8 (+0.6)
41.5

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

No
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

56.7 (+13.3)
34.2

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

30.6 (+3.2)
38.7

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Kenya

Lower middle Income Countries Average

31.8 (+3.4)
31.4
41.8 (+0.6)
41.5
No
-
56.7 (+13.3)
34.2
30.6 (+3.2)
38.7
Yes
-

Country Overview Data

Due to recent reforms, Kenya’s regulatory framework has improved significantly in the past three years, with its insolvency frameworks second strongest in all of Africa. Combined with stable financial markets, Kenya’s infrastructure investment activity has remained high. For continued progress in its domestic infrastructure environment, the Kenyan government could seek to conduct post completion reviews and enact policies that increase the domestic liquidity in financial markets.
GDP per capita

1,998 USD

Population

49.4 million persons

Infrastructure quality

53.6 (0-100 best)

Infrastructure investment

6.9% of GDP

Private infrastructure investment

245.3 5-year average, USD millions

Infrastructure gap

1.3% of GDP

GDP

98.6 USD billion

GDP growth rate

5.6%

GDP per capita growth rate

9.1%

Gini coefficient

40.8 (0-100 worst)

Gross Government Debt

62.0% of GDP

Inflation rate

5.6%

Summary credit rating

35.0 (0-100 best)

Unemployment rate

9.3%

Urbanisation ratio

27.0% of total population

Road connectivity

72.1 (0-100 best)

Quality of road infrastructure

4.1 (1-7 best)

Efficiency of train services

4.0 (1-7 best)

Efficiency of air transport services

5.0 (1-7 best)

Efficiency of seaport services

4.2 (1-7 best)

Electricity access

73.4% of population

Electricity supply quality

19.5% of output lost

Exposure to unsafe drinking water

61.9% of population

Reliability of water supply

3.6 (1-7 best)

Digital Adoption Index

0.5 (0-1 best)

Mobile-broadband subscriptions

41.9 per 100 population

Fixed-broadband Internet subscriptions

0.7 per 100 population