A new World Bank Group report has identified three sectors that could attract up to US$1.5 billion (Ksh194.6 billion) in additional private investment and create about 80,000 more direct jobs in Kenya.
The lender’s Kenya Country Private Sector Diagnostic report identifies avocado and mango value chains, coastal tourism and medical consumables manufacturing as areas where reforms could unlock fresh investment and employment.
According to the report, Kenya has significant private-sector opportunities but still faces barriers that have kept investment levels relatively low.
“Kenya has the foundations for strong private sector-led growth: a large domestic market, a skilled workforce, and a well-established role as a regional trade hub,” World Bank said.
“Yet despite these advantages, private investment has been held back by a difficult business environment, infrastructure gaps, and governance challenges that raise costs and uncertainty for investors.”
The Country Private Sector Diagnostic is a World Bank Group tool designed to identify sectors where private investment could support growth and jobs if policy and regulatory obstacles are addressed.
World Bank Reveals Mangoes and Avocados Could Unlock KSh21.7 Billion Investment in Kenya
Agriculture is one of the areas highlighted in the report, with the World Bank Group pointing to opportunities to earn more from Kenya’s avocado and mango production.
Kenya is already Africa’s largest avocado producer and the continent’s fourth-largest mango producer.
Avocado production and export earnings have grown strongly over the past decade. In 2024, Kenya produced about 585,000 tonnes of avocados and earned roughly US$162 million from exports.
The report, however, identifies a much larger opportunity in mangoes.
Kenya produced about 783,000 tonnes of mangoes in 2024, with nearly 800,000 farmers growing the fruit.
Yet only 10 per cent of the mangoes were processed, while just 3 per cent were exported.
The World Bank Group says expanding processing could help Kenya supply domestic and regional juice manufacturers while increasing the value farmers and businesses earn.
Reforms in the avocado and mango value chains could unlock up to US$167 million in additional private investment and generate about 36,000 more and better-paid jobs over 10 years.
The report points to challenges including product quality, pest management and delays in VAT refunds as some of the issues holding back the sector.
Tourism Opportunity at the Coast
The report identifies coastal tourism as the second area of opportunity.
Kenya has more than 600 kilometers of coastline, along with beaches, marine attractions, golf courses, cultural sites, and access to wildlife tourism.
But the report says Kenya is not capturing as much of the international beach tourism market as its potential suggests.
Mombasa receives about 134,000 visitors from European markets, compared with about 2 million arrivals from the same markets at comparable long-haul beach destinations.
Kenya also receives about one million international visitors annually for wildlife tourism. However, fewer than one in five high-spending safari visitors from key source markets extend their trips to the coast.
The report also notes that fewer than one in 10 of the 644,000 visitors traveling to Kenya for meetings, incentives, conferences and exhibitions add a beach stay to their trips.
At the same time, coastal bed-nights in 2024 were about 25 percent above pre-pandemic levels, suggesting there is demand for more accommodation and tourism services.
The World Bank says the coastal tourism sector could attract between US$380 million and US$560 million in new private investment and create up to 14,000 jobs if key challenges are addressed.
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Medical Supplies Manufacturing
Medical consumables manufacturing is the third sector highlighted in the report.
Kenya’s medical consumables market was valued at about US$430 million in 2025 and is projected to reach approximately US$540 million by 2030.
The wider African market was valued at about US$4.8 billion, with demand expected to grow by roughly 10 per cent annually over the medium term.
Products such as gloves, intravenous kits, gauze and syringes account for a significant share of demand, but many African countries continue to rely heavily on imports.
The report says Kenya could build its manufacturing capacity and target markets in neighboring countries including Ethiopia, Somalia, South Sudan, Tanzania and Uganda.
Reforms in the sector could unlock up to US$780 million in additional private investment and create about 33,200 more direct jobs over 10 years.
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Investment Remains a Challenge
The report’s findings come against a backdrop of weak private investment and employment growth in Kenya.
Private investment stood at about 13 percent of GDP in 2024, roughly the same level as two decades ago. Net foreign direct investment fell below 0.2 percent of GDP between 2021 and 2024.
The report also highlights the pressure facing Kenya’s labour market.
About one million people enter the labour market each year, but only around 100,000 find formal employment, leaving the majority to seek opportunities in the informal economy.
Businesses also continue to face high operating costs and infrastructure challenges.
Around 75 percent of firms reported frequent electricity outages, while electricity costs remain among the highest in the region. More than a third of firms also reported inadequate access to water.
Access to finance remains another major obstacle. Private-sector credit fell from 36.7 percent of GDP in 2015 to 29.1 percent in 2024, while the financing gap for micro, small and medium enterprises is estimated at more than Ksh2.5 trillion.
The World Bank Group says addressing these constraints would be important if Kenya is to attract more private capital and expand job creation.
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