According to Jetro’s statistics, the Japanese export to Kenya have stood about $898million last year. This is due to lack of communication policy and regulation changes that have been established by the government. Which required irritation and blocking to the Japanese investors in Nairobi.
The Foreign journalist claimed that the companies are scared for the risk of poor communication or implementation of new laws that is expected to happen that will affect Japan’s trade policy.
Their other challenges that may occur for instance, On the elections, sometimes they become violent and create instability which will affect the company’s profits. However, Jetro’s senior director quoted that Ken invest has helped Japanese companies to interpret some of the policy change in the countries.
However, there are other challenges that investment can be hindered in Kenya and Africa this is on financing or foreign exchange, social and political instability, hiring and human resource, poor infrastructure and trade regulation.
The power outages which is the loss of electric power that is commonly in Kenya and sub-Saharan Africa have pushed some companies to other countries such as Morocco, because they are afraid of taking risk on the production and manufacturing sector.
The trade deficit, however, remains wide exports to Japan were Sh6.34 billion (cut flower, tea, coffee, fish fillet, nuts,) compared to Sh80.7 billion imports (car, truck, steel, machinery). Kenya is Japan’s primary importer alongside South Africa and Egypt (second-hand cars, boats, machinery, iron and steel, electrical equipment and seafood).