NAIROBI, April 16 (Xinhua) -- Chinese Foreign Direct Investments (FDI) are likely to increase in Kenya in 2018 due to favorable business climate, experts said on Monday.
Stephanie Onchwati, Investment Analysts at Cytonn, told Xinhua in Nairobi that most of the Chinese funding is likely to go into the real estate sector with high returns for investors.
"Due to stable macro-economic conditions, we are likely to see more Chinese FDI into Kenya in 2018 as the Asian nation seeks to invest in countries with high potential for growth," Onchwati said during the release of the Cytonn 2017 banking sector report.
Onchwati said the Chinese government is currently the largest source of overseas development funding for Kenya reflecting the strong Sino-Kenyan ties.
She added that the Chinese private sector is likely to follow its government lead and invest more funds into Kenya.
According to Cytonn, Chinese investors have already helped to transform Kenya's real estate sector.
"The Chinese have been able to upgrade Kenya's skyline into a modern metropolis through the construction of modern skyscrapers," Onchwati said.
She noted that Chinese firms are beginning to set up manufacturing plants to produce goods that were previously imported and hence improve Kenya's balance of trade.