The World Investment Report 2026 published by UNCTAD shows that the inflow of foreign direct investment to East Africa was driven by continued investments in large-scale projects and active activities in a number of least developed countries. Ethiopia has maintained its position among the main investment destinations in the region, attracting about $4 billion (approximately 517 billion KSh) in FDI, as well as recording a significant increase in the number of new investment projects (greenfield). Uganda followed with $3.4 billion (approximately 439.5 billion KSh), boosted by investments in oil refining and battery production. Kenya was not included in the list of leading recipients of FDI in the regional survey for East Africa.
Overall, East Africa saw higher investment activity rates in 2025. The report indicates that FDI inflows to the subregion increased by 12 percent, rising from about $13 billion (about 1.68 trillion KSh) in 2024 to $15 billion (about 1.94 trillion KSh) in 2025. UNCTAD attributes this growth to increased investment in mining, hydrocarbons, energy infrastructure, and selected manufacturing sectors in a number of East African countries.
Despite its absence from the list of leading recipients of FDI, UNCTAD calls Kenya one of the most attractive destinations in Africa for investment in digital infrastructure due to the structure of its energy mix. «FDI inflows to East Africa were supported by continued investments in major projects and activities in a number of least developed countries. Ethiopia maintained inflows of about $4 billion and recorded a significant increase in the number of new investment projects. Uganda remained one of the leading recipients of FDI among the least developed countries in Africa, with inflows of $3.4 billion, driven by investments in refining and energy storage», the report says.
The report notes that almost 90% of Kenya's electricity is produced from renewable sources, mainly from geothermal energy, giving the country an advantage in both cost and reliability when competing for investments. It is further emphasized that Kenya has already secured an investment package of $1 billion (about 129.3 billion KSh), including the construction of a geothermal energy data center.
Kenya's investments in digital innovation are also highlighted. It is indicated that Konza Technopolis is developing as an innovation hub to support investments in the digital economy, and regulatory sandbox initiatives in the information and communication technology sector have created an environment in which new products can be tested before their full-fledged commercial launch, which increases the attractiveness of the country for technology investors. UNCTAD also points to regional cooperation as an important way to attract investment in East Africa.
The report highlights the role of the East African Community Market Access Program (MARKUP II), implemented jointly with the European Union. The program supported 37,819 small and medium-sized enterprises, helped more than 115 firms generate $16 million (about 2.07 billion KSh) in sales and export revenue, and attracted $1 million (about 129.3 million KSh) in investments for more than 70 enterprises. The report says that the program is complemented by regional initiatives such as the EAC Investment Guide, the buyer-seller platform, the digital marketplace and the Diaspora Desk, designed to increase the attractiveness of the region for investors.
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