Abstract: The universal benefits of Foreign Direct Investment (FDI) for developing economies are quite renowned. Studies demonstrate that FDI enables human capital formation, improves international trade integration, results in technology spillovers, improves enterprise development and helps create a more competitive business environment. The approach to the establishment of these economic zones is also undergoing major change in both form and function, whereby the conventional Export Processing Zones (EPZs) are seemingly giving way to SEZ. The idea is that through the establishment of integrated infrastructure, provision of incentives for and removal of barriers to business, these localised zones will unlock the economic potential of the select sectors and attract more investment. In September 2015, the incumbent president of Kenya, H.E Uhuru Kenyatta, signed the SEZ Act. This has seen the Government set up SEZ designated areas in Eldoret, Athi River, Naivasha, Kisumu, Mombasa, Nairobi and Lamu, to fast-track manufacturing of various products in these locations. The extent to which FDI in Special Economic Zones has succeeded or will potentially succeed in catalysing economic growth in Kenya is what this paper has sought to explore.
Keywords: Foreign Direct Investment (FDI), Economic Growth, Special Economic Zones.
Title: The Impact of Foreign Direct Investment on Economic Growth in Kenya: A Case Study of Kenya’s Special Economic Zones
Author: Catherine M. Muthama, Halima M. Ahmed, Emma Onsongo
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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