NAIROBI, Kenya, Aug 4- The Central Bank of Kenya (CBK) has kicked off the Foreign Investment Survey 2016, to be carried out between August and October this year.
Speaking during the launch of the survey on Thursday, CBK Governor Patrick Njoroge says the purpose of the survey is to collect information from resident enterprises on their foreign assets and liabilities in the 2014/ 2015 financial year.
The data collected will be used for investment promotion and policy formulation.
“My question is, if for example UNCTAD is putting out data, if Financial Times is putting out data, what is the true data if not yourselves (enterprises)? Somehow those data need to be verified. Maybe this is someone in Washington or London who is coming up with some numbers about what we are doing,” Njoroge said emphasizing on the need for frequent data generated locally.
The survey is being done in collaboration with the Kenya National Bureau of Statistics (KBNS) and the Kenya Investment Authority. This will be the forth survey after 2010, 2013 and 2015 surveys.
The survey will be administered to statistically selected local enterprises based on their cross-border transactions.
“Lessons from the global financial and economic crisis and the sovereign debt crisis have shown that, while foreign investments have become increasingly important for developing economies, they are also sources of vulnerabilities to such economies,” Njoroge said, “This has called for collection of quality data on foreign assets and liabilities in an effort to establish the type, magnitude and direction of private capital flows as well as investor perceptions on investment climate.”
In the 2015 survey, which focused on 2012/ 2013 financial year, Foreign Direct Investments (FDIs) accounted for the largest share of the total foreign liabilities and increased by 20.7 per cent from Sh376.5 billion in 2012 to Sh454.5billion in 2013.
The major recipient sectors of FDI were Wholesale and Retail trade, repair of motor vehicles and motorcycles, financial and insurance activities and Manufacturing which accounted for 24.3, 18.2 and 16.0 per cent of the total FDI inflows respectively, in 2013.