Business environment turns off investors

Opposition leader Raila Odinga contends that President William Ruto’s frequent foreign excursions will not succeed in attracting investors to the country due to an unfavorable business environment. Odinga, leader of the Azimio alliance, dismissed Ruto’s overseas trips as a misuse of public resources, asserting that they hold no meaningful impact on bolstering investor confidence.

On Wednesday, Raila attributed the perceived exodus of investors from Kenya to the punitive taxes implemented by Ruto’s administration. He criticized the foreign trips as counterproductive in luring foreign investors, citing the deterrent effect of high taxes on the business environment.

Raila, in an interview with Citizen TV, cast doubt on Ruto’s international travels, including the widely publicized US-Kenya business roadshow in September. He argued that companies conduct thorough due diligence and background checks on the prevailing business climate before committing to invest in Kenya.

While acknowledging Ruto’s efforts to attract investors during his trips, Raila emphasized that the existing businesses must feel comfortable for new investors to consider entering the market. He labeled the globetrotting approach as a waste of time and public funds, asserting that building a tax-friendly environment is pivotal for attracting and retaining investments.

President Ruto has faced scrutiny and criticism over the frequency of his foreign travels, defending them as being in the best interest of Kenyans. Ruto claimed the role of Kenya’s foremost diplomat and asserted that every shilling spent during his travels can be accounted for.

During a joint press interview at State House, Ruto highlighted the benefits derived from bilateral deals made during his trips, citing revived projects and increased job opportunities for Kenyans. He defended his travel record, stating that the stability of the country is a result of his efforts to address critical matters through international engagements.

Ruto acknowledged that he has traveled more extensively than his predecessor Uhuru Kenyatta but emphasized that it was for the purpose of addressing and resolving key issues affecting Kenya. He cited a 50% reduction in the travel and entertainment budget, saving Sh11 billion, and emphasized the positive outcomes of bilateral opportunities, such as Kenyan employment abroad.

Reports from the Controller of Budget indicate that President Ruto made approximately 48 foreign trips over the last 15 months, with foreign travel expenses amounting to Sh357 million during his tenure.