Determinants of Multinational Firms’ Investment Decisions in the Downstream Oil Industry in Kenya
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Date
2013-11Author
Nginga, Pauline W
Type
ThesisLanguage
enMetadata
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The objective of this study was to examine the determinants of multinational firms’
investment decisions in downstream oil industry in Kenya. The study employed crosssectional
descriptive research design. The study focused on multinational firms
involved in the downstream oil industry in Kenya. The targeted population included 5
multinational oil companies, out of which 4 responded. Questionnaires were used as
the main data collection instruments. Data collected from the field was presented in
form of descriptive statistics such as charts, tables and graphs. The study found out
that the most important determinants of multinational oil firms’ investment decisions
is the investor security and good infrastructure mainly in the transportation and
telecommunication sectors. Government regulations and investor security were
indicated as the main difficulties and concerns facing the foreign investors in Kenya.
The study recommends the following: one focal point that deals with all Government
related issues to reduce the multi-agency approach to handling various issues by
Government agencies which increases the cost of operations in Kenya, maintain
consistency in application of the legal and regulatory provisions when addressing oil
industry concerns and the revision of the price regulatory and control process to
ensure incorporation of all operational cost incurred by the foreign investors thereby
making the investment environment favourable. The study also recommends further
studies to be done on the same in the areas such as upstream and midstream oil sectors
in the country.
Citation
A Research Project Submitted in Partial Fulfilment of the Requirement for the Award of Degree Master of Business Administration School of Business University of Nairobi, 2013Publisher
University of Nairobi School of Business