Public Participation in Foreign Direct Investment Projects in Kenya

Abstract

The stumbling block in public participation processes lies in the slow progress in achieving the goal of inclusivity of all affected stakeholders. Even though Kenya remains one of the leading as well as most active recipients of Foreign Direct Investment in the African continent, its level of development is still relatively weak. Since 2010, FOr inflows have considerably increased, and the Kenyan government has embarked on passing best-practice policies that would bring about positive effects in terms of opening up markets, improving technology, managing finances, and refining skills. This study sought to explore whether the legislative framework on FOI in Kenya provides for public participation in the decision-making process. This study investigated the current legislative framework on FDI in Kenya and whether the legislation specifically includes public participation. The study also examines lessons learnt from cases that Kenya has been involved in following a decision on FOI: the Tullow Oil Project and the Lamu Coal Power Project. The study also evaluates whether public participation of the local population is essential before Kenya makes a decision on foreign direct investment. These are discussed under different thematic areas in this study. The study established that the Constitution of Kenya 2010 is the backbone to the legal framework on public participation. Generally, Kenya lacks a robust system of legislation that would make the government accountable for various FDI-funded projects, which calls for a sustained political and macroeconomic policy environment backed up with an in-depth assessment of emerging best-practice policies in attracting FOI especially by examining the role of public participation.