Determinants Of Multinational Firms’ Investment Decisions In The Downstream Oil Industry In Kenya
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.