Influence of foreign direct investment on socio - economic development of Kenya Community Development Foundation in Kenya
The purpose of the study was to investigate the influence of Foreign Direct Investment on Socio Economic development on Kenya Community Development Foundation in Kenya. Generally speaking FDI is an important tool in the development of a country and its increased role in the developing and emerging economies has raised expectations of its potential contribution to their development process. FDI brings significant benefits by creating large number of jobs, improving infrastructure and introducing modern production and management practices but with all its innumerable benefits governments need to be selective in their acceptance of all forms of FDI and channel high quality forms to socio economic areas such as education and healthcare so as to achieve holistic growth and reap fully from the benefits of FDI. The study adopted a case study format and was conducted through interview guides which were done face to face in order to gain a comprehensive in-depth perspective of the research topic. Data collected was analysed using content analysis. The study established that FDI plays a very important role in the socio economic sphere and empowers communities to be self reliant and take charge of their developmental agenda in the long term. The study also investigated the factors that led to foreign firms investing in a particular country and factors such as the country’s perception in the mass media and similar firms operating in the host country, educated workforce, governance issues, availability of opportunities, a conducive investment climate and proper documentation played a significant part in attracting firms to invest in a country. The study also highlights the vital role FDI plays in socio economic development and it was established that it played an important part in providing basic needs such as education, healthcare and food security that contributed to sustainable economic growth, FDI also played an important role in introduction of income generating activities that enabled communities to be self-reliant and take charge of their developmental process and lastly it concluded that FDI plays a vital role in the long term development of a country through forming of partnerships and coming up with innovative solutions to local challenges. The study concluded that FDI plays an important role to a country’s development process and that it should be channelled to key sectors that will assist the country achieve holistic growth. The study therefore recommended in line with the importance FDI plays in socio economic development that the Kenyan government should work with intermediaries such as Kenya Community Development Foundation to channel foreign funds to socio economic sectors vital for the country’s development, the study also recommends the need for the Kenyan government to come up with a clear policy paper on corporate social responsibility to act as guide as to which sectors foreign firms can invest part of their profits and lastly it was a recommendation of the study for local communities to build their capacity in terms of enhancing education standards and building sustainable partnerships with foreign firms in order to achieve long lasting development.