Uganda leads as the most preferred investment destination by Kenyan Small and Medium Enterprises (SMEs) looking to expand outside the country.
Tanzania and Rwanda are also preferred destinations. Seventy Eight percent of Kenyan SMEs have opened branches in Uganda with 59 percent heading to Tanzania while Rwanda has attracted 41 percent.
Reasons given by the SMEs happy to trade in Uganda include the ease to transport their wares and the friendly political atmosphere and the support accorded courtesy of the good working relationship between the governments of Kenya and Uganda.
The survey was carried out by the Nation Media Group and the KPMG.
“From 2009, we have consistently seen that most SMEs are inclined to set up their first operations in Uganda then Tanzania. From an East African perspective, Uganda remains our biggest business partner,” Maurice Gachuhi, senior manager at KPMG Kenya said at a forum in Nairobi.
Top 100 survey is a joint initiative by Nation Media Group and KPMG that was started in 2007. It seeks to identify and recognise the country’s fastest growing medium-sized companies and celebrate some of the most outstanding entrepreneurs.