APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA modernizing infrastructure in order to reduce the cost of doing business. Efforts at promoting foreign direct investment (FDI) have not been very successful, particularly in manufacturing, services and agro-processing. To boost FDI inflows, Kenya joined the Multilateral Investment Guarantee Agency (MIGA) and the African Trade Insurance Agency which guarantees investors against non-commercial risks, and the International Centre for Settlement of Investment Disputes (ICSID). Also, Kenya has extended its network of international investment agreements to several countries. 404. Historically, Kenya’s trade policy development has evolved through import Substitution Policies (1960s-1980s), trade liberalization through Structural Adjustment Policies (SAPs) of the 1980s, and export-oriented policies since the 1990s. Presently, Kenya’s trade regime is guided by market-driven principles of liberalization under the World Trade Organization (WTO). Extractive Industry Management 405. The CSAR indicates that Kenya has long been endowed with a variety of minerals, including gold, diamond, ruby, titanium, gemstones, soda ash, fluorspar and rare earth. Until now, mapping and exploitation of these minerals either through small-scale artisanal activity or large-scale commercial operations. Oil and other mineral resources have been identified as an additional priority sector under the Economic Pillar of Kenya Vision 2030. Due to the high number of applications for various exploration/mining licenses, the Ministry established criteria for vetting applications before they are forwarded to the Prospecting and Mining Licensing Committee (PMLC) for consideration. 406. New discoveries of oil in Turkana have reinvigorated the importance of the extractive industry to Kenya’s economy and have the potential to spur faster economic growth, job creation and to be an important source of fiscal revenues. However, growth of this sector brings forth sector-specific challenges regarding the need to design an appropriate governance structure that should ensure that the benefits of the mineral wealth benefit all the stakeholders 4.8.2 Findings of the Country Review Mission 4.8.2.1 Progress made since 2006 Trade and Investment 407. Kenya has taken steps to facilitate trade and investments into the country. It has enacted various legislations that have improved the businesses environment and enhanced the ease of doing business significantly. Yet, FDI inflows continue to remain modest. | 176 |