Factors considered by Kenyan firms when deciding to establish subsidiaries/branches in Uganda and Tanzania

Abstract

This study was about finding out factors considered by Kenyan firms when deciding to establish subsidiaries/branches in Uganda and Tanzania. The other objective of the study was to find how the said firms rate the attractiveness of the investment policies and incentives in Kenya, Uganda and Tanzania. The study utilized data collected from nine firms Kenyan parented with subsidiaries in Uganda and Tanzania and are quoted in the Nairobi Stock Exchange. A census approach was applied in this study since the firms in question are few. The data was analyzed using frequencies, percentages and rankings. The findings revealed that Kenya's investment policies and incentives are generally superior to either Uganda or Tanzania However, poor infrastructure, insecurity and poor economic performance have not complimented the superior investment policies and incentives. These issues need to be addressed in order to attract investors and/or retain them It is recommended that trade barriers which were rated as fifth in importance of the factors be lowered between the three East African countries.