Special Paper No. 06 of 2004 on Security Risks and Private Sector Growth in Kenya

Abstract

Crime is one of the major factors that define the investment climate or the enabling environment for private businesses to thrive. A favorable investment climate is crucial for private sector growth, as it reduces the cost of doing business. A good investment climate attracts private investment by assuring "business security". Security of both property and individuals influences the investment climate. Crime and insecurity in Nairobi and in Kenya as a whole has been on the increase over the years. Indeed, the recent upsurge in crime has been reported in the Economic Survey 2004. Furthermore, concerns about crime and insecurity have been widely broadcasted in the media and have been a subject for discussion in various fora, including parliament. The aim of this study is to establish the scope, threats and dynamics of crime and insecurity in Kenya. Specifically, the objectives of the study are to examine issues related to insecurity and crime in Nairobi, including the scope, trends and dynamics of insecurity and crime in Kenya; and to review the implications of crime and insecurity on the business environment especially in terms of private sector business operations and investment.