Homa Bay — Prime Cabinet Secretary Musalia Mudavadi has warned against harming foreign investors at county levels saying it damages bilateral relations and erodes investor confidence.
Mudavadi, also the Cabinet Secretary for Foreign and Diaspora Affairs said foreign investments just like local investments in our respective counties must be properly safeguarded.
He has appealed to Governors, county leaders and locals to cultivate a culture of “welcome and protect”, underscoring how local missteps impose national costs.
“Sometimes, how we manage Foreign Investments in our counties is absolutely critical.” noted the Foreign Affairs, CS.
“Competition for Foreign Direct Investment is absolutely essential for investment, employment and revenue growth. If we do not respect the rule of law and harm foreign investors, we cause a lot of damage and the consequences are very grave.” he added.
Mudavadi said investments in the respective counties must be properly safeguarded.
He said to accelerate development and close the socio-economic divide as a result of embracing devolution, the decisions made at county levels on foreign investment must be well thought out.
“In this regard, we must also confront how decisions at the county level can reverberate far beyond our borders, affecting national interests and our global standing.” noted Mudavadi.
Adding that “Consider the regrettable case in Meru County involving Leopard Rock Lodge, a luxury eco-tourism facility built by a French investor at a cost of over Sh500 million.
In 2019, under the previous county administration, officials allegedly orchestrated the forcible eviction of the investor, leading to the destruction of the lodge’s infrastructure within Meru National Park.”
Mudavadi regretted that the investor, a French national, had legally leased the land and invested in sustainable tourism that promised jobs for local communities and revenue for the county.
He cautioned that internal political disputes and allegations of favouritism, at many times lead to destruction of property and scare away investors.
For the case of Meru, Mudavadi said investigations showed that county enforcers demolished key structures of the prime investment, prompting a lawsuit that dragged on for years.
“The Courts ruled in favour of the investor, awarding compensation for breach of contract and unlawful eviction. The matter escalated internationally when the French Embassy raised concerns with our national government, highlighting the damage to bilateral relations and investor confidence.” he regretted.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Success!
Almost finished…
We need to confirm your email address.
To complete the process, please follow the instructions in the email we just sent you.
Error!
There was a problem processing your submission. Please try again later.
“In May 2025, the national government intervened at a cost of hundreds of millions, shifting the burden to taxpayers and underscoring how local missteps impose national costs. This incident sends a chilling message: if we treat investors with such hostility, driven by petty politics rather than policy, we foster an environment of investment unfriendliness, deterring the very capital we need to create jobs for our youth.” Mudavadi warned.
The Prime CS was speaking in Homa Bay County during this years’ Devolution Conference, where he urged counties to enact investor-friendly policies that will actualize streamlined permits underpin dispute resolution mechanisms, and incentives for sustainable projects.
“By doing so, we not only encourage investors to come but to stay, expand, and multiply opportunities.” affirmed the Prime CS.
The 2025 Devolution Conference is being held under the theme “For the People, For Prosperity: Devolution as a Catalyst for Equity, Inclusion and Social Justice”.
Mudavadi said the 2025 edition serves as a pivotal moment for Kenyans to reflect on the transformative journey of devolution and its immense potential in bridging the socio-economic divides.
