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The report examines the investment climate in Kenya from the perspective of South African firms, highlighting Kenya's role as a strategic hub for East Africa. While South African companies are attracted by Kenya's skilled workforce and strategic location, they face significant hurdles including poor infrastructure, high electricity costs, corruption, and local resentment toward perceived South African economic dominance. The document analyzes the socio-economic landscape of Kenya, the trade imbalance between South Africa and Kenya, and the specific operational difficulties encountered by investors, such as red tape and insecurity. It concludes that while South African firms can be successful through local partnerships and sensitivity to Kenyan business culture, the Kenyan government must implement structural reforms in infrastructure and governance to sustain foreign direct investment.