Kenya’s LGBTQ Ban Threatens Ksh 4.2 Trillion in Foreign Investments

Kenya  may face a substantial financial loss if President William Ruto approves the passage of the Family Protection Bill, which aims to ban LGBTQ groups in the country, according to a new report released on Monday by the Trailblazers Business Strategists (TBS).

The report estimates that Kenya is at risk of losing approximately Ksh 4.186 trillion if the bill presented by Homa Bay Member of Parliament Peter Kaluma is passed into law.

In addition to the economic impact, experts have warned that this move would violate Article 7 of the United Nations Human Rights Convention, which Kenya has been a signatory to since gaining independence in 1963.

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Speaking at the launch of the report, Professor Fred Ogola, an expert in economics and social sciences, urged policymakers to exercise caution before passing laws that could affect the country socially, economically, and politically.

According to Professor Ogola, Kenya’s economy heavily relies on funding from Western nations that emphasize LGBTQ rights.

He also warned that passing such a law could potentially impact Kenya’s attractiveness as an investment and tourism destination.

Currently, Kenya receives approximately Ksh 446.7 billion annually from the United States and Ksh 713.2 billion from the European Union to fund development.

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“Passing legislation like this could lead to exclusion and deter foreign investors, especially from countries like the United States, the European Union, and the United Kingdom, which advocate for LGBTQ rights in their policies,” the report stated.

“The negative international perception of such laws may hinder foreign investment and undermine tourism, which could affect various sectors of the economy.”

The report called on policymakers to “carefully assess all financial and non-financial costs and consider various aspects involved in making appropriate decisions in line with Kenya’s stance on human rights and international resolutions.”

The research focused on several criteria, including investor sentiment and economic impact, prison infrastructure, the number of prisoners, government spending, and official documentation.

“Violation of any of these terms among these conditions could lead to the cessation of financial aid. If the bill is enacted into law, Kenya must be prepared to lose Ksh 4.189 trillion.”

This sum, as explained, includes “approximately Ksh 446.7 billion annually received by Kenya from the United States to fund economic and development projects.

About Ksh 446.7 million annually provided by the United States as humanitarian assistance to Kenya (based on the amount given to Kenya in 2022 alone) and Ksh 713.2 billion from the European Union to fund development in the country through the Joint Cooperation Strategies 2018-2022.”

“Ksh 2.4 billion provided by Europe as humanitarian aid, Ksh 238 million for disaster risk reduction strategies allocated by the EU in 2023, Ksh 148.9 billion approved by the IMF for Kenya in July 2023, Ksh 82 billion approved by the IMF to fund Kenya’s efforts to combat climate change, approximately Ksh 11 billion for the implementation of the bill, and billions of funds that will be used to compensate for losses in the tourism sector due to Kenya’s negative image in the international community,” he elaborated.