Effects of Uncertainity on Domestic Private Investments in Kenya

The domestic private investment serves as a prerequisite for the development and modernization of any economy. In Kenya, macroeconomic political uncertainties play significant role in influencing investments. That is informed by fact that these investments allow investors to fund particular ventures, which creates jobs increase government revenues through taxation, hence boosting growth economy improving living standards people. However, are severely affected both with regards how formulates political, economic, regulatory policies affect business climate. Investors risk-averse; they base decisions on prevailing future conditions environment. This study focused analyzing effects uncertainty Kenya’s estimated Autoregressive-Distributed Lag (ARDL) bounds technique captures short long-run dynamics this relationship amongst variables. Time series data from UNCTAD, World Bank, Central Bank Kenya period spanning 1980 year 2019 was used. results suggest real GDP (RGDP) effective exchange rates (REER) have positive effect (PDI). contrast, inflation (INFL), Real interest (RINR), Political (PRI), WUIKEN (economic policy volatility stock markets) negative Based results, most factors affecting were found be gross (RGDP), markets). Effectively, recommends should enact ease doing reduce economic uncertainty, such reduction tax rate, stabilization rate stable environment order investor skepticism also enhance their confidence.