Effecsts of Uncertainty on Domestic Private Inevestments in Kenya

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 domestic investments. This is informed by fact that these investments allow investors to fund ventures, which creates jobs increase government revenues through taxation. Hence, it boosts growth economy improves living standards people. However, are severely affected both about how formulates political, economic, regulatory policies affect business climate. Investors risk-averse; hence they base decisions on prevailing future conditions environment. paper focuses analyzing effects uncertainty Kenya’s The study estimated Autoregressive-Distributed Lag (ARDL) bounds technique captures short long-run dynamics this relationship among 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 product (RGDP), markets). Effectively, recommends should enact ease doing reduce economic uncertainty, such reduction tax rate, stabilization stable environment investor skepticism also enhance their confidence.