Nairobi, July 15 -- Kenya's foreign direct investment (FDI) inflows dropped $381 million (Sh41.14 billion) in 2020, hurt by Covid-19 restrictions and fresh rules demanding foreign firms in some industries gradually cede more stake to locals.

The United Nations Conference on Trade and Development (UNCTAD) estimates FDIs amounted to $717 million (Sh77.44 billion) in 2020, a 34.7 percent drop compared with revised $1.1 billion (Sh118.58 billion) a year earlier.

"Kenya introduced local participation requirements in various industries, including insurance, telecommunication and ICT services," UNCTAD analysts wrote in the World Investment Report 2020.

Kenya, through National Information and Communications Technology (ICT) policy guidelines, pu...