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Prior to the passing of the Investment Promotion Act (Act No. 6 of 2004) the existing legal framework for investments was inadequate as a reference point for investment policy. Inadequacy of investment laws was evidenced by the lack of clear provisions specifying investment regulation, controls and facilitation. Over the years, the Kenyan investment policy has been documented in national development plans and several policy papers. The government through its investment policies has sought to attract FDI as a fundamental source for economic growth. Although substantial FDI have been attracted it is submitted in this paper that little benefit has accrued to the Kenyan citizen. On the other hand it is argued that the MSE sector which is a significant contributor to the economy has been ignored in favour of policies aimed at attracting FDI. Such exclusion is misplaced as the MSE sector accounts for a significant proportion of national employment and the Gross Domestic Product. The book analyses the problem of skewed priorities between promotion of MSEs and attraction of FDIs and suggests the best way to incorporate the two interests into the investment policy.