ESJ Social Sciences www.eujournal.org 23 Effecsts of Uncertainty on Domestic Private Inevestments in Kenya Ambetsa Nelson Mmeri Dr. Onkoba Ongeri B. University of Nairobi, School of Economics, Kenya David Katuta Ndolo Tufts University, Boston Massachusetts, USA Doi:10.19044/esj.2023.v19n16p23 Submitted: 09 January 2023 Accepted: 06 June 2023 Published: 30 June 2023 Copyright 2023 Author(s) Under Creative Commons BY-NC-ND 4.0 OPEN ACCESS Cite As: Mmeri N.A., Ongeri B.O. & Ndolo D.K. (2023). Effecsts of Uncertainty on Domestic Private Inevestments in Kenya. European Scientific Journal, ESJ, 19 (16), 23. https://doi.org/10.19044/esj.2023.v19n16p23 Abstract Domestic private investment serves as a prerequisite for the development and modernization of any economy. In Kenya, macroeconomic and political uncertainties play a significant role in influencing private domestic investments. This is informed by the fact that these investments allow investors to fund ventures, which creates jobs and increase government revenues through taxation. Hence, it boosts the growth of the economy and improves the living standards of the people. However, private domestic investments are severely affected by both macroeconomic and political uncertainties about how the government formulates political, economic, and regulatory policies that affect the business climate. Investors are risk-averse; hence they base investment decisions on prevailing and future conditions of the business environment. This paper focuses on analyzing the effects of uncertainty on Kenya’s domestic private investments. The study estimated the Autoregressive-Distributed Lag (ARDL) bounds technique which captures both short and long-run dynamics of this relationship among the variables. Time series data from UNCTAD, the World Bank, and the Central Bank of Kenya for the period spanning 1980 to the year 2019 was used. The study results suggest that real GDP (RGDP) and real effective exchange rates (REER) have a significant and positive effect on private domestic investment