This archive report was first published on 8 November 2019.
Kenya's economy is in a state of crisis, with job losses and business closures on the rise. According to Speaker Kenneth Lusaka, the country is facing economic challenges, with austerity measures implemented by the government aimed at cutting costs.
Speaking at a roundtable meeting between the Senate and Kepsa at a Naivasha hotel on November 8, 2019, Lusaka warned that the country is 'staring at a major crisis going into the future' and that the current situation is a 'recipe for chaos.'
He attributed the situation to 'red tapes' and called for the reduction of government bureaucracy and increased competitiveness to attract investors. Lusaka also emphasized the need for county governments to come up with plans to attract investors to set up industries outside Nairobi, citing the recent census that shows more Kenyans moving to urban centers.
Top officials from the private sector, including Kepsa chairman Nick Nesbitt and CEO Carole Kariuki, echoed Lusaka's concerns, citing the suffering of businesses due to unpaid pending bills by county governments, lack of harmony in policies, and the multiplicity of taxes.
Nesbitt noted that Small and Medium Enterprises have been hardest hit by the effect of having too many regulators to deal with, while Kariuki emphasized the need for the Senate to create a framework that enables predictability in terms of payments.
