This archive report was first published on 4 December 2019.
Published on December 4, 2019, the government's proposed Business Laws (Amendment) Bill 2019 aims to simplify business operations and remove barriers faced by SMEs. East Africa Community and Regional Development Cabinet Secretary Adan Mohamed emphasized the government's efforts to make business operations easier.
‘We are making deliberate efforts to make it simple and easy for businesses to operate,' said CS Adan Mohamed. ‘This Bill is just but one part of many other reforms that we are rolling out this financial year.'
The proposed amendments target several laws, including the Law of Contract Act, the Industrial Training Act, the Registration of Documents Act, and others. These changes aim to reduce the cost of compliance for SMEs, which has been a significant challenge for many entrepreneurs.
For instance, the proposed amendments to the Kenya Information and Communications Act seek to regulate bloggers and impose a Sh500,000 fine or a two-year prison sentence for non-compliance. Additionally, the Kenya Revenue Authority (KRA) is developing a system to require online merchants to pay income tax, which may increase the cost of business for vendors using online platforms.
The government's plan is to boost the country's ranking in the World Bank Ease of Doing Business index to position 50 by next year. The country has seen an unprecedented rise in the index, from 136 globally in 2014 to 61 earlier this year.
