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Kenya: Counties to Face Naming and Shaming for Poor Business Environment

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 23 December 2019.

Kenya's ranking in the Ease of Doing Business Index has improved significantly, rising five places to position 56 globally, according to the latest World Bank report.

However, slow registration of property and starting a business remain major hindrances to businesses in the country.

Trade Cabinet Secretary Peter Munya has announced plans to develop a model that will rank counties based on their friendliness to investors, with the aim of naming and shaming those with the worst business environment.

The model, being developed by the Kenya Investment Authority (KenInvest), will be neutral from politics and will provide a clear ranking of counties based on their performance.

Mr Munya cited delays in giving building approval permits in Nairobi County as an example of the challenges faced by investors, and emphasized the need for counties to improve their business environment.

"KenInvest now has a one-stop shop for all government services, and all officers from Nema and other government agencies have a desk there. However, we still have some investors who are still doing these errands on their own, hopping from one office to the other and then come to us to complain," Mr Munya said.

He added that the government would continue to support industries and create the right environment for both home-grown companies and foreign investors to thrive.

"The Trade, Industry and Co-operatives ministry is working to reduce the multiplicity of laws, regulations and levies across the counties that have been cited as a hindrance to businesses. As Kenya improves in the Ease of Doing Business Index, we also appreciate the need to improve the country's competitiveness," said Mr Munya.

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