By Dr. Juma Mukhwana
Kenya is on a transformative path to becoming the preferred destination for local and international investors, actively fostering a globally competitive and inclusive economy. Guided by Vision 2030, the Ministry of Investments, Trade, and Industry has launched pivotal reforms to elevate our business environment and tackle the unique challenges Kenyan enterprises face today. These reforms aim to strengthen consumer protection, encourage fair trade, and propel growth in investment, trade, and manufacturing.
The Business Laws (Amendment) Bill, 2024 consolidates essential reforms to improve the operational landscape for businesses. This Bill reflects extensive input gathered through stakeholder forums attended by over 250 representatives from the public, private, and academic sectors. By addressing the high cost of doing business and regulatory constraints, the Bill proposes actionable solutions to remove bottlenecks that have hindered economic activity and business expansion.
One key reform is the introduction of an import levy on finished products, which will level the playing field for local manufacturers. This initiative encourages domestic production by balancing costs between imports and locally produced goods, ultimately fostering job creation, strengthening local industry, and aligning with Vision 2030’s goal to boost manufacturing’s GDP share to 20%.
To position Kenya as a hub for business process outsourcing (BPO), the government is redefining “employer” to include agents within the BPO sector, which allows greater operational flexibility. This change supports growth in digital outsourcing, attracts foreign investment, and expands job opportunities for a skilled Kenyan workforce.
Combatting counterfeit goods remains a priority, given the harm these products inflict on both consumers and legitimate businesses. The government is enhancing measures to ensure all goods produced in Kenya meet rigorous local standards, coupled with a reliable distribution chain. This commitment to anti-counterfeit enforcement will instill consumer confidence and foster a fairer market for genuine manufacturers.
Accreditation plays a vital role in ensuring that products and businesses align with international standards, boosting consumer trust and trade reliability. Proposed amendments to the Kenya Accreditation Service Act empower KENAS to accredit foreign Conformity Assessment Bodies (CABs) operating in Kenya. This will not only ensure CABs align with our regulatory standards but also incentivize foreign bodies to set up local offices, reinforcing Kenya’s accreditation framework. Additionally, a new accreditation levy—3% of the value of accredited assessments—will help expand accreditation services, supporting businesses through efficient, credible evaluations.
To further strengthen the business climate, the government is prioritizing consumer protection and fair trade by reducing energy costs, streamlining regulatory processes, and creating a stable taxation framework. These policies are designed to reduce the operational burden on businesses, enhance market access, and improve Kenya’s ease of doing business. This commitment to high consumer protection and fair trade standards underpins Kenya’s ambition for sustainable economic growth.
Key initiatives, including the establishment of the National Investment Council, the One Start One Go Centre, and the World Bank’s B-READY initiative, reaffirm Kenya’s alignment with international benchmarks and dedication to being a top investment destination. By supporting small and medium enterprises (SMEs) and addressing high informality rates—currently at 79%—we are promoting an inclusive economic model that empowers SMEs to thrive and contribute to national economic development.
Kenya has made notable strides, yet there is more to achieve. By championing reforms and collaborating with private-sector partners, we are positioning Kenya as an investment-friendly, resilient economy. The reforms are crafted to create an environment where businesses can thrive, unlocking opportunities for innovation, job creation, and sustained growth.
The government remains resolute in its commitment to fostering a supportive business landscape. Through these targeted reforms, Kenya is set to emerge as a model for economic excellence and promise on the continent, fully aligned with the goals of Vision 2030 to create a prosperous, high-quality life for all Kenyans. Together, we can shape a resilient and thriving future.
Dr. Mukhwana is the Principal Secretary in the State Department for Industry