Kenya is banking on a raft of policy and regulatory reforms to improve the investment climate in the country amid slowdown occasioned by a prolonged electioneering period, a senior official said on Wednesday.
Cabinet Secretary for industry, trade and cooperatives Adan Mohamed said that Kenya has made a drastic improvement in ease of doing business thanks to institutional reforms that have eliminated red tape and unethical practices.
“Kenya represents a bright spot in Sub-Saharan Africa as an investment hub for domestic and foreign investors. Recent data on global economic activity and reputable global surveys have endorsed this assertion,” Mohamed said in a commentary published by the Star Newspaper.
The government has adopted global best practices to boost trade and investments that are critical to stimulate economic growth and job creation.
Mohamed said that comprehensive reforms implemented by an inter-agency taskforce have accelerated private sector led investment in strategic sectors of the economy.
“We have undertaken numerous business reforms-the most on the continent. Benchmarking on competitive global best practices, Kenya diagnosed its regulatory business environment and found the need to rid it of red tape, which hinders entrepreneurship and creativity,” said Mohamed.
Mohamed disclosed that in 2016 and 2017, Kenya emerged as the third most reformed country in Sub-Saharan Africa thanks to re-engineering of business processes.
He noted that out of eleven indicators used to measure ease of doing business, Kenya undertook six reforms that focused on timely issuance of business license and approval from environmental watchdog.
“Reliable power supply, access to credit, online tax payment and faster clearance of goods at the ports through the single window system has improved the business climate in the country,” said Mohamed.
He added that Kenya aims to be among 50 nations with a favorable legislative and regulatory framework for conducting business by 2020.
Mohamed revealed that business reforms have increased the levels of foreign direct investments in Kenya since 2013 when President Uhuru Kenyatta took power.
“Kenya is one of the most preferred investments destinations in Africa. The foreign direct investment levels have risen from 390 million U.S. dollars in 2013 to 2 billion dollars in 2016,” said Mohamed.
He added that Kenya was registering 200 businesses daily thanks to elimination of burdensome regulations. Enditem