, NAIROBI, Kenya, Oct 31 – Kenya has gone up 19 places to 61 in World Bank ease of doing business 2019.
The report that was released Wednesday ranks the country as the Seventh most improved country globally.
Kenya strengthened access to credit, protection of minority investors and ease of paying taxes by merging all permits into a single unified business permit.
Kenya also made resolving insolvency easier by facilitating the continuation of the debtor’s business during insolvency proceedings, providing for equal treatment of creditors in reorganization proceedings and granting creditors greater participation in the insolvency proceedings.
However the country struggled with construction permits, registering property and starting a business which remains a cumbersome process in Kenya.
“It costs 25 percent of the income per capita to start a business in Kenya which is almost ten times more expensive than in cote d’voire and the process takes 23 days compared to just four days in Rwanda,” the report states.
According to the report, despite a reform in the past year to make registering property easier, a business has to go through nine procedures to affect a property transfer, compared to an average of six procedures in the region.
Last year, Kenya has moved 12 places in Ease of Doing Business 2018 to position 80 globally out of 190 countries compared to position 92 in the 2017 report.
The improvement was mainly helped by reforms in starting a business, dealing with construction permits, getting electricity, access to credit, paying taxes and trading across borders.
The country was ranked the third position in the continent behind Mauritius and Rwanda.
Improvements in global rankings are intended to increase the level of efficiency for businesses and increase the level of both local and Foreign Direct Investment which has a positive impact on Job creation.
The country has a target to reach top 50 by 2020.
New Zealand is ranked the first position followed by Singapore and Denmark while Somalia emerged the worst followed by Eriteria and Venezuela.
Afghanistan was the most improved economy followed by Djibouti and China.
The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies in the Doing Business sample since 2005.
An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance.
The ease of doing business ranking ranges from 1 to 190.