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The President notes that amending the law in the manner proposed in the Bill will negate a long-standing principle of contract law, prejudice the financial sector, and adversely affect credit advanced to micro, small and medium enterprises/FILE

Kenya

Ease of doing business appears favorable on paper; things are however different on the ground – BBI

President Kenyatta reading the report. The report admits to bureaucracy saying that it is matter of who you are, who you know and where you live when it comes to starting and thriving in a business/PSCU

NAIROBI, Kenya, Nov 27 – Starting and doing business in Kenya, particularly for youth-led small businesses, is an invitation to innumerable obstacles, unlike in other countries where entrepreneurs are encouraged and assisted to venture.

This is according to the Building Bridges Initiative report which has been unveiled to the public this morning.

The report admits to bureaucracy saying that it is matter of who you are, who you know and where you live when it comes to starting and thriving in a business.

“There are irrational incentives against innovation, growth and job creation, together with too many Kenyans lacking decent income and investment in Kenya being frustrated by persistent gatekeeping and rent-seeking by those in Government,” says the report.

“Kenyans speaking in every consulting session led by the Taskforce, in every County, spoke of their problems fed by poverty and joblessness or underemployment. They complained of Government not facilitating their ventures through the provision of an environment that is conducive to doing business, and of being left to suffer in the hands of brokers.”

This finding is in contradiction with World Bank’s Ease of doing business findings which has been placing Kenya favorably on a sustained multi-year reform effort.

This includes the enactment of several laws such as the Companies Act, the Insolvency Act, Business Registration Act, Movable Property Act and automation of various processes.

The index however cautioned Kenya on its slow registration of property and starting a business remain the biggest hindrance.

Kenya was ranked 56 on the Ease of Doing Business index 2020 from last year’s 61 out 190 countries.

Overall, Kenya’s Doing Business ranking has improved five places this year to rank at position 56 globally, the World Bank said in its latest report, which also shows that slow registration of property and starting a business remain the biggest hindrance.

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The country targets position 30 in the next two years, despite being on worse than the average score in about three out of the 10 parameters assessed by the World Bank.

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