Ministry Unveils Reforms to Boost Business Environment in Kenya. The Ministry of Investment, Trade, and Industry has rolled out de-regulatory reforms to enhance Kenya’s business landscape by addressing private sector needs.
Initiatives to Foster a Competitive Environment
Cabinet Secretary for Investment, Trade, and Industry Salim Mvurya highlighted the ministry’s efforts to create a favorable business climate. He reported that over the past two years, the ministry had collaborated with the private sector, achieving legal and regulatory milestones such as amendments in the Finance Act, 2023, the Finance Bill, 2024, and the newly enacted Business Laws Amendment Act, 2024.
Additionally, Mvurya outlined achievements in stabilizing Kenya’s macroeconomic environment, mentioning that the exchange rate had improved from Sh160 to Sh129, while inflation dropped significantly from 9.6 percent to 2.7 percent.
Industrial and Trade
Mvurya detailed progress in industrial infrastructure, including operationalizing Special Economic Zones (SEZs) in Dongo Kundu and Naivasha, initiating six Export Processing Zones (EPZs) flagship projects, and establishing 19 County Aggregation and Industrial Parks. He also announced access to preferential trade markets under the African Continental Free Trade Area (AfCFTA), the United Kingdom (UK), the European Union, and the United Arab Emirates.
Addressing Challenges Facing Distressed Companies
Despite these advancements, Mvurya acknowledged challenges faced by distressed companies. The ministry’s engagements revealed that over-regulation remains a costly impediment. To tackle this issue, the ministry, through the State Department for Investment Promotion, initiated a De-regulation Reform Agenda.
A 10-member task force, led by a private sector representative and comprising members from organizations such as the Kenya Private Sector Alliance (KEPSA), the Kenya Association of Manufacturers (KAM), and the Kenya National Chamber of Commerce (KNCCI), has been appointed. The team is tasked with identifying regulatory burdens and proposing solutions between January and March 2025.
Blueprint for Future Reforms
Mvurya stated that the task force’s findings would form the basis of a Cabinet paper aimed at fostering a business-friendly environment. He reiterated the ministry’s commitment to supporting investments and aiding distressed businesses, emphasizing that these reforms are part of broader efforts to strengthen Kenya’s economic competitiveness and resilience amidst global and domestic challenges.
This renewed approach underscores the ministry’s dedication to sustainable economic growth and the private sector’s central role in driving Kenya’s development.
