The Ministry of Investment, Trade, and Industry has introduced de-regulatory reforms aimed at improving Kenya’s business environment through the private sector.
Speaking at the event on Thursday, the Cabinet Secretary for Investment, Trade, and Industry, Salim Mvurya, outlined his ministry’s initiatives to foster a conducive and competitive business environment.
“In the past two years, we have actively collaborated with the private sector on business reforms,” Mvurya stated, adding that this engagement has resulted in several legal and regulatory advancements, including provisions in the Finance Act, 2023, the Finance Bill, 2024, and the recently enacted Business Laws Amendment Act, 2024.
Mvurya highlighted notable achievements in stabilizing Kenya’s macroeconomic environment, revealing that the government had stabilized the exchange rate, reducing it from Sh160 to Sh129, and successfully lowered inflation from 9.6 percent to 2.7 percent.
The CS also noted progress in industrial infrastructure, including the operationalization of Special Economic Zones (SEZs) in Dongo Kundu and Naivasha, six flagship projects under Export Processing Zones (EPZs), and 19 County Aggregation and Industrial Parks.
He further announced the opening of preferential trade markets under the African Continental Free Trade Area (AfCFTA), the United Kingdom (UK), the European Union, and the United Arab Emirates.
While addressing distressed Companies, he noted that despite the strides, the reports acknowledge distress among some companies and after engagements with affected businesses, over-regulation emerged as a significant challenge.
“The Ministry, through the State Department for Investment Promotion, has engaged with distressed companies to understand the root causes. One of the main issues identified is over-regulation, which is costly,” he said.
He announced the launch of a De-regulation Reform Agenda to address this issue and appointed a 10-member task force, chaired by a representative from the private sector.
The task force comprises members from key industry bodies, including the Kenya Private Sector Alliance (KEPSA), the Kenya Association of Manufacturers (KAM), and Kenya National Chamber of Commerce (KNCCI), among others. They will work from January to March 2025 to identify regulatory burdens and propose solutions.
At the same time, he stated that the task force’s recommendations would serve as the foundation for a Cabinet paper aimed at fostering a more business-friendly environment.
“I reaffirm my commitment not only to promote and facilitate investments but also to support businesses in distress for the sustainable growth of our economy,” said the CS.
He also emphasized that the Ministry’s proactive approach signals a renewed effort to enhance Kenya’s economic competitiveness and resilience in the face of evolving global and domestic challenges.
By Sharon Atieno
