Kenya, Third Most Improved Nation in Business Regulatory Reforms

In the World Bank’s annual ranking, Kenya was ranked 108, 28 places up from 136 in the previous year. This great improvement has been attributed to the improvements made in the number of days investors take to start a business, register property and access credit.

According to official from World Bank, the creation of Huduma Centres that have brought different government services in one place largely influenced the country’s performance.

The ranking leaves Kenya as the 9th most competitive economy in Africa from 17 the previous year overtaking Tanzania, Ghana and Ethiopia.

According to Mr Oumar Seydi, the regional Director of IFC, the creation of the centres have helped accelerate the pace of reforms, removing some of the red tape that investors have been struggling with in their bid to access public services.

The ranking places Kenya as the third most improved nation in business regulatory reforms among 189 economies However, the country still lags behind Rwanda, South Africa, Swaziland, Botswana and Mauritius on the continent.

The economy is struggling with rising interest rates and a government weighed down by debt brought about by too many large projects, corruption and a tendency to waste public resources.

Rwanda was ranked 62 a slight drop from 55 the previous year and it takes six days to register and start a business where else in Kenya it takes 26 days.

Difficulties in acquiring construction permits has affected the country’s overall ranking, According to the reports, credit rating improved as a result of the introduction of credit reference bureaus that allow financial institutions to assess the creditworthiness of companies and individuals.

A reduction in electricity connection procedures, which cut the number of days it takes to connect a business to power from 158 to 110 days, also gave Kenya a boost.

In the starting-a-business indicator, reforms have reduced the number of days it takes to register a business from 30 to 26.

In the registering-property category, automation of records at the Land ministry registries was noted for reducing customer interaction points and spurring efficient services.

Kenya also introduced a number of reforms involving stamp duty, property transfers and access to credit, says the report. However, the country still scores poorly in the assessment of whether regulations facilitate or impede start-ups and daily operations.