Corruption, biggest hurdle for doing business in Kenya – WEF Report

Kenya’s performance in the 2017-2018 World Economic Forum Global Competitiveness Index (WEF GCI) improved by  5 positions from the 2016-2017 WEF GCI results, to rank at 91 globally out of 137 economies and 6 within the continent.

However, Corruption tops the list as ‘Most problematic factors for doing business’ followed by Access to financing, Tax rates, and Inadequate supply of infrastructure hurdles in progress, prosperity and betterment of the country.

“…elections in 2017 in Rwanda, Kenya, Liberia, and the Democratic Republic of Congo have increased volatility and uncertainty in the African business environment,” reads part of the report.

“These negative trends have been partly compensated by improvements in infrastructure, health, technological readiness, and business sophistication, although Africa remains below the global average in these areas.”

Read: 

• Corruption and Food Security Among Major Issues Affecting Kenya
• Corruption is Real and the Government has a Budget for It
• Corruption: Kenya’s Peculiar Problem is Impunity

The Global Competitiveness Index Report assesses the competitiveness landscape of 137 economies, providing unique insight into the drivers of their productivity and prosperity.

The report notes that “On average, sub-Saharan Africa’s competitiveness has not changed significantly over the past decade: while a little ground was gained between 2011 and 2015, it has been partially lost again over the past two years.”

Only four countries (Ethiopia, Senegal, Tanzania, and Uganda) have improved their performance for five consecutive years since 2010.

In Africa, Mauritius is again the most competitive country at 45th in the overall GCI, with its main rivals falling back: South Africa drops 14 places to 61st and Rwanda drops seven places to 58th.

The report states that restoring macroeconomic stability and institutional trust are short-term priorities to reignite competitiveness and growth in Africa. “In the long run, continued investment in infrastructure, human capital, and technology adoption will be needed to reduce productivity gaps.”