Africa Economy: Kenya says raft of measures in place to transform economy

The Kenyan government said Wednesday it has instituted a raft of measures in place that will transform the economy.

Deputy President William Ruto said recent efforts to step up the reforms agenda across the regulatory and legal indicators coupled with implementation of the on-going reforms will help boost the economy and attract foreign investors.

"While we celebrate this significant progress, Kenya is confident that the monumental series of acts and bills signed recently will transform Kenya's business climate by improving the ease of doing business further as well as suit the needs of modern business in a way boosting our on-going efforts to in the next index," he said in Nairobi during the launch of the World Bank report.

Ruto said the government is committed to improving the business environment to attract investment, create jobs and wealth.

"We seek to position Kenya as the continents' manufacturing and technology hub, the preferred gateway to Africa for domestic and foreign investors. These noble ambitions have in the past been undermined by unfavorable business environment which has hindered Kenya's goal," he added.

Ruto said the government has put in place an elaborate program to make Kenya's business sector more productive and globally competitive.

"We have registered improvements in starting a business by making it easier to assess and pay stamp duty," he said.

Ruto said the country has made property transfers faster by improving document management at the land registry and introducing unified form for registration.

"We have improved access to credit information by passing legislation that allows the sharing of positive information and expanding borrower coverage," said the Deputy President.

The World Bank's Doing Business Report 2016 ranked Kenya third globally among the most improved countries on ease of doing business.

The report finds that Kenya has implemented at least four regulatory reforms in each indicator aimed at making it easier for local entrepreneurs to do business in the country in 2015/16, a higher percentage than any other country in any other region.

It is the first time Kenya's position has improved since its downward spiral from its 71st position in 2006 following the post-election crisis, a vindication of the quality of reforms instituted by the Kenyan government.

Industrialization Cabinet Secretary Adan Mohammed said Kenya has instituted reforms in the areas of getting credit, reduction of electricity, starting business and faster and transparent registration of property.

"Getting electricity, credit, starting business and transparent registration of property have made it easier to do business in Kenya. This situation has attracted local and foreign investors," Mohamed said.

He said the government has also established a single command system and operationalized the 24/7 customs operations at the Mombasa Port.

"This has enhanced service delivery and improved the turn-around time at the Port and it now takes 2 days to clear imports and 1 day for exports," said Mohamed.

World Bank Group Regional Director East and Southern Africa Director Oumar Seydi hailed the steps being taken by Kenya in improving its economic situation.

"On behalf of the World Bank Group, I wish to commend Kenya for the tremendous reforms it has undertaken that have made it easier to doing business in the country," said Seydi.

"The digitalization of process in the registration of property has for instance has made it easier and efficient. This can attract investments into the country," he added.

Seydi said World Bank Group would continue working closely with Kenya in accelerating the development process with a view to improving the living standards among its people.

Department for International Development (DFID), Kenya Country Representative Lisa Philips hailed the steps being taken by Kenya to improve its economic situation.

"It is impressing that Kenya has taken steps to create enabling environments for both local and foreign investors," said Philips.

"An enabling environment in this country has led to increase in foreign and local investments as well as creation of job opportunities," she added.

She said the ongoing crusade by the Government in the fight against corruption was commendable.

Kenya Private Sector Alliance (KEPSA) CEO Carole Kariuki called for closer working relationship between the Government and the private sector in the development process.

"We will continue to engage with the government on matters of development so as to create more employment opportunities and reduce poverty levels," said Kariuki. Endit