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Nairobi, Kenya – The Ministry of Investment, Trade, and Industry has announced a series of de-regulatory reforms designed to improve Kenya’s business environment, with a particular focus on easing burdens on the private sector.
The announcement was made by the Cabinet Secretary for Investment, Trade, and Industry, Salim Mvurya, during an event held on Thursday.
Mvurya outlined the government’s ongoing efforts to create a more conducive and competitive business climate, highlighting the importance of collaboration between the public and private sectors. “In the past two years, we have actively collaborated with the private sector on business reforms,” he said. This partnership has resulted in significant legal and regulatory advancements, including key provisions in the Finance Act of 2023, the Finance Bill of 2024, and the newly enacted Business Laws Amendment Act of 2024.
One of the most notable achievements highlighted by Mvurya was the stabilization of Kenya’s macroeconomic environment. He revealed that the government had successfully reduced the exchange rate from Sh160 to Sh129, alongside a reduction in inflation from 9.6 percent to 2.7 percent.
The Cabinet Secretary also reported progress in the country’s industrial infrastructure. Key developments include the operationalization of Special Economic Zones (SEZs) in Dongo Kundu and Naivasha, six flagship projects under Export Processing Zones (EPZs), and the establishment of 19 County Aggregation and Industrial Parks.
Further expanding Kenya’s trade opportunities, Mvurya announced the opening of preferential markets under the African Continental Free Trade Area (AfCFTA), as well as new agreements with the United Kingdom, the European Union, and the United Arab Emirates.
Despite these successes, Mvurya acknowledged the ongoing challenges faced by some businesses, particularly those struggling with over-regulation. “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.
To address these concerns, the government has launched a new De-regulation Reform Agenda aimed at reducing unnecessary regulatory burdens. Mvurya appointed a 10-member task force, chaired by a representative from the private sector, to oversee the initiative. The task force includes representatives from key industry bodies such as the Kenya Private Sector Alliance (KEPSA), the Kenya Association of Manufacturers (KAM), and the Kenya National Chamber of Commerce (KNCCI). The team will work over the next few months, from January to March 2025, to identify regulatory hurdles and propose solutions to streamline the business environment.
The recommendations from the task force will form the basis of a Cabinet paper that will aim to further support businesses and promote a more business-friendly regulatory framework.
“As we move forward, 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,” Mvurya concluded.
This reform initiative signals a renewed push by the government to enhance Kenya’s economic competitiveness, ensuring the country remains resilient amid evolving global and domestic challenges.
