Kenya’s commerce and economy seems to be making huge steps in business.This is according to World Bank report released on Ease of doing business for the year 2018. Kenya is ranking top 100 at position 80 out of the 190 assessed. The news come with a lot of relief for Kenya going up 12 rank higher than the previous year on its ease of doing business from 92 to 80. This move has been the highest since 2008 when it was ranked 84.
The new rank make Kenya as the third most competitive economy in Africa after Mauritius (25th) and Rwanda (41st) and the first in East Africa.
The report claims that Kenya as a country has made remarkable strides in streamlining conditions for commerce.
The improvement has been attributed to great and huge reforms that are deemed necessary for the thrive of business. These factors includes: approvals of construction permits, new registration of property, ease of border clearance among others that seems to have improved.
However, with all the great improvement and strides made, the World Bank highlighted some weak points in Kenya’s efforts to provide a smooth environment for business. Some of these include: long transaction period for property transfer which World Bank states that it takes a minimum of 61 days to complete a property transfer in Kenya. This is quite long as compared to its competitor Rwanda that takes at-least 7 days to do the same. Corruption in Kenya in regards to starting a business, dealing with construction permits, registration of property and trading across borders has also been ranked as a great weak point.
Procedures for applying for land rent clearance certificate also takes lengthy time for processing.
Other procedures such as obtaining a survey plan, a project report from an environmental expert, and approval of the environment impact among others have been singled out as the major contributors in the lengthening of construction and start up processes.
Despite all these challenges, Kenya seems to be heading in the right direction. The country’s economy is projected to grow exponentially once the turbulence of the politics stabilize.
We congratulate Kenya for the milestones. Indeed the improvement is a plus for the country’s economy and particularly the international investors.