Traders across the country are set to benefit from easier business operations with the implementation of the County Licensing (Uniform Procedures) Act, 2024.
According to Regulatory Reform Specialist at Ministry of Investments, Trade and Industry Cyrus Kimaru the legislation aims to standardize licensing procedures across all 47 counties, eliminating the current inconsistencies and bureaucratic hurdles that often hinder business growth.
Kimaru noted that the State Department for Investment Promotion (SDIP), in collaboration with the Council of Governors (COG) and key stakeholders, is currently developing comprehensive regulations and guidelines for the effective implementation of the Act.
Speaking during a public participation forum to educate traders on provisions of the Act that brought together participants from Nakuru, Nyandarua, Laikipia and Kericho counties, the official indicated that successful implementation of the County Licensing (Uniform Procedures) Act, 2024, will be a crucial step towards creating a more business-friendly environment in Kenya and unlocking the country’s economic potential.
He affirmed that the new legislation targeted to improve the working environment for business people and traders at the county level by creating an equal and efficient means of paying for licenses across all counties.
The meeting brought together stakeholders from county governments, private institutions and micro and small enterprises to discuss the proposed amendments to the implementation of the Act.
Kimaru assured that the new legislation will simplify business licensing, reduce bureaucracy and improve the movement of goods and services across counties.
He pointed out that the successful implementation of the County Licensing (Uniform Procedures) Act, 2024, will be a crucial step towards creating a more business-friendly environment in Kenya and unlocking the country’s economic potential.
He affirmed that the new legislation targeted to improve the working environment for business people and traders at the county level by creating an equal and efficient means of paying for licenses across all counties.
“When devolution came into place in the country it did not provide a uniform way of licensing traders thus licensing procedures, methods and fees vary from one county to the other. You therefore find people who transport goods from a county like Mombasa end up paying a lot of fees which makes trading very expensive in the country,” Kimaru said.
He noted that sometimes business people could own similar businesses in different counties but are charged differently even owning different licenses which contributes to the country being ranked low in terms of trading.
Kimaru indicated that the law serves to direct the county government to come up with regulations that will serve within those specific counties.
He said the law is beneficial to the consumer and the government as it will ease the cost of doing business and further enable young people to get licenses at affordable prices.
“You find that in some sectors like the food sector, business people are charged for multiple licenses like hygiene, sanitation and a single business permit which is expensive to a business owner, especially startups who end up making losses,” he noted.
Among the areas where the county assemblies may enact further legislation on this Act include singular license application framework, categorization of licenses, forms of license application and fee payment or refund for the applications.
The forum sought to educate participants on the legislation, gather public views and receive recommendations from representatives of private institutions as well as micro and small entrepreneurs on the implementation of the law.
Kimaru said the County Licensing (Uniform Procedure) Act seeks to establish a cost-effective licensing system that benefits traders as well as the National and County Governments. He noted that the Act provides permits that allow traders to operate within county borders.
He further explained that the Act proposes a single application process in which a trader would apply once for multiple licenses, instead of submitting separate applications for each business owned.
Nakuru County Trade Officer John Macharia said the statute would help remove bureaucracy in trade, especially in the movement of goods and services across counties, and could help address Cess charges imposed on goods.
He added that the Act allows consultation with relevant agencies responsible for standards to ensure that goods and services meet the required quality standards.
The County Licensing (Uniform Procedure) Act came into law on June 28, 2024, and was implemented on December 28, 2024.
Macharia pointed out that attracting and retaining investments entailed businesses partnering with the county government to enhance development through building infrastructure, restoration of natural resources and offering productive jobs in order to raise the living standards for every resident throughout the devolved unit.
He assured the business community that the law will significantly improve service delivery to the business community by eliminating unnecessary bureaucratic processes.
Macharia noted that although counties may continue to have different regulations and licensing charges depending on their local circumstances, the application procedures and guidelines will be standardized across the country.
“The objective is to make doing business easier. A business owner should not have to move from one office to another seeking different permits. Through a single application process, entrepreneurs will be able to apply online from wherever they are and receive their licenses within a short time,” said Macharia.
He assured investors that the County Government of Nakuru has embarked on various plans to boost the region’s attractiveness to investors, starting with reforms in the tax regime through harmonization of fees and elimination of non-tariff barriers to trade.
The devolved unit’s administration Macharia indicated was reviewing a multiplicity of levies and taxes that are affecting the devolved unit’s intra-county and inter-county trade thereby discouraging investments while raising prices for the end consumer.
Nakuru, regarded as a key food basket in Rift Valley, also seeks to lure investors to its vibrant agricultural sector to add value to its products and gain direct sales of its farm produce to foreign markets including East African countries. The county is one of the leading producers of potatoes, carrots, milk and vegetables among other crops.
The county, noted the Trade Officer, was further committed to averting situations where businesses incur costs in multiple permits and licenses over and above the single business permit.
“We are taking deliberate steps to reduce the cost of doing business and position Nakuru as an essential destination for local and foreign investments. As a county government, we are committed to actively pursuing interventions that will make Nakuru the economic powerhouse of the region, thereby making it the destination of choice where trade and investment thrive,” assured the official.
He indicated that Governor Susan Kihika’s administration had identified its trade and investment prospects, adding that it was pursuing active partnerships to unlock its potential.
Macharia observed the one-stop licensing system proposed by the Act will also help eliminate fraudsters who often masquerade as county licensing officers to extort money from unsuspecting traders.
“The county government will continue working closely with the national government to ensure businesses receive services efficiently while protecting them from exploitation by individuals pretending to issue licenses,” he said.
The proposed law seeks to simplify licensing by introducing a single universal application process that allows businesses requiring multiple county licenses to submit one application instead of visiting several offices.
The Act further requires county governments to ensure licensing systems remain transparent, efficient, cost-effective and accessible while protecting consumers and ensuring businesses have access to clear information regarding licensing requirements.
Participants were informed that every county will establish a County Licensing Board responsible for overseeing licensing procedures, preventing multiple licensing, facilitating simultaneous applications and ensuring applicants are accorded fair opportunities during the licensing process.
The Boards will comprise representatives from county trade and revenue departments, the national government, persons with disabilities and sub-county administrators to promote accountability and inclusivity.
The Act also obligates county governments to ensure licensing fees are not prohibitive, protect consumers and service providers, promote market regulation, maintain quality standards for goods and services, and assign unique codes for every category of license issued.
Stakeholders further heard that licensing authorities will be required to adhere to prescribed timelines for processing applications and embrace digital systems that make services more efficient and transparent.
The reforms seek to transform licensing from an administrative hurdle into an investment facilitation tool.
“The proposed amendments seek to strengthen the legal framework by promoting greater transparency, consistency, efficiency, accountability and digitalization of county licensing processes,” the Trade Officer said.
He added that simplifying county licensing procedures is a strategic investment that will boost Kenya’s competitiveness, strengthen investor confidence, support MSMEs, create jobs and drive long-term economic transformation while respecting the constitutional mandate of county governments.
The public participation exercise gave stakeholders an opportunity to present recommendations that will be considered before the amendment Bill is finalized and submitted for the legislative process.
The nationwide consultations are expected to contribute to the establishment of a more predictable, transparent and investor-friendly licensing framework, reducing regulatory uncertainty while enhancing service delivery across all 47 counties.
According to the World Bank, reducing regulatory barriers and simplifying business licensing encourages entrepreneurship, attracts private investment and stimulates economic growth by lowering the cost of doing business.
The International Finance Corporation (IFC) also notes that streamlined licensing and regulatory reforms enable small enterprises to formalize their operations, improve access to credit and participate more competitively in domestic and regional markets.
In Kenya, Micro, Small and Medium Enterprises (MSMEs) remain the backbone of the economy. According to the Kenya National Bureau of Statistics (KNBS), the sector accounts for more than 90 per cent of all business establishments and provides employment to millions of Kenyans, making it one of the country’s largest sources of jobs and household income.
The Ministry of Investments, Trade and Industry has identified regulatory reforms and reduction of the cost of doing business as key pillars in strengthening Kenya’s competitiveness under the Bottom-Up Economic Transformation Agenda (BETA).
The ministry maintains that harmonized licensing systems can accelerate enterprise growth, facilitate trade and attract new investment across counties.
The African Continental Free Trade Area (AfCFTA) also emphasizes the importance of reducing non-tariff barriers and simplifying administrative procedures to enhance trade and unlock economic opportunities for businesses across Africa.
Experts observe that harmonized licensing systems at the county level complement these broader regional trade objectives by making it easier for enterprises to operate beyond their local jurisdictions.
By Jane Ngugi and Jefther Afuyo
