The Government, through the State Department for Trade, is preparing a bill aimed at addressing bottlenecks and improving Kenya’s business environment.
The draft legislation, currently under public participation, is titled the National Trade Development Bill, 2025, and seeks to establish a comprehensive legal and institutional framework to guide the development, regulation, and promotion of trade across the country.
The bill was initiated following a roundtable meeting President Ruto held with the private sector in August 2025, where businesses highlighted challenges affecting the trade environment.
During a public hearing in Kisumu, the head of legal services at the State Department of Trade Mr. Robert Kungu read a speech on behalf of Principal Secretary for Trade Ms. Regina Akoth Ombam.
The PS described the bill as a landmark framework positioning trade as a key driver of economic growth, industrialization, digital transformation, and global competitiveness. The bill also seeks to strengthen coordination between national and county governments and the private sector on trade-related matters.
Rooted in the Kenya Trade Remedies Act 2017, which emphasizes efficient domestic markets and export-led growth, the draft bill aims to modernize Kenya’s trade laws to create a more robust, inclusive, and competitive environment aligned with the country’s economic vision.
Key proposals include the establishment of a National Trade Council to guide trade policy and oversee the implementation of national strategies, and the creation of a National Trade Development Academy to build capacity in trade and digital commerce. The draft also introduces reforms to enhance competitiveness, harmonize licensing systems, and reduce duplicative permits.
Further, the bill strengthens export development, supports manufacturing growth, and proposes the development of a National Trade Portal to provide integrated trade information, market intelligence, and licensing data.
Once enacted, it is expected to create a predictable, fair, and competitive trade environment, encourage fair trade practices, support women and youth participation, and harmonize Kenya’s international trade engagement.
Public participation is central to the process. Stakeholders including farmers, businesses, youth, women, civil society, private sector players, and county governments are encouraged to contribute views to ensure the legislation reflects the needs of Kenyans. Article 118 of the Constitution mandates Parliament to facilitate public hearings to include citizen input in lawmaking.
The public hearings, which began on February 3, 2026, will conclude on Wednesday, February 11, 2026, with sessions held across the country.
Mr. Israel Agina, Chairman of the Kenya National Chamber of Commerce, Kisumu chapter, welcomed the bill but highlighted areas requiring careful attention. He expressed concern that the draft vests significant powers in the Principal Secretary for Trade, potentially reducing county involvement and urged for greater stakeholder participation in the National Trade Council and National Technical Trade Committee to ensure trade-focused rather than administration-driven governance.
Agina also noted challenges related to cross-county trade, where traders paid multiple licenses while transporting goods. In response, Kungu said the bill seeks to harmonize trade systems, reduce double taxation, and strengthen inter-county trade.
A Ministry of Cooperatives and MSME Development report highlights that MSMEs employed over 15 million Kenyans, representing 85 percent of the non-farm workforce, and contribute nearly 40 percent of GDP. Many unlicensed businesses, estimated at 57.8 percent of all MSMEs, face challenges accessing affordable credit.
If enacted, the National Trade Development Bill, 2025 is expected to address these gaps, modernize Kenya’s trade framework, promote inclusive growth, and create a conducive environment for business expansion and investment.
By Mabel Keya–Shikuku
