By N, KNA
The business community in the country has welcomed government plans to promote regional trade to open up more economic opportunities to local players
Stakeholders including representatives from Kenya’s private sector and foreign diplomats, also recommended that state actors must fast track the settlement of pending bills, expanded regional trade, procurement reforms and strengthen public-private collaboration.
The calls were made in Nairobi, when the Kenya National Chamber of Commerce and Industry (KNCCI) marked 60 years of business advocacy, where speakers fronted for a more collaborative approach to facilitate growth in the sector.
Principal Secretary for Trade, Regina Ombam however challenged players in the private sector to up their game to cope with the ever dynamic trends in the global market, saying it was time to rethink their approach to survive the turbulence.
Ombam expressed fears that the global ecosystem had shifted tremendously, citing that intra-Africa trade currently stood at about 15 percent, while intra-East African Community segment was struggling at approximately 20 percent, calling for stronger engagement under the African Continental Free Trade Area (AfCFTA).
“We really need to up our game in this market, so that we actually trade more with our neighbours, before we even start thinking out there,” she said.
The PS emphasized the importance of value addition, diversification and improved market access awareness, urging traders to better understand international market requirements.
She also called on KNCCI to strengthen its governance and accountability structures, saying institutional leadership and trust are essential for credibility and effectiveness.
“It is leadership that helps you drive whatever you are driving in a good way, once there is trust in a system, there is really nothing to worry about,” she said.
On his part, Public Investments and Assets Management PS, Cyrell Odede said the National Treasury is prioritizing macroeconomic stability, improved public finance management and stronger public-private partnerships.
“The National Treasury continues to strengthen the framework for public-private partnerships as a key instrument for mobilizing private capital, accelerating infrastructure development and improving service delivery,” Odede said.
He confirmed that Sh255 billion has been released toward settling pending bills, acknowledging that delayed government payments have constrained liquidity, particularly among Micro, Small and Medium Enterprises (MSMEs).
“Pending bills have for too long constrained business liquidity,” the PS said.
Odede outlined three government priorities: verification and settlement of legitimate claims, clear payment timelines, and structural reforms to prevent future arrears.
He highlighted the Electronic Government Procurement (e-GP) system, launched in July 2025, saying it is expected to reduce procurement costs, increase transparency, and improve efficiency across public institutions.
“Success in rollout of the e-GP system is dependent on suppliers and government,” he said, adding that supplier training will begin this month in partnership with KNCCI.
Odede invited businesses to participate in the Kenya Pipeline Company Initial Public Offering (IPO), noting that 20 percent of the company’s shares will be available to the public at Sh9 per share.
“This IPO will broaden ownership, enhance transparency, and enable the company to raise long-term capital without placing pressure on public finances,” he said.
KNCCI President Dr. Erick Rutto said the chamber represents over 60,000 companies nationwide, with indirect reach to more than two million MSMEs.
He said pending bills remain a major concern, noting that around 70 percent of verified pending bills are owed to SMEs at both national and county government levels.
“We applaud the step of paying Sh255 billion, but liquidity among SMEs has been affected. We urge faster settlement of pending bills,” Rutto said.
He welcomed the rollout of the electronic government procurement system, saying KNCCI has launched a supplier and contractor training programme to improve participation in public tenders.
Rutto said the chamber has engaged government on expanding bilateral market access, including recent developments on China trade arrangements.
He also urged authorities to ensure local investors are not crowded out in privatization programmes, including the Kenya Pipeline IPO.
On the African Growth and Opportunity Act (AGOA), Rutto said Kenya benefits from US market access, but needs stronger production capacity.
“Approximately 80 percent of Kenya’s exports to the US involve SME-linked value chains,” he said, adding that only nine Kenyan products currently have sufficient local capacity out of more than 6,000 AGOA-eligible product lines.
Saudi Arabia’s Ambassador to Kenya, Khalid Bin Abdullahi said trade between the two countries exceeds $600 million, with Kenya exporting tea, coffee, fresh produce and other agricultural products.
“Let us expand value-added exports and partner in agribusiness, logistics, energy, manufacturing, technology, and services,” he said.
He proposed stronger engagement through the Saudi-Kenya Business Council and increased private sector collaboration.
German Ambassador to Kenya Sebastian Groth said more than 120 German companies operate in Kenya, many using the country as an entry point into the East African market of over 450 million people.
“More and more German companies are using Kenya as an entry point for the East African market,” Groth said.
He highlighted Germany’s support for technical and vocational education and training (TVET), noting that about 13,000 Kenyan students are enrolled in German-supported institutions, and pointed to cooperation in manufacturing, renewable energy, digital services, agriculture, and healthcare equipment.
Groth cited investor concerns over bureaucracy, regulatory pressure, taxation and corruption, calling for continued business climate reforms.
“We need stability, predictability and fairness not only between countries, but also within them,” he said.