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Stakeholders back proposed reforms to streamline county business licensing

Business leaders, county officials and members of the public from West Pokot, Trans Nzoia and Turkana counties have welcomed the government’s efforts to streamline business licensing through proposed amendments to the County Licensing (Uniform Procedures) Act, 2024, describing the reforms as a major step towards improving Kenya’s business environment and attracting investment.

The public participation forum, organized by the Ministry of Investments, Trade and Industry through the State Department for Investment Promotion, brought together representatives from the private sector, county governments, persons with disabilities, and the general public in Kapenguria to collect views that will inform amendments to the Act.

The exercise forms part of a nationwide stakeholder engagement aimed at strengthening the implementation of the law, which seeks to establish standard and uniform licensing procedures for all county governments while allowing counties to retain the constitutional mandate of setting their own licensing fees and regulations.

Speaking during the forum, West Pokot County Executive Committee Member (CECM) for Trade Joshua Ruto said the reforms will significantly improve service delivery to the business community by eliminating unnecessary bureaucratic processes.

He 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 Ruto.

He assured investors that the West Pokot County Government remains committed to creating a conducive environment for businesses by streamlining licensing services and improving efficiency in service delivery.

Ruto added that the proposed one-stop licensing system 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.

Kenya National Chamber of Commerce and Industry (KNCCI) West Pokot Chapter Vice Chairperson Mark Loriso welcomed the ongoing reforms, thanking the national government for fast-tracking the implementation of the Act while ensuring county governments remain actively involved throughout the process.

He said the private sector appreciates the government’s decision to seek views directly from businesses, noting that entrepreneurs are the country’s primary drivers of revenue generation, employment and economic growth.

Loriso observed that harmonized licensing procedures will reduce duplication, lower compliance costs and improve the ease of doing business, particularly for Micro, Small and Medium Enterprises (MSMEs).

In a speech during the regional forum, the Principal Secretary for Investment Promotion Abubakar Hassan Abubakar underscored the significance of the reforms while addressing a regional stakeholder engagement forum on the proposed amendments.

The Principal Secretary noted that businesses have for years faced challenges arising from inconsistent county licensing requirements, multiple inspections, varying documentation demands and delays in service delivery.

He said 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 PS 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.

By Parklea Ivor

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