KENYA’S NEW BUSINESS REFORMS

The standardization of the cost for company registration to KES 10,000 has hailed as one of the major reforms by the ministry of industrialization over the past two years.

Speaking in Nairobi the Cabinet Secretary of Industry, Trade and Cooperatives; Adan Mohammed, stated that all companies no longer require a company seal or declaration of compliance by an advocate before a commissioner of oaths.

 “Over the past two years, the Ministry of Industry, Trade and Cooperatives in collaboration with multiple Government Agencies, has been coordinating the implementation of reforms to improve the business climate for small and medium enterprises (SME’s) that want to invest and do business in Kenya,” said the Cabinet Secretary.

Businesses will be required to collect a single Certificate of incorporation, which will now include Kenya Revenue Authority (KRA), National Social Security Fund (NSSF) and National Health Insurance Fund (NHIF) registration certificates.

As a global production costs continue to grow, Kenya is at a turning point into an industrial hub in manufacturing and industrialization markets.

The reforms have been concentrated around business registration, property registration, construction permitting, access to electricity, getting credit, protecting minority investors, taxation, cross border trade, enforcing contracts and resolving insolvency.

All companies can now file Corporate Income Tax online through the iTax platform and make NHIF payments on their website, eliminating the cumbersome process of queuing.

“Making it easier, faster, and more transparent to do business in Kenya remains our key agenda,” said Cabinet Secretary.

The Government has strengthened the laws that protect minority shareholders by guarding against directors’ misuse of corporate assets for personal gains thereby strengthening shareholder rights and role in corporate decisions making.

Nairobi County has reduced the cost of obtaining building permits from 1.1% of the construction cost to 0.5% by passing the Nairobi City County Finance Act 2015.

The Ministry of Lands and Survey of Kenya have introduced mechanisms, which clients can make assessment and payment of land rates online. While use of online Title search for properties in Nairobi registry is now on the e-citizen portal. 

Kenya Power has introduced a Geographic Information System based Facilities Database in order to reduce the time spent for connectivity.

Kenya Power is now accurately measuring and monitoring the reliability of power by reporting supply and transparency of Tariff indices.

The implementation of the Kenya National Electronic Single Window System (KNESWS) is ongoing. This facilitates online clearing and release of cargo at border points. 

The automation of this process will allow for the inspection agencies to update the status of the goods in the system for other agencies to view and will enable KRA to eliminate the manual import and export process during customs clearance.

The Single Customs Territory Agreement eliminated the use of customs declaration within Uganda, Kenya and Rwanda and introduced the Single Administrative Document to be filled by the trader from the importing country.

These reforms are geared towards optimizing business processes, procedures and introduce automation thereby enhancing the business environment in Kenya. This will create more jobs and alleviate poverty from the country.

Making it easier, faster, and more transparent to do business in Kenya remains our key agenda.

‘Nexus’ is the Government Newsroom that communicates transformation

 

 

 

 

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31 May 2016 0 comment
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Last modified on Tuesday, 31 May 2016 13:28

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