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Business Reforms in Kenya

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB2017:

Starting a Business: Kenya made starting a business easier by removing stamp duty fees required for the nominal capital, memorandum and articles of association . Kenya also eliminated requirements to sign compliance declarations before a commissioner of oaths. However, Kenya also made starting a business more expensive by introducing a flat fee for company incorporation.

Getting Electricity: Kenya streamlined the process of getting electricity by introducing the use of a geographic information system which eliminates the need to conduct a site visit, thereby reducing the time and interactions needed to obtain an electricity connection.

Registering Property: Kenya made Registering property easier by increasing the transparency at its land registry and cadastre.

Protecting Minority Investors: Kenya strengthened minority investor protections by clarifying ownership and control structures, by introducing greater requirements for disclosure of related-party transactions to the board of directors, by making it easier to sue directors in cases of prejudicial related-party transactions and by allowing the rescission of related-party transactions that are shown to harm the company.

Resolving Insolvency: Kenya made resolving insolvency easier by introducing a reorganization procedure, facilitating continuation of the debtor’s business during insolvency proceedings and by introducing regulations for insolvency practitioners.

DB2016:

Starting a Business: Kenya made starting a business easier by reducing the time it takes to assess and pay stamp duty.

Dealing with Construction Permits: Kenya made dealing with construction permits more difficult by requiring an additional approval before issuance of the building permit and by increasing the costs for both water and sewerage connections

Getting Electricity: The utility in Kenya reduced delays for new connections by enforcing service delivery timelines and hiring contractors for meter installation.

Registering Property: Kenya made property transfers faster by improving electronic document management at the land registry and introducing a unified form for registration.

Getting Credit: Kenya improved access to credit information by passing legislation that allows the sharing of positive information and by expanding borrower coverage.

DB2015:

Dealing with Construction Permits: Kenya made dealing with construction permits more costly by increasing the building permit fees.

Getting Credit: Kenya improved its credit information system by passing legislation that allows the sharing of both positive and negative credit information and establishes guidelines for the treatment of historical data.

Paying Taxes: Kenya made paying taxes more costly for companies by increasing employers’ social security contribution rate.

DB2013:

Paying Taxes: Kenya made paying taxes faster for companies by enhancing electronic filing systems.

DB2012:

Enforcing Contracts: Kenya introduced a case management system that will help increase the efficiency and cost-effectiveness of commercial dispute resolution.

DB2011:

Starting a Business: Kenya eased business start-up by reducing the time it takes to get the memorandum and articles of association stamped, merging the tax and value added tax registration procedures and digitizing records at the registrar.

Paying Taxes: Kenya increased the administrative burden of paying taxes by requiring quarterly filing of payroll taxes.

Trading across Borders: Kenya speeded up trade by implementing an electronic cargo tracking system and linking this system to the Kenya Revenue Authority’s electronic data interchange system for customs clearance.

DB2010:

Dealing with Construction Permits: Kenya made dealing with construction permits more costly by raising fees.

Getting Credit: Kenya improved access to credit information through a new law on credit bureaus providing a framework for a regulated and reliable system of credit information sharing.

DB2009:

Starting a Business: Kenya reduced the time required to start a business through improvements at the registry and better communication between relevant agencies.

Trading across Borders: Kenya made trading across borders easier by extending the operating hours of customs and port authorities, reducing the number of inspection points between Nairobi and Mombasa and introducing an electronic system allowing traders to submit their documents online.

DB2008:

Starting a Business: Kenya reduced the time and cost to register a company through an ambitious licensing reform program that eliminated 110 types of business permits and simplified 8 others.

Dealing with Construction Permits: Kenya made dealing with construction permits easier by simplifying procedures, improving efficiency in issuing permits and reducing the cost of obtaining a telephone connection.

Registering Property: Kenya speeded up property registration by allowing private practitioners (in addition to government valuers) to carry out land valuations, which reduced the time required for a valuation from a month to a week.

Getting Credit: Kenya’s private credit bureau expanded the coverage of its database by adding retailers and utility companies as providers of credit information.