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Subnational Data

Doing Business in Kenya 2016

Author: Subnational Doing Business
Published: September 13, 2016

Overview

Doing Business in Kenya 2016 is the third report of the subnational Doing Business series in Kenya. It measures business regulations and their enforcement in 11 counties: Busia (Malaba), Isiolo, Kakamega, Kiambu (Thika), Kisumu, Machakos, Mombasa, Nairobi, Narok, Nyeri and Uasin Gishu (Eldoret). The report measures regulations affecting 4 stages of the life of a small or medium-size business: starting a business, dealing with construction permits, registering property and enforcing contracts.

Where is it easiest to do business in Kenya?

Main Findings

  • This third report of the Doing Business series in Kenya measures 11 counties, including Machakos for the first time.
  • Doing Business in Kenya 2016 introduces new components in three of the four areas measured in order to capture different dimensions of regulatory quality.
  • Since 2012, Kenya’s devolution of powers to 47 new counties has prompted major regulatory changes: the national reform agenda is focused on improving service delivery at the local level for all citizens.
  • Kenyan entrepreneurs face different regulatory hurdles depending on where they establish their businesses, and no single county in Kenya performs equally well on all indicators. Additionally, there is no relationship between the size of the county (as measured by population) and the rankings.
  • All counties measured have improved in at least one regulatory area between 2012 and 2016, many due to national reforms. A total of ten counties implemented local reforms in at least one of three areas: starting a business, dealing with construction permits and registering property.
  • The creation of the Huduma Centers (one-stop shops for multiple government services) was the boldest reform recorded; new Huduma Centers are helping facilitate business start-up and property transfers.
  • Critical challenges remain. Following the devolution process, the national and local governments must create new rules, structures and systems across the two tiers of government and build national and local capacity.