The government has started convening meetings of key stakeholders to discuss the Business Laws (Amendment) Bill, 2024 which aims to reform various aspects of Kenya‘s business environment.
State officials led by Cabinet Secretary for Investments, Trade and Industry Salim Mvurya who met with stakeholders in Nairobi on Monday said the Bills are designed to enhance the performance of the State Department for Industry through a series of key reform proposals.
During the validation meeting, the Ministry called for input from stakeholders on several critical areas.
These include strategies to attract and de-risk local and foreign investments, rationalising incentives to promote manufacturing growth, and enhancing consumer protection and fair trade practices.
Additionally, the Bill seeks to improve the performance of the export sector, reduce domestic trade costs, harmonise taxes within the manufacturing sector and implement measures to ensure product quality while combating counterfeiting.
Concerns have been raised, particularly regarding the high cost of doing business in the country, cumbersome regulatory procedures and limited access to financial resources for manufacturing investments.
Issues highlighted during the discussions included local ownership requirements, delayed payments for goods and services, and challenges to export competitiveness.
The CS said the Ministry outlined a phased implementation approach. The first phase involves immediate amendments to existing business laws that require minimal changes.
The second phase focuses on developing new legislation for major reforms, including the Automotive Bill and the Geographical Indicators Bill, which are pending cabinet approval.
The third phase will review and develop policies to tackle identified market challenges, including a National Industrialisation Policy and Consumer Protection Policy. CS Mvuria said the Ministry intends to implement the proposals received in phases.
„We will be amending the existing business-related laws that do not require major changes through the Omnibus Business Laws (Amendment) Bill, 2024.
„To this end, several Bills have either been developed or reviewed including - the Automotive Bill, Metrological Bill, Warehouse Receipt System (Amendment) Bill, Trade Descriptions (Amendment) Bill and Geographical Indicators Bill.“
He said the Bills are ready and will soon be submitted to the cabinet for consideration and approval before submission to Parliament for enactment.
The Business Laws (Amendment) Bill, 2024 aims to amend 57 clauses across 18 acts of Parliament, including the Investment Promotion Act and the Employment Act.
It seeks to enhance the registration and regulation of manufacturers, establish new laboratories for product testing, and improve consumer protection measures.
Among the notable proposals are the registration of manufacturers to address trade discrepancies and support evidence-based policymaking, as well as obligations for manufacturers to comply with Kenya Standards to ensure product safety.
The Bill proposes also amendments to the Public Procurement and Asset Disposal Act, mandating that 40 per cent of goods procured come from local manufacturers.
The Bill also includes financial reforms intended to regulate non-deposit-taking credit businesses and enhance consumer protections within the microfinance sector.
