Kenya rises 28 places in ease of doing business index

Kenya has improved 28 positions in the World Bank’s ease of doing business index helped by reforms in business and property registration, electricity connections and access to credit.

The country has been ranked at position 108 out of 189 countries globally compared to 136 last year, making it the third most improved economy.

This has stopped a downward trend since 2011 when Kenya slipped to position 109 from 98 a year earlier, 121 in 2012 and 137 in 2013.

READ: Corruption, taxes cut Kenya’s competitive edge

“Kenya is on the move. But the road ahead is challenging and more needs to be done,” said Deputy President William Ruto during the announcement in Nairobi on Wednesday.

Huduma Centres

World Bank officials said the creation of Huduma Centres, which have brought different government services in one place, largely drove the country’s performance.

“The concept of Huduma Centre was key in these reforms,” said IFC (World Bank’s private lending arm) regional director, East and Southern Africa Oumar Seydi.

The report shows that the period taken for businesses to be connected to electricity has reduced to 110 days from 145 last year while the country improved to position 28 in ease of accessing credit from 116 last year.

Property registration takes 61 days from 72 last year. Slow issuance of construction permits was a drag with Kenya ranking at 146 from 128 last year due to doubling of procedures to 16.
The annual survey was done between June 1 last year and May 30, 2016.