NAIROBI, Kenya has been ranked third in Africa but only 80th in the world in the latest ranking by the World Bank in its Ease of Doing Business Report which surveyed the situation in 190 countries in 2017.
The report says Kenya’s position has been boosted by reliable energy supply, reduced business-opening procedures and easier tax filing procedures following major reforms carried over the past 10 years to improve the business environment. In the last two years, Kenya passed more than five laws aimed at creating a conducive business space.
In the African region, Kenya ranks third as the most improved nation behind leaders Mauritius and Rwanda and the Cabinet Secretary (Minister) for Trade, Adan Mohammed, says the target is to be within the top 50 in the world for ease of doing business in five years’ time.
He says the ongoing business reforms have catapulted Kenya into one of the best investment destinations in Africa second only to South Africa.
Foreign Direct Investments (FDI) in Kenya have also risen from 40 billion shillings in 2013 to 210 billion shillings (about 2.0 billion US dollars) last year.
Kenya Private Sector Alliance chief executive Carol Kariuki says Kenya has improved the reliability of electricity supply by modernizing distribution lines while at the same time setting up a specialized squad to restore power when outages occur.
However, the World Bank report says Kenya needs to deal with endemic congestion on its roads, expedite the process of tax refunds and continue to invest in security.
In the world rankings, New Zealand is first, followed by Singapore and Denmark, while Somalia emerged as the worst, behind Eritrea and Venezuela. India was the most improved economy, jumping 30 ranks to hit the top 100 mark.
Source: NAM NEWS NETWORK