NAIROBI, March 13 (NNN-KBC) — Kenya and the United Kingdom have collaborated to hold a three day workshop to improve regulations that underpin the running of businesses in Kenya.
The event, held in the East-African economic hub of Nairobi, aims to address challenges faced by business while operating in Kenya and targets both homegrown and those looking to establish themselves in the country.
It will also provide Kenyan officials with the tools to better regulate the way businesses can operate in Kenya, by learning how these are applied and implemented in the UK.
Increased efficiencies in this space would also help to boost intra-African trade though increased compliance with the African Continental Free Trade Area (AfCFTA).
Speaking on the first day of the workshop at Raddison Blue Hotel, the Director, Trade and Investment, Kenya & Regional Director, East Africa, Richlove Mensah, praised Kenya’s progress in entrepreneurship, green energy, and digital transactions.
However, he acknowledged the challenges businesses face due to complex tax systems and slow regulatory processes. “The UK is committed to working with Kenya to improve the business environment. Our collaboration aims to create a framework that fosters investment, facilitates trade, and supports economic growth,” he stated.
He noted that Kenya must seize its economic potential and introduce rapid reforms to regulation that will unlock jobs and economic growth – ultimately putting mores shillings in the pockets of the people.
“Whilst no business environment will ever be perfect, Kenya must seize its economic potential and introduce rapid reforms to regulation that will unlock jobs and economic growth – ultimately putting mores shillings in the pockets of the people.”
He said noting that, “We want to capitalize on a bumper year of trade, through this excellent and timely UK-Kenya partnership. The UK is listening to the challenges, and we are applying our regulatory excellence to help deliver the solutions as a long-term partner for Kenya we go far when we go together.”
Speaking at the same forum, Chief Manager of Laboratories at Kenya National Accreditation Service (KENAS), Lucy Namu, emphasized on the significance of accreditation in ensuring competence of conformity assessment bodies.
“Accreditation ensures that businesses meet international standards, reducing trade barriers and boosting Kenya’s credibility in global markets,” she noted.
She also pointed out that Kenya could learn from the UK’s accreditation systems to enhance its regulatory efficiency.
On his part, CEO KENAS, Dr. Walter Ongeti remarked that accreditation plays a vital role in ensuring regulatory reliability, fostering trust by guaranteeing competence, impartiality, and compliance with international standards.
Similarly, the United Kingdom Accreditation Service (UKAS) International Director, Rob Bettinson said the global recognition of accredited conformity assessment enables a test or certification to be used in multiple markets, reducing costly trade barriers for businesses.
“By working together to share global good practice on effective quality infrastructures of standards and accreditation, and proportionate and sound regulation, we can promote trade and economic growth in both our countries.” He said.
While expressing his delight for taking part in the event, the Head of Policy Engagement at BSI (British Standards Institute), Daniel Mansfield noted that raising awareness and understanding of the value that comes from the use of standards and quality infrastructure to inform policy can bring huge benefits, including helping to enhance business environments, boost trade and accelerate economic growth.
“We look forward to continuing collaborating, alongside our Standards Partnership and Commonwealth Standards Network programmes, which both have the potential to accelerate progress and unlock future opportunities to benefit consumers, organizations and governments around the world.”
Director for Standards Development at the Kenya Bureau of Standards (KEBS), Zakaria Lukorito, emphasized the importance of technical standards in supporting economic growth.
“These standards are prepared by experts across various sectors and play a crucial role in shaping regulations. By integrating them effectively, Kenya can enhance business operations and trade.”
British businesses have reported that the challenging operating environment is the main barrier to business operations in Kenya, along with power outages and high electricity costs.
The challenges cited include onerous import procedures, a complex tax regime, and local ownership requirements in some service sectors including the insurance sector.
According to the Kenya Accreditation Service (KENAS), Kenyan businesses also face challenges.
These include a complex regulatory landscape that frequently changes, meaning businesses may struggle to stay up to date with evolving requirements to stay compliant, whilst at the same time achieving accreditation can be hard, as regular training, assessments, and upskilling are necessary to meet evolving accreditation requirements.
The workshop is another example of the UK being a long-term partner for long-term economic growth, and supports support business environment reforms as set out in the UK-Kenya Economic Partnership Agreement.
The agreement ensures that all companies operating in Kenya, including British businesses, can continue to benefit from duty-free access to the UK market.
The workshop will also explore how regulatory improvements can enhance Kenya’s compliance with the African Continental Free Trade Area (AfCFTA), fostering increased intra-African trade.
Additionally, emerging technologies such as artificial intelligence and blockchain are being discussed as potential tools to improve regulatory enforcement and business transparency.
The event aims is part of a broader effort to strengthen UK-Kenya trade relations, which have seen significant growth in recent years and further improvements in regulatory efficiency are expected to drive even more economic activity.
Total trade in goods and services (exports plus imports) between the UK and Kenya was £1.7 billion in the four quarters to the end of Q3 2024, an increase of 8.0% or £129 million in current prices from the four quarters to the end of Q3 2023. — NNN-KBC
