Kenya Improves in World Bank's Investment Destination List
Posted on : Monday , 2nd November 2015
Kenya's ranking as an investment destination has improved, largely due to the introduction of Huduma Centres and a campaign to increase electricity connections.
Huduma Centres are one-stop shops where a wide array of government services are offered.
The World Bank's Ease of Doing Business Index 2016 released Wednesday ranked Kenya as the third most improved nation in business regulatory reforms among 189 economies.
The report placed Kenya at position 108, an improvement by 21 places from last year's position.
However, the country still lags behind Rwanda, South Africa, Swaziland, Botswana and Mauritius on the continent.
The economy is struggling with rising interest rates and a government weighed down by debt brought about by too many large projects, corruption and a tendency to waste public resources.
Rwanda -- which has perennially beaten Kenya in the ranking -- did it again this year, outshining Kenya on competitiveness despite climbing down seven positions to 62 from 55 last year.
It takes six days to register and start a business in Rwanda, 26 in Kenya and 46 in South Africa.
South Africa also outpaced Kenya at position 73, although it slid four places compared to last year.
REGULATORY REFORMS
Kenya attained a better rating this year due to four regulatory reforms: Improving access to loans, ease of electricity connection, starting a business and registering property.
However, difficulties in acquiring construction permits affected the country's overall ranking.
According to the report, credit rating improved as a result of the introduction of credit reference bureaus that allow financial institutions to assess the credit worthiness of companies and individuals.
A reduction in electricity connection procedures, which brought down the number of days it takes to get a business connected to power from 158 to 110 days, also gave Kenya a boost.
In the starting a business indicator, reforms have seen the number of days it takes to register a business reduced from 30 to 26.
In the registering property category, automation of land records at the ministry registries was noted for reducing customer interaction points and spurring efficient service delivery.
Kenya also introduced a number of reforms involving stamp duty, property transfers and access to credit, says the report.
However, the country still scores poorly in the assessment of whether regulations facilitate or impede start-ups and daily operations.
EXPOGROUP Supports The “ GO GREEN ” campaign across the globe. Grow a plant every weekend and enjoy it grow !
