CS Salim Mvurya Unveils Key Reforms to Bolster Kenya’s Business Environment
Speaking at a high-profile event on Thursday, the Cabinet Secretary for Investment, Trade, and Industry, Salim Mvurya, outlined his ministry’s initiatives aimed at fostering a conducive and competitive business environment. He emphasized the ministry’s commitment to ensuring businesses not only survive but thrive in Kenya.
“In the last two years, we have actively engaged the private sector on business reforms,” Mvurya stated. “This has culminated in several legal and regulatory advancements, including measures in the Finance Act, 2023, Finance Bill, 2024, and the recently enacted Business Laws Amendment Act, 2024.”
Economic Achievements
Mvurya highlighted notable achievements in stabilizing Kenya’s macroeconomic environment. He revealed that the government had stabilized the exchange rate, reducing it from Kshs. 160 to Kshs. 129, and successfully lowered inflation from 9.6 percent to 2.7 percent . Additionally, forex reserves have been enhanced to cover 4.8 months of imports, and interest rates have been reduced to 11.25percent.
The CS also noted progress in industrial infrastructure through the operationalization of Special Economic Zones (SEZs) in Dongo Kundu and Naivasha, six flagship projects under Export Processing Zones (EPZs), and 19 County Aggregation and Industrial Parks.
He further announced the opening of preferential trade markets under the African Continental Free Trade Area (AfCFTA), the UK, Europe and UEA.
Despite these strides, Mvurya acknowledged reports of distress among some companies. After engagements with affected businesses, over-regulation emerged as a significant challenge.
“To address this, I have launched a De-Regulation Reform Agenda and appointed a 10-member task force chaired by the private sector,” Mvurya announced.
The task force, which includes representatives from key industry bodies such as KEPSA, Kenya Association of Manufactures, and Kenya National chambers of commerce, will work from January to March 2025 to identify regulatory burdens and propose solutions.
The task force’s recommendations will form the basis of a Cabinet paper aimed at creating a more business-friendly environment. “I reaffirm my commitment not only to promote and facilitate investments but also to support businesses in distress for the sustainable growth of our economy,”he reiterated.
The Ministry’s proactive approach signals a renewed effort to enhance Kenya’s economic competitiveness and resilience in the face of evolving global and domestic challenges.
