New law lifts Kenya’s business profile

The birth of the second republic on Friday breathes a new lease of life to businesses that have been grappling with high costs and red tape.

Though things will not change overnight, industry captains and technocrats in the public sector see in the promulgation of the new constitution by President Kibaki the laying of a corner stone for the productive sector to create wealth, giving Kenyan goods and professionals a competitive edge in regional and overseas markets.

“The new law is a catalyst for investment. Unlike the old law which suppressed creation of new wealth in favour of those in power, this document provides for a level playing ground for all,” said Sheila Yieke, the general manager for legal services at the Kenya Investment Authority.

Business leaders see the new constitution wrapping on their operations positively by incorporating private sector operatives in regulatory and policy organs, disbursing tax revenues to the district level, reforming the judiciary, embracing the diaspora and barring soiled leaders from holding public office.

“There is going to be a lot of competition for investors among the counties. To do that, they will have to provide services and build the necessary infrastructure which means substantial revenue collections,” said Mr Sammy Onyango, the chief executive of Deloitte Eastern Africa.

The separation of politics and economic management in particular has raised expectations that the public service will finally be professionally run, removing an impediment that has seen investors opt out of setting shop in Kenya taking away with them jobs and chances of poverty eradication.