Kenya, SA seek to remove trade barriers

“Kenyans need to understand that doing business in South Africa will require them work with the unions. Some Kenyans tell me it is difficult to fire an incompetent employee in South Africa because of the unions, it is not hard as long as one follows the due process of the law,” said the SA High Commissioner in Nairobi.

But the chairman general of COTU Rajabu Mwondi said there is no major difference between the respective of labour rights in Kenya and South Africa but declined to elaborate.

Under the Trade Commission, South Africa will also assist Kenya set up a nuclear energy electricity plant to help the country diversify from over reliance of hydro generated electricity, which is susceptible to weather changes.

South African owned businesses have not had a rosy experience in Kenya with massive closures in the late 1990s and early 2000s.

A report by South Africa Institute of International Affairs then cited hostility between the business players in the two countries and Kenya’s lack of adequate infrastructure and slow pace of business reforms as some of the cause of those closures.

However, the situation has been improving with Kenya making several business reforms like reduction of business licenses, reconstruction of roads and information technology networks, which is now ongoing.

“The private sector has to try to break this suspicion for their own good. The ball is in their court,” said Mr Msimanga.