Opinion and Analysis
There are too many hidden costs in doing business locally
Posted Monday, September 10 2012 at 16:33
In Summary
- So the life and times of the business sector are closely intertwined with the dynamics of governments. In Kenya the chequered history has had its changing impacts and dynamics in the business world over time. Complaints by business people mirror closely with what has been happening in the lives of the citizens.
- Businesses in Kenya have been complaining about the same things over the years. They range from inefficiencies and corruption in the transport system, costs of energy, government red tape in licensing and clearance, infrastructure, insecurity and so on.
- There are many other costs associated with derelict operational systems and environment, which are only adding to the costs of doing business. Kenya may be reputable in having a highly trained work force, but there are many dysfunctional areas that adversely affect business.
- The quality of training is increasingly coming to question. There is little interaction between industry and training leading to a gap between the actual realisation of the theory and practise or lack of it taught in institutions. Moreover, this is being addressed by training programmes offered in-house by industries
It is not always easy to please businesses globally as they always have many issues affecting them. The business world is always dynamic. But due to dynamics of the market and factors affecting human needs and desires, the business world is always in need to better the circumstances.
Many of the greatest innovations in the world have been brought about by the business realm or in response to the market. It is the same business world that nations rely on as part of the citizenry to create and provide employment and taxes to keep them going.
So the life and times of the business sector are closely intertwined with the dynamics of governments. In Kenya the chequered history has had its changing impacts and dynamics in the business world over time. Complaints by business people mirror closely with what has been happening in the lives of the citizens.
Businesses in Kenya have been complaining about the same things over the years. They range from inefficiencies and corruption in the transport system, costs of energy, government red tape in licensing and clearance, infrastructure, insecurity and so on.
Hamper
In a nutshell, the same old things still hamper business progression. I have lost count of the number of manufacturers who have exited Kenya.
Currently, the political risks associated with the forthcoming general election are a major concern. During the aftermath of the disputed 2007 presidential poll the chaos that erupted destroyed many businesses, caused untold human sufferings in displacement, injuries and death.
There are many other costs associated with derelict operational systems and environment, which are only adding to the costs of doing business. Kenya may be reputable in having a highly trained work force, but there are many dysfunctional areas that adversely affect business.
The quality of training is increasingly coming to question. There is little interaction between industry and training leading to a gap between the actual realisation of the theory and practise or lack of it taught in institutions. Moreover, this is being addressed by training programmes offered in-house by industries.
But with industry grappling with so many challenges and the inequities which exist in Kenya along ethnicity and social class obviously the gap remains.
But it calls upon in upgrading the quality of training offered at all levels. Fraud is another growing headache. Both big and small businesses are complaining on massive dishonesty by their workers and employees some at leadership levels.
The writer is a consultant and researcher



RSS