Human rights and business success

To remain competitive in Kenya, businesses must place human rights at the core of their strategies.

Photo credit: Shutterstock

As 2025 gets underway, the evolving relationship between human rights and business competitiveness demands reflection. Recent years have seen a resurgence of human rights accountability, characterised by two pivotal shifts.

First, the traditional ‘name and shame’ strategy has given way to a ‘know, do, and show’ framework.

Second, human rights accountability is now recognised as extending to all entities, including businesses.

While human rights and business have long been interconnected, the adoption of the United Nations Guiding Principles on Business and Human Rights (UNGPs) in 2011 brought this relationship into sharp focus.

These principles have paved the way for businesses to integrate human rights into their operations. In Kenya, this integration is gaining momentum, shaping the competitive landscape

Kenya has been a trailblazer in Africa, adopting the National Action Plan on Business and Human Rights (NAP) in 2019.

This historic framework provides a roadmap for incorporating the UNGPs into national policies and practices. It emphasises three pillars: the government’s duty to protect human rights, the business’s responsibility to respect these rights, and the need for effective remedies for abuses.

The NAP’s adoption highlights Kenya’s commitment to embedding human rights in business operations. It serves as a guide for businesses to align their strategies with human rights principles, ensuring sustainability and competitiveness.

This commitment is especially crucial as international regulations, such as the European Corporate Sustainability Due Diligence Directive (CSR3D), take shape, setting a higher bar for global accountability.

The CSR3D, adopted by the European Parliament in 2024, requires businesses with over 1,000 employees or significant annual turnover to address their human rights and environmental impacts.

While it represents progress, critics argue it falls short by excluding smaller enterprises and failing to align fully with the UNGPs’ universal applicability.

For Kenya, the CSR3D underscores the importance of proactive human rights due diligence, even in the absence of similar statutory frameworks.

Kenyan businesses must recognise that accountability is no longer a matter of choice but a competitive necessity.

Kenya’s judiciary has bolstered this accountability. A landmark 2024 Supreme Court ruling in Export Processing Zone Authority & 11 others vs National Environment and Management Authority & 6 others set a powerful precedent. The case addressed violations of rights to a clean and healthy environment, health, safe water, and life.

The court found that environmental harm from industrial activities had adversely impacted soil, air, water, and human health. It held that the duty to protect these rights extends beyond the state to include businesses.

Damages were apportioned among various parties, with businesses bearing 50 percent of the liability. This binding precedent reinforces the need for Kenyan businesses to prioritise human rights and environmental stewardship.

To remain competitive in Kenya, businesses must place human rights at the core of their strategies.

This begins with reviewing business models to identify potential human rights risks, both within their operations and across supply chains. Stakeholder engagement is crucial, involving workers, communities, and other affected parties to ensure transparency and accountability.

Kenya’s NAP provides a framework for fostering community participation, establishing grievance mechanisms, and ensuring access to information. Compliance with these principles not only mitigates legal and reputational risks but also builds trust and goodwill among communities, which are critical for long-term success.

Kenyan communities play a pivotal role in holding businesses accountable. The NAP emphasises their involvement in decision-making and capacity-building to engage effectively with corporate activities.

Communities impacted by human rights abuses linked to multinational corporations have avenues for redress through local courts and international mechanisms, such as the OECD’s National Contact Points or European oversight structures under CSR3D.

These mechanisms offer transnational accountability, ensuring that businesses respect human rights both locally and abroad. For European businesses operating in Kenya, non-compliance can lead to penalties, market exclusion, and heightened scrutiny.

Kenya’s commitment to integrating human rights into business practices is not only a moral imperative but also a strategic advantage.

By aligning with frameworks like the NAP and drawing lessons from global standards such as the CSR3D, Kenyan businesses can enhance their competitiveness while contributing to sustainable development.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.