Reforms to ease cost of business

Reforms to ease cost of business
Photo: Ministry of Industry, Trade and Co-operatives Cabinet Secretary Adan Mohammed (right) with Kenya Private Sector Alliance Chair Nicholas Nesbitt during a private sector breakfast on business reforms in Nairobi yesterday. Photo/HELLEN MUTURI

Government yesterday showcased a number of reforms it has undertaken in the last one year geared towards ease of doing business in the country.

The reforms embraced include company registration, credit access, property transactions, obtaining new electricity connections and enforcing the contract.

Other reforms undertaken in the past include protecting minority investors’, paying taxes and construction permitting. Speaking yesterday during the stakeholders’ briefings, Ministry of Trade Cabinet secretary Adan Mohammed said the signing of the Movable Property Security Act 2017 into law has the ability to enhance individuals’ access to credit.

According to Adan the law provides legal framework to enable companies and individuals to access credit by using movable property like livestock, equipment, furniture and crops as long the property is registered.

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Acting General Director of Business Registration Service, Kenneth Gathuma said the Act also promotes consistency and certainty in securing financing relating to movable assets.

“The collateral registration is working and can be accessed through the e-citizen platform,” he said. “The collateral, however, cannot exceed 10 years,” he said.

Kenya Power (KP), Acting Managing Director and Chief executive, Ken Tarus, said the company is targeting to bring down timeline for connecting new commercial customers to less than two months.

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“We have managed to reduce connection timeline from 97 to 63 days. We are working to bring this down to 50 days. We are focused on enhancing our infrastructure through investment in new substations and additional distribution lines to enable us connect more customers to the grid,” Tarus said.

KP seeks to achieve 70 per cent access to electricity by the end of the current financial year and universal access by 2020. Deputy Registrar Commercial and Tax Division, Elisabeth Tanui said the business entities need to embrace mediation process.

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