14 October 2008
Nairobi — The intended positive effect of local authorities Single Business Permit has not been realised, Trade Minister Uhuru Kenyatta has said.
The deputy Prime Minister said emerging taxes, user charges and uncalled for licenses had negated the expected benefits of single business permits.
"It has not helped that many local authorities have opted for the highest revenue yielding code in the Single Business Permit," Mr Kenyatta told a workshop on "Doing Business Indicators for Local Authorities."
He said at the Kenyatta International Conference Centre that local authorities needed to reduce the cost of doing business by removing burden of regulation.
The minister said civic bodies should balance revenue considerations and the ease of doing business.
"This calls for rationalisation and reduction of local taxes and user charges; and the reduction in the regulatory burden of business,' Mr Kenyatta said.
He told the workshop meant to improve the environment for business in local authorities that multiple licences and user charges hinder "place an unacceptable burden on business."
Mr Kenyatta named poor service delivery by local authorities, limited worksites especially for jua kali (informal) sector and inadequate wholesale and retail markets as other challenges facing business investments.
Others are cumbersome land access procedures, insecurity and poor management of institutions.
Kenya, he said, urgently needs investors to create wealth and employment for it to be a globally competitive nation, enjoying a high quality of life by 2030.
The deputy PM said his ministry was focusing on improving business environment, promotion of entrepreneurs and business development, promotion of wholesale and retail trade and expansion, deepening and diversification of export markets and products.
The Trade ministry is further emphasising value addition in primary produce to be competitive in global market.
He called for cooperation between his ministry and that of Local Government in provision of infrastructure, especially, land, roads, water and electricity for business operations.
"Kenya needs to deliver a high quality, low cost business environment," he added.
He said district trade development officers will work with local authorities to provide better business environment.
Mr Kenyatta told local authorities not to harass hawkers as they were a product of the council's poor planning.
He said it is unemployment that drives most youth to engage in irresponsible behaviour.
He said it is the small businesses that will help the government realise Vision 2030.
He further promised that his ministry will offer incentives to investors who want to venture in Kenya.
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