Nairobi — Reforms in the local authorities are inevitable if the country is to achieve its development objectives, key among them ability to attract investors.

This will involve dissolving and merging some of them to be able to play their roles effectively.

Speaking during the release of the sub-national Doing Business in Kenya 2010, local government minister, Musalia Mudavadi said the local authorities Act will be changed to stipulate how the local authorities are formed and guide on their winding up.

"We must bite the bullet and fold some of the local authorities which have failed to meet their obligations. It is politically explosive issue and even as you resist there is no option. Some surgery will have to come through the boundaries review commission because local authorities also fall there.

Mr Mudavadi said Cap 265 would be reviewed to improve management of the local authorities.

He said the paper was ready and was awaiting Cabinet approval before its taken to parliament for debate.

He said out of 175 local authorities only 40 were able to meet their financial obligations comfortably.

The report revealed that it is easiest to do business in Narok while the most difficult town was Isiolo among the eleven local authorities studied.

Other towns were Malaba, Thika, Kisumu, Mombasa, Nyeri, Garissa, Eldoret, Kilifi and Nairobi.

The study involved ranking of the towns on the basis of ease in starting business, construction permits, registering property and enforcing contracts.