The government has announced a new plan to simplify business licensing processes and unlock the full potential of Kenya’s retail sector through a joint initiative with private stakeholders.

Speaking during a meeting with the Retail Trade Association of Kenya (Retrak), Investments, Trade and Industry Cabinet Secretary Lee Kinyanjui said the government will work with various agencies and county governments to address concerns over licensing duplication, multiple charges, and regulatory burdens that businesses face.

Kinyanjui said Kenya is committed to creating a more favourable business environment for both local entrepreneurs and international investors. “Kenya provides a stable environment for businesses for the long term and the government has a large appetite to implement reforms that will promote investment in the country,” he stated.

According to Kinyanjui, the planned multi-agency forum will bring together stakeholders including County CECs of Trade, the Council of Governors, the Kenya Revenue Authority, the Music Copyright Society of Kenya, and other regulators to harmonise operations and eliminate unnecessary red tape.

A recent survey in the retail sector revealed that running a supermarket in Kenya may require between 18 to 25 different licenses. Retrak has flagged this as a sign of the country’s slow progress in lowering the cost of doing business.

The CS met with Retrak chairman Rupen Shah and CEO Wambui Mbarire, along with various retailers, to deliberate on challenges in the sector. Those present included County Supermarket owner Annabell Njambi and Peter Kago of Naivas.

Among the key concerns raised was the heavy toll of recent political unrest, with retailers reporting losses running into billions due to looting and destruction of businesses during demonstrations. Security and protection of businesses remain a key concern for the sector.

Retailers also expressed frustration over overlapping charges from both national and county governments, especially in the movement of goods across counties. This duplication has prompted a push for uniform licensing procedures under the proposed County Licensing (Uniform Procedures) Bill, 2022, which seeks to harmonise licensing across the 47 counties.

Currently, retail businesses must obtain a wide range of documents, starting with the single business permit and fire inspection certificate. Depending on the nature of operations, additional licenses include those from the Kenya Bureau of Standards, NEMA, the Dairy Board, the Pest Control Product Board, and sector-specific agencies such as the Pharmacy and Poisons Board and the Energy Regulatory Commission for sale of LPG.

Businesses must also secure approval from multiple music rights organisations including MCSK, KAMP, and PRISK, as well as permits for signage, loading zones, and other operational aspects.

Earlier, Kinyanjui visited Tatu City, a 5,000-acre Special Economic Zone (SEZ), where he held discussions with investors on enhancing the SEZ framework to attract more foreign direct investment into Kenya.

“With shifting global economic geopolitics, Kenya is increasingly becoming an investment destination for international companies, and SEZs like Tatu City offer a perfect plug-and-play opportunity for such firms,” he said.