The mechanics of joining the formal economy through registration with the central government of Kenya have been streamlined recently, and will be further streamlined with enactment of the Companies Bill. The only place formal registration may take place, however, is reportedly in Nairobi, presenting a disadvantage to MSMEs located outside of the capital. While some entrepreneurs suggested that applications for registration may be submitted in Kisumu and Mombassa for transfer to the Company Registry in Nairobi, very few private sector individuals were aware of such services, and this could not be confirmed. Moreover, even though registry procedures are clearly posted and relatively straightforward, corruption persists: businesses typically find that bribes to registry officials make the process move faster.
Registration with the national Company Registry is not the only formal aspect of business-start up: all businesses are also required to obtain, on an annual basis, a Single Business Permit from local authorities. Although in some regions this process runs smoothly, in others it can be hampered by bureaucracy, corruption, and delay.
As reflected by the Starting a Business indicator chart above, the BizCLIR scores suggest significant room for improvements across the board. The legal framework is currently the strongest framework area for starting a business. Social dynamics are also relatively strong. However, supporting institutions proved to be the weakest area, suggesting a need to strengthen available resources to assist with business development and increase awareness of these resources.
The information provided on this Web site is not official U.S. Government information and does not necessarily represent the views or positions of the U.S. Agency for International Development or the U.S. Government.
