Lagging Private Sector Puts Kenya Middle Income Plan at Risk
SUNDAY JULY 23 2017
Kenya Daily Nation
Vision 2030 director-general Julius Muia. PHOTO | FILE | NATION MEDIA GROUP
In Summary
Business activity dropped to 47.3 per cent in June from 49.9 per cent in May, the slowest since the survey began in January 2014 and the third decline in the past four months.
The private sector’s lacklustre performance is threatening the country’s dream of attaining middle-income status by 2030, Vision 2030 director-general Julius Muia has said.
Kenya’s private sector business activity slowed in June, hurt by a decline in credit growth and worries among investors about violence during next month’s General Election, according to the latest Purchasing Manager’s Index (PMI) market survey by Stanbic Bank Kenya #ticker:CFC.
Business activity dropped to 47.3 per cent in June from 49.9 per cent in May, the slowest since the survey began in January 2014 and the third decline in the past four months.
“For Kenya to achieve a middle income status by 2030, the government should continue improving the ease of doing business in the country.
“It must also make sure that laws governing business are attractive, appropriate and supportive for the growth of the economic pillar of vison 2030,” said Muia at a press briefing on Friday.
President Uhuru Kenyatta last year assented to the Companies Act, the Insolvency Act, the Special Economic Zones Act, the Business Registration Service, the Companies and Insolvency Legislation (Consequential Amendments) Act 2015 and Finance Act amendments 2015 to make the economy more business-friendly.
The new law makes it possible for one person to set up a company whereas in the past it required at least two people to register a company.
It also remove the condition that small companies should have a company secretary just like big firms, as well as the removal of the requirement that private firms should have an annual general meeting each year.
The Special Economic Zones Act, the first of its kind in Africa, aims to create an enabling environment for global and local investments in specially designated zones.
Kenya has set aside 3,400 square kilometres of land to be used for development of special economic zones in Kisumu, Lamu and Mombasa.
Kenya Daily Nation
Vision 2030 director-general Julius Muia. PHOTO | FILE | NATION MEDIA GROUP
In Summary
Business activity dropped to 47.3 per cent in June from 49.9 per cent in May, the slowest since the survey began in January 2014 and the third decline in the past four months.
The private sector’s lacklustre performance is threatening the country’s dream of attaining middle-income status by 2030, Vision 2030 director-general Julius Muia has said.
Kenya’s private sector business activity slowed in June, hurt by a decline in credit growth and worries among investors about violence during next month’s General Election, according to the latest Purchasing Manager’s Index (PMI) market survey by Stanbic Bank Kenya #ticker:CFC.
Business activity dropped to 47.3 per cent in June from 49.9 per cent in May, the slowest since the survey began in January 2014 and the third decline in the past four months.
“For Kenya to achieve a middle income status by 2030, the government should continue improving the ease of doing business in the country.
“It must also make sure that laws governing business are attractive, appropriate and supportive for the growth of the economic pillar of vison 2030,” said Muia at a press briefing on Friday.
President Uhuru Kenyatta last year assented to the Companies Act, the Insolvency Act, the Special Economic Zones Act, the Business Registration Service, the Companies and Insolvency Legislation (Consequential Amendments) Act 2015 and Finance Act amendments 2015 to make the economy more business-friendly.
The new law makes it possible for one person to set up a company whereas in the past it required at least two people to register a company.
It also remove the condition that small companies should have a company secretary just like big firms, as well as the removal of the requirement that private firms should have an annual general meeting each year.
The Special Economic Zones Act, the first of its kind in Africa, aims to create an enabling environment for global and local investments in specially designated zones.
Kenya has set aside 3,400 square kilometres of land to be used for development of special economic zones in Kisumu, Lamu and Mombasa.
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