[Column] Bob Koigi: Kenya business community’s expectations of the new government
Kenya’s incoming government following the just concluded elections takes office amid ballooning public debt, chronic drought, COVID-19 effects, inflation, unemployment and the impacts of global shocks that have buffeted the nation.
In the wake of such shocks, president elect Dr. William Ruto’s in-tray is full as he seeks to steady the ship and bolster the economic prosperity of the East African powerhouse.
A series of surveys, from Central Bank of Kenya, Kenya Private Sector Alliance, KEPSA and Kenya Association of Manufacturers, KAM, among other bodies have painted a picture of hope and optimism among CEOs and business leaders on improved prospects in the country post-election.
Yet the business community is alive to the numerous challenges the country has had to contend with and how they have taken a toll on the cost and way of doing business.
Anchor economic sectors such as agriculture, manufacturing, tourism and transport have borne the brunt of the uncertainties, political climate and global happenings.
For starters, the new government should work on strengthening our local sectors and supply chains to make labour and products competitive. The Russian-Ukraine war and COVID-19 pandemic have exposed the Achille Heels that continue to plague our economic development. Poor and anti-local empowerment policies have seen Kenya rely on imports that constantly expose Kenya to global shocks. There has to be deliberate consultation between the government and private sector and dedicated investment in making local businesses thrive and ensuring that our business environment is competitive in order to attract local and foreign investors.
The devolved government has positioned itself as a pivotal investment vehicle and should be supported by the national government if we are to spur industrial growth, create more jobs, empower businesses and net investors.
Kenya has been at the front seat of championing for integration which continues to pay dividends. As an active member state of the East African Community, it has pushed for free borders and liberalized trade which has not only opened the country to regional investments but connected its citizens and businesses to opportunities across the borders. Yet there is so much that remains to be done to bolster this resolve and connect Kenya to more business opportunities to tap from. The government must therefore continue actualizing this dream by pushing for a more integrated East African Community and investing in local businesses to make them competitive regionally.
The continental trade pact, The African Continental Free Trade Area, AfCFTA, couldn’t have come at an opportune time. As Kenya, like the rest of the African countries, look for innovative ways of deepening trade with each other, the government should work closely with the private sector in tapping into the over 1.2 billion market that offers a world of business opportunities.
While there are competing needs and the new government has its priorities set, the Kenyan business community is anticipating a renewed business environment with policies and investments that focus on Micro, Small and Medium Enterprises, MSMEs, creating a conducive environment for big companies to flourish while opening up the country to trade with the world by easing the cost of doing business. This, while protecting local businesses from external shocks.
Bob Koigi is the East African Region Editor at Africa Business Communities