Features

Too many licenses bad for business

Friday, March 1st, 2024 08:08 | By
Homa Bay Governor Gladys Wanga speaking during the Homa Bay International Investment Conference 2024. PHOTO/Gladys(@gladyswanga)/X
Homa Bay Governor Gladys Wanga speaking during the Homa Bay International Investment Conference 2024. PHOTO/Gladys(@gladyswanga)/X

Governors’ concerns about licenses being a hindrance to the ease of doing business are valid. The current framework not only weighs down commerce but also discourages investment.


Consolidating or streamlining certain licenses would create a more conducive environment for business growth and foster economic expansion.


During the Homa Bay International Investment Conference 2024, Governors James Orengo (Siaya), Paul Otuoma (Busia), and Gladys Wanga (Homa Bay) emphasized how the requirement to obtain licenses from multiple departments not only hampers businesses but also eats into profits.


The arduous process of acquiring multiple licenses not only dampens entrepreneurial enthusiasm but also undermines the potential for robust economic growth. It is imperative for county governments to consolidate and streamline these licensing procedures for the benefit of all stakeholders.


The current multitude of licenses presents a barrier to entry for aspiring entrepreneurs. Navigating through numerous licensing requirements entails bureaucracy that consumes valuable time and resources. This environment not only stifles innovation and competition but also perpetuates economic stagnation.


Moreover, the fragmented nature of licensing requirements complicates compliance efforts for existing businesses. Juggling multiple permits from disparate departments not only escalates administrative overheads but also exposes businesses to the risk of violating regulations.


More licenses within county governments act as a deterrent to foreign investors because negotiating regulatory hurdles dissuade potential investors from allocating their capital to Kenya, thus depriving counties of much-needed foreign direct investment and impeding its economic potential.


Simplifying the licensing process will create a more conducive environment for business expansion and investment, stimulating job creation, enhancing productivity, and catalyzing innovation in counties.


This issue warrants attention in the legislative arena, particularly in response to concerns voiced by investors facing burdensome licensing procedures, particularly in outdoor services. Further, the national government should consider reducing tariff barriers to enhance investor appeal.


We encourage members of the Senate the address the issue as fast as possible.

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