The Nakuru County Government of Nakuru has embarked on reforming its tax regime through harmonization of fees and elimination of non-tariff barriers to trade.
This move is aimed at boosting the region’s attractiveness to both local and foreign investors.
The County is also reviewing a multiplicity of levies and taxes that are affecting its intra-county and inter-county trade by discouraging investments, while raising prices for the end consumer.
The Deputy Governor David Kones said the county was committed to averting situations, where businesses incur costs in multiple permits and licenses over and above the single business permit, adding that they were taking deliberate steps to reduce the cost of doing business that will help position Nakuru as an essential destination for local and foreign investments.
“As a county government, we are pursuing interventions that will make Nakuru the economic powerhouse of the region, thereby making it the destination of choice where trade and investment thrives,” said Kones.
The Deputy governor spoke in Nakuru when he met officials from the State Department for Investment Promotion (SDIP) and the Council of Governors (COG) who are holding a sensitization workshop in Nakuru on the implementation of the new County Licensing (Uniform Procedures) Act, 2024.
The workshop brought together stakeholders from Uasin Gishu, Nandi, Kericho, Bomet, Elgeyo Marakwet, West Pokot and Baringo Counties.
The State Department for Investment Promotion (SDIP) in collaboration with the Council of Governors (COG) and other key stakeholders, are currently developing comprehensive regulations and guidelines for the effective implementation of the new County Licensing (Uniform Procedures) Act, 2024.
Consequently, to ensure broad stakeholder input, the team is carrying out a series of workshops at county level to sensitize local representatives and the private sector on the Act’s provisions and gather feedback on the draft framework.
Thee deputy governor, who represented Nakuru governor Susan Kihika, said with the implementation of the County Licensing (Uniform Procedures) Act, 2024, traders across the county will benefit from easier business operations as the crucial legislation will help in standardizing licensing procedures, eliminating the current inconsistencies and bureaucratic hurdles that often hinder business growth.
Kones pointed out that the successful implementation of the County Licensing (Uniform Procedures) Act, 2024, will be a crucial step towards creating a more business-friendly environment in all the Counties and unlocking the country’s economic potential.
The Deputy Governor affirmed that the new legislation targeted to improve the working environment for business people and traders at the county level by creating an equal and efficient means of paying for licenses.
He explained that when devolution came into place in the country, it did not provide a uniform way of licensing traders, thus licensing procedures, methods and fees varied from one county to the other.
Kones cited situations where business people could own similar businesses in different counties, but are charged differently, even when owning varied licenses which contributes to the country being ranked low in terms of trading.
The deputy governor explained that the new law will enable the county to create a good working relationship between licensing officers and vendors in order to reduce the high incidences of harassment and intimidation from the public, adding that the law would be more beneficial to the consumer and the government as it will ease the cost of doing business and further enable young people to get licenses at affordable prices.
“You find that in some sectors like the food sector, business people are charged for multiple licenses like hygiene, sanitation and a single business permit which is expensive to a business owner, especially startups who end up making losses,” he regretted.
Among the areas where the county assemblies may enact further legislation on this Act include singular license application framework, categorization of licenses, forms of license application and fee payment or refund for the applications.
The County Executive for Trade, Tourism, and Cooperatives Stephen Muiruri pointed out that attracting and retaining investments entailed businesses partnering with the county government to enhance development through building infrastructure, restoration of natural resources and offering productive jobs in order to raise the living standards for every resident throughout the devolved unit.
He noted that economic survey findings by various institutions show Nakuru was fast rising to become the most preferred investment destination for local and international investors.
It is projected that the county has an economic potential worth Sh200 billion in agricultural value addition, manufacturing, geothermal exploration, tourism, and real estate.
Results of a survey released by the Institute of Economic Affairs show it is easier to start a business in Nakuru town compared to five other populous urban areas.
Economists attributed this to mainly reduced tax burden that has made it more attractive to investors. The study gave the county an overall score of 89 in the tax sub-cluster followed by Eldoret (78) and Machakos (67).
The bottom three in the category were Kisumu (64), Nairobi and Mombasa at 56 and 54 respectively. Nakuru county saw its land prices rise by an average of 12.7 per cent in 2017, according to the 2018 County Land Price Report.
In addition, the economic potential of Nakuru county was captured in a World Bank 2015 Survey which showed the county’s gross domestic product per capita at $1,413, the fourth-highest in Kenya after Kiambu, Nyeri and Kajiado.
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Caption
Nakuru County Deputy Governor David Kones (Fourth le