Nairobi, September 30, 2009—A
World Bank and IFC report analyzing business regulation in Kenya finds
wide variation across localities. Among the 11 Kenyan localities studied,
doing business is easiest in Narok, Malaba, and Thika. It is most difficult
in Isiolo, Nairobi, and Kilifi.
Doing Business in Kenya 2010,
released today, studies business regulation from the perspective of a small
to midsize domestic firm. The localities covered by the report (from easiest
to most difficult for doing business) are Narok, Malaba, Thika, Kisumu,
Mombasa, Nyeri, Garissa, Eldoret, Kilifi, Nairobi, and Isiolo.
The study covers four Doing Business
topics—starting a business, dealing with construction permits, registering
property, and enforcing contracts. Nairobi has the fastest time and lowest
cost for starting a business, at 34 days and 36.5 percent of income per
capita. But it lags behind other localities in the time needed to register
property or enforce a contract through the courts. The other major business
center, Mombasa, ranks fifth overall. It is the best-performing locality
in registering property, with a time of 23 days, and ranks third in starting
The report finds that dealing with construction
permits takes the least time in Narok, where obtaining all permits to build
a warehouse and hooking it up to utilities requires fewer than 70 days.
Registering property is most expensive in Isiolo, as a result of a special
transfer tax levied by the County Council. Resolving a commercial dispute
takes less time in Malaba than the average in high-income countries belonging
to the Organization for Economic Cooperation and Development.
“We hope that by showing how the time
and cost burden of selected business regulations differs in localities
across the country, we help cities learn from one another—and adopt local
good practices to compete nationally, regionally, and globally,” said
Penelope Brook, Acting Vice President, Financial and Private Sector Development,
World Bank Group.
Doing Business in Kenya 2010 was
produced at the request of the Government of Kenya with support
from the Kenya Investment Climate Program funded by the World Bank Group
and the Dutch Government.
For information, please visit www.doingbusiness.org/kenya
About the Investment Climate Advisory Services of the World Bank Group
The Investment Climate Advisory Services
of the World Bank Group help governments of developing and transition countries
implement reforms to improve and simplify their regulatory environment
for businesses and foster and retain investment, thus fostering competitive
markets, growth, and job creation. Funding is provided by the World Bank
Group (IFC, MIGA, and the World Bank) and over fifteen donor partners working
through the multidonor FIAS platform.