Senate Deputy Speaker Kathuri Murungi /HANDOUTThe Senate and the Kenya Private Sector Alliance (Kepsa) have called for the removal of bureaucratic barriers hindering investment across counties, saying streamlined regulations and efficient service delivery are critical to unlocking economic growth, attracting investors, and strengthening devolution.
Speaking during the opening of the Senate Liaison Committee Roundtable with Kepsa, deputy speaker of the Senate and chairperson of the committee, Kathuri Murungi, said counties must urgently address persistent inefficiencies that continue to discourage investors despite ongoing devolution reforms.
He said investors are still grappling with unpredictable licensing procedures, multiple levies, fragmented regulations, delayed payments and bureaucratic bottlenecks that make it difficult to do business.
“Too many investors still face unpredictable licensing regimes, multiple levies, fragmented regulations, delayed payments and bureaucratic bottlenecks,” Murungi said, adding that such challenges stifle innovation, discourage investment and undermine the promise of devolution.
Counties, he observed, remain key engines of economic growth but are still constrained by administrative inefficiencies that slow service delivery and weaken investor confidence.
The challenge, he noted, is not only policy formulation but weak implementation of existing laws meant to improve the business environment.
“The gap between good policy and effective execution is what this Roundtable seeks to close,” he said.
“We must fix the red tape that is choking our counties if we are to unlock their full potential as hubs of agribusiness, manufacturing, digital innovation, tourism and trade.”
He pointed out that even with the County Licensing (Uniform Procedures) Act, 2024 in place, implementation across counties remains uneven.
Beyond licensing concerns, the discussions highlighted broader structural challenges affecting investment, including weak logistics systems, inadequate utility services, outdated market infrastructure, fragmented markets, and high production costs in agriculture.
Other issues raised included gaps in digital infrastructure, cybersecurity and data protection challenges, and inefficiencies at key trade points such as the Port of Mombasa — all of which continue to reduce county competitiveness.
The long-standing collaboration between the Senate and Kepsa also featured prominently in the discussions, with Murungi noting that it has contributed to key legislative reforms supporting investment and economic growth.
He cited laws such as the Climate Change Act, the Public Procurement and Asset Disposal Act, the National Electronic Single Window System Act, and the Sustainable Waste Management Act as some of the outcomes of this partnership.
Several Bills currently before Parliament, including the Artificial Intelligence Bill (Senate Bill No 4 of 2026), the Cooperative Societies (Amendment) Bill, and the Startup Bill, are also benefiting from private sector input.
“This roundtable continues that tradition. It is not merely a talk shop. It is a strategic platform for joint problem solving where legislation meets implementation and where policy meets the realities of doing business in our counties,” he said.
Murungi urged counties to strengthen institutional capacity, improve regulatory efficiency, modernize market infrastructure and ensure predictable service delivery systems to attract investors.
He also called for better coordination between national and county governments to eliminate duplication of roles and reduce unnecessary charges that burden businesses.
“These are not abstract issues. They directly affect jobs, livelihoods and the ease of doing business across our 47 counties,” he said.
He challenged participants to move from discussion to implementation, with the Senate pledging to fast-track necessary legislative interventions and strengthen oversight to ensure compliance.
The private sector, he added, remains key in shaping reforms through practical experiences and proposals.
The meeting concluded with a renewed call for counties to become more predictable, efficient and investor-friendly in order to attract investment, create jobs and strengthen devolution across the country.
