Businesses that face delays in obtaining licenses from county governments for more than 28 days will now automatically be cleared to operate under new proposed regulations aimed at streamlining county trade procedures.
The County Licensing (Uniform Procedures) regulations of 2025 also seek to consolidate multiple county permits into a single licence, simplifying operations for traders and investors.
The initiative, spearheaded by the Investment, Trade and Industry ministry, aims to improve the investment climate and reduce bureaucratic obstacles.
Speaking to the National Assembly Committee on Implementation, Investment Promotion PS Abubakar Hassan Abubakar said the ministry is finalising regulations that will harmonise county trade licensing to ensure transparency, efficiency, and uniformity.
He explained that the current county licensing system is fragmented, slow, and often repetitive, forcing businesses to spend months or even years pursuing multiple approvals.
“Some companies take up to two years to get a single licence. These licences are not uniform and, in many cases, they are not automatic,” said Abubakar.
To tackle these challenges, the PS highlighted a plan built around five key interventions, with licensing reforms at its centre. The proposed changes will merge multiple county permits into a single unified licence, streamline the application process, and digitise approvals to reduce waiting times.
“We are putting in place a system where, if you do not receive a response from the county government within 28 days, your licence is automatically approved. No business should be kept waiting indefinitely,” Abubakar explained.
He added that the Council of Governors has been tasked with harmonising inter-county licensing to make the movement of goods and services smoother across counties. Currently, traders must obtain clearance at every county border, a process the ministry says is both costly and uncompetitive.
“The goal of my department is to increase the level of private investment in the Kenyan economy. For that to happen, both the national and county business environments must be competitive and predictable,” Abubakar said.
Beyond licensing reforms, the ministry is also developing county industrial policies, investment units, and a County Competitiveness Index to assess each county’s economic strengths and weaknesses. These measures are intended to guide targeted interventions, boost local industrialisation, and attract more investment promotion events to counties.
However, the discussion also revealed ongoing tensions between national and county authorities over licensing control.
Lawmakers, including Kathiani MP Robert Mbui, questioned whether the new regulations could undermine counties’ autonomy to set their own business rules. Committee chairperson Samuel Chepkonga warned against over-centralisation, emphasizing that counties should maintain the ability to legislate on local licensing matters.
“If every county makes its own licensing rules, businesses will face 47 different regimes that’s not sustainable for a unified market,” Abubakar noted.
