Kenya must remove regulatory hurdles and deepen cooperation between the government and private sector if it is to attract more investment, create jobs and strengthen its position as a regional maritime and logistics hub, Prime Cabinet Secretary Musalia Mudavadi has said.
Mudavadi said investors needed a stable and predictable business environment, warning that regulations should not be introduced without considering their impact on businesses and the wider economy.
“Government must never look at the private sector as opposition. We are supposed to team together to deal with the issues at hand,” he said.
He spoke in Nairobi during a private sector business roundtable attended by representatives from the shipping and maritime industry.
The meeting came after the Kenya Shipping Agents Association (KSAA), which represents shipping lines, ship owners and charterers incorporated in Kenya, raised concerns about some provisions contained in the Maritime Transport Operations Regulations, 2024.
Mudavadi said the discussions gave the government and industry players a chance to review difficulties that had emerged from the implementation of the regulations and work towards solutions that would support both the sector and the economy.
“We cannot introduce arbitrary regulations before we understand the environment we are operating in,” he said.
He said the government was keen to protect the integrity of Kenya’s maritime industry without putting in place measures that could make the country less attractive to investors.
“Our objective is to find solutions to protect the integrity of our maritime sector,” Mudavadi said.
The Prime Cabinet Secretary also called for increased involvement of Kenyan investors in shipping and other businesses linked to the maritime industry.
He proposed that stakeholders explore ways of allowing shipping companies to cross-list their shares on the Nairobi Securities Exchange, saying this could provide a way for more Kenyan investors to participate in the sector.
Mudavadi further urged the industry and government to look at international practices and consider reforms that could improve Kenya’s role in global supply chains.
Among the areas he raised was the need to review restrictions on foreign ownership in the insurance industry as part of efforts to open up the sector and support wider investment.
He said such changes should form part of a larger discussion on Kenya’s economic direction as the country looks beyond Vision 2030.
“We cannot enter and conclude beyond Vision 2030 while still grappling with regulations,” he said.
Mudavadi also pointed to Kenya’s importance as a transport gateway for several landlocked countries that rely on its corridors to move goods.
He listed South Sudan, Uganda, Burundi, Ethiopia, eastern Democratic Republic of Congo and Rwanda among the countries that depend on Kenya’s transport network.
He said disruptions in global shipping had also shown why Kenya needed to build a stronger and more reliable maritime sector.
“The Middle East conflict reminds us that the resilience of international trade cannot be taken for granted,” he said.
The roundtable also addressed employment and skills development under the Blue Economy, with Mudavadi saying Kenya needed to take greater advantage of opportunities available in the maritime industry.
He said the Fourth Medium Term Plan covering 2023 to 2027 has set a target of training and recruiting 3,000 Kenyan youths to work as seafarers on international shipping lines.
However, Mudavadi said Kenya should consider raising the target by learning from countries such as the Philippines, which has built a large pool of trained seafarers working in the global maritime industry.
“We need to increase Kenya’s participation in the maritime sector,” he said.
Mudavadi said the push for stronger partnerships was also driven by the need to give young Kenyans access to real economic opportunities rather than short-term support.
“Kenyans are saying they are not satisfied with tokens. They need to see genuine partnerships. Let us make it realistic for everyone to benefit from the ecosystem,” he said.