Senate pushes counties to cut red tape to boost investment and jobs

The Senate has stepped up calls to remove delays and complicated procedures that continue to slow down investment across counties, saying that smoother regulations and faster service delivery are key to making devolution work better and boosting local economic growth.

The concerns were raised during the opening of the Senate Liaison Committee Roundtable with the Kenya Private Sector Alliance in Naivasha, where Deputy Speaker of the Senate and Chairperson of the Senate Liaison Committee, Kathuri Murungi, urged counties to build systems that attract investors and make it easier to do business.

The meeting, held under the theme “Enhancing County Competitiveness: Fixing the Red Tape, Fueling Investments,” brought together Senate committee chairs and private sector leaders to discuss ways of improving the business environment across all counties.

Murungi said that although devolution has delivered major gains over the past 15 years, investors still face slow and unpredictable systems that make it hard to operate in many counties.

“Too many investors still face unpredictable licensing regimes, multiple levies, fragmented regulations, delayed payments and bureaucratic bottlenecks,” he said.

“These challenges stifle innovation, discourage investment and undermine the very promise of devolution.”

He stressed that counties are central to Kenya’s economic growth and should be developed into strong centres for agribusiness, manufacturing, digital innovation, tourism and trade.

Murungi noted that even though the County Licensing (Uniform Procedures) Act, 2024 was introduced to simplify licensing processes, its rollout has not been consistent across counties.

“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 to the long-running cooperation between the Senate and the private sector, saying it has already supported the development of key laws aimed at strengthening investment and economic growth.

He listed 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 laws shaped through the partnership.

Murungi added that ongoing Bills in Parliament are also being refined with input from the private sector, including the Artificial Intelligence Bill (Senate Bill No. 4 of 2026), the Cooperative Societies (Amendment) Bill and the Startup Bill.

“Over the years, the collaboration between the Senate and the private sector has produced tangible results,” he said.

“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.”

Murungi said the discussions are focused on strengthening county institutions, improving regulatory systems, enhancing cybersecurity and data protection, upgrading logistics and utilities, modernising markets, improving efficiency at the Port of Mombasa, and bridging the digital gap.

The forum is also reviewing how to improve agribusiness by lowering production costs, building climate resilience, and addressing fragmented markets that limit farmers and traders.

He reaffirmed the Senate’s role in protecting devolution through oversight, better coordination of laws, and fair allocation of resources to counties.

“These are not abstract issues. They directly affect jobs, livelihoods and the ease of doing business across our 47 counties,” he said.

Murungi called on all participants to focus on practical solutions rather than just identifying challenges.

“I urge all participants to engage candidly and constructively. Let us move beyond diagnostics to concrete, actionable recommendations. The Senate stands ready to fast track necessary legislative interventions and provide robust oversight to ensure implementation,” he said.

He also urged the private sector to play a stronger role in shaping policies by sharing real experiences and practical ideas to improve the investment climate.

“To the private sector, your voice is indispensable. Bring us your practical experiences and bold proposals,” he said.

He further called on senators and county leaders to take responsibility in creating stable, competitive and investor-friendly environments that can attract investment and create jobs.