NAIROBI, Kenya, Nov 6 – Kenya was ranked the third best place to do business in Africa according to Ease of Doing Business 2018 report by World Bank.
The new report saw Kenya move 12 places to position 80 globally out of 190 countries compared to position 92 in the 2017 report.
The country was ranked the third position in the continent behind Mauritius and Rwanda.
Industrialization Cabinet Secretary Adan Mohammed says the improvement was mainly helped by reforms in starting a business, dealing with construction permits, getting electricity, access to credit, paying taxes and trading across borders.
“The Improvements are driven by efforts by the government and the private sector in improving the business climate. Kenya has delivered last year the highest number of business-related reforms on the African continent,” he said.
Foreign Direct Investments in Kenya hit Sh207 billion in 2016 from Sh40.1 billion in 2013.
Kenya has moved 53 positions over the last three years and the new position is Kenya’s best performance in the last 15 years.
Last year, Kenya moved 21 places position 92 globally out of 190 countries making it the third most improved economy for two years in a row.
In the 2016 report, Kenya was in position 113 having moved 28 positions from the previous year.
The country has a target to reach top 50 by 2020.
According to the report, Kenya improved the reliability of electricity by investing in its distribution lines and transformers and by setting up a specialized squad to restore power when outages occur.
Kenya also improved access to credit information by starting to distribute data from two utility companies.
“Kenya made paying taxes easier by implementing an online platform, iTax, for filing and paying corporate income tax and the standards levy. Kenya also reduced the time for import documentary compliance by utilizing its single window system, which allows for electronic submission of customs entries,” the report states.
Other notable improvements include making construction permits less expensive by eliminating fees for clearances from the National Environment Management Authority (NEMA) and the National Construction Authority as well as merging procedures required to start-up and formally operate a business.
New Zealand is ranked the first position followed by Singapore and Denmark while Somalia emerged the worst followed by Eriteria and Venezuela.
India was the most improved economy jumping 30 ranks to hit the top 100 mark