Kenya plans to disclose data on investment flow every quarter to help firms make timely decisions and also guide State incentives to high-potential sectors.
The Kenya Investment Authority (KenInvest) said the ongoing integration of systems of key State agencies enables for compilation of frequent verifiable data, including foreign direct investments (FDIs),
“We are getting to a point where on a quarterly basis we are able to have a view on which investments are coming in, which are in pipeline and which sectors are they in,” KenInvest Chief Executive Officer John Mwendwa said.
“Data and investment go hand in hand. What we are developing is a really good tool to ascertain what is happening in the investment space. So that integration is a critical point for us in this ecosystem” he added.
The KenInvest system is interlinked with those of a host of regulatory agencies including the Business Registration Service (BRS), the Kenya Revenue Authority, the National Environment Management Authority (NEMA), and the Directorate of Immigration Services.
The United Nations Conference on Trade and Development is leading a team that is building a system that will connect government databases for agencies involved processing of applications and approval of investments at the national and county government level.
The Kenya Investment Single Window project is being funded by the Dutch Government and the World Bank Group through the $150 million Kenya Jobs and Economic Transformation Project (KJET) project.
Kenya has been finding it tough to keep track of annual FDI flows. The country relies on UNCTAD’s annual World Investment Reports which it says are not “exactly inclusive” while the Foreign Investment Survey (FIS) by the Kenya National Bureau of Statistics and Central Bank of Kenya is done every two years.
“Through the ecosystem, we will know how many companies are registered, how many environmental assessment reports are in the pipeline, who has applied for power connection, who is getting a building approval etc,” Mr Mwendwa said. “So if BRS has registered 300 projects and Nema is processing 80 environmental reports, we will know we have investments from 80 projects.”
KenInvest says the system that Kenya is developing will ensure little human interaction, enabling investors to apply for permits and licences, get approval and pay electronically.
Generally, companies in Kenya need nearly 20 permits and licences to comply with various regulatory requirements, but this varies depending on the nature of the business and the sector.
Some of the permits businesses need to comply with include those on business registration and licensing, calibration, premise safety, environmental standards, food and beverages processing, waste management as well as water and sewerage rules.
Others are noise and vibration licenses, construction regulations, cess requirements, specialised materials certificates, controlled substance regulation as well as conservancy fees.
The firms have also cited overlapping duplicative roles performed by the Kenya Bureau of Standards, Nema, and Department of Weights and Measures in approving standards, labels, and calibrations for products.
Other State agencies that have been flagged for performing overlapping roles are the Directorate of Occupational Safety and Health Services, National Construction Authority, and counties in approving premise safety and health regulations.
“Although some applications can be completed online, the lack of integration among systems adds significant barriers for investors and entrepreneurs,” UNCTAD wrote in the 2024 World Investment Report.
“There is a pressing need for enhanced facilitation to elevate investment levels sufficiently to address interconnected economic, health, security and climate challenges.”
