The ease of doing business in Kenya has improved significantly over the last 12 months, attributed to the rise in the use of technology.
The 2013 edition of the World Bank’s The Ease of Doing Business Report 2013 ranked Kenya in position 126 out of 185, up from 132nd last year.
One of the notable moves the report acknowledged was the Kenya Revenue Authority’s (KRA) upgrade of its systems, enabling taxpayers to remit tax online and enabling investors to start up their business quickly and easily.
The system also reduced drastically the time spent in calculating corporate income tax by about three days (53 hours).
“Paying taxes became easier in Kenya in 2011/12. An online system for value added tax introduced by the Kenya Revenue Authority in 2009 has gained in popularity among taxpayers over the past three years,” reads the report.
The report also noted Kenya had launched an online platform to facilitate the process of dealing with construction permits, allowing architects to submit and track the status of permit applications online.
However Kenya’s overall performance in terms of the ease of doing business dropped four points compared to 2012, owing to inefficiencies in enforcing contracts. In this index Kenya dropped to rank 185 from 149.
The World Bank report also acknowledged the strides made by the East African Community (EAC) in integration, a process it said has created a conducive investment climate.
“Over the last eight years, the five EAC members Burundi, Kenya, Rwanda, Tanzania and Uganda have continued to take steps to make it easier for local firms to start up and operate,” states the report.
“Driving these efforts has been recognition that regional integration alone is not enough to spur growth. The EAC needs an investment climate including a business regulatory environment well suited to scaling up trade and investment and can act as a catalyst to modernise the regional economy.”
