Businesses across Kenya could soon enjoy faster approvals and fewer bureaucratic hurdles if new regulations on county licensing are passed into law.
The proposed County Licensing (Uniform Procedures) Regulations of 2025 aim to simplify how traders obtain operating permits, ensuring that no business is delayed unnecessarily by red tape.
Under the new proposal, if a county government fails to approve or reject a business licence within 28 days, the business will automatically be cleared to operate.
This automatic approval clause is among a series of reforms by the Ministry of Investment, Trade, and Industry intended to make it easier to do business across countries, eliminate inconsistencies in local regulations, and create a more predictable investment environment.
While appearing before the National Assembly Committee on Implementation, the Principal Secretary for Investment Promotion, Abubakar Hassan Abubakar, said the ministry is finalising the regulations that will harmonise trade licensing procedures across all 47 counties.
He noted that the current system is fragmented, with each county having its own rules, timelines, and payment procedures — a situation that has long frustrated entrepreneurs and investors.
“Some companies take up to two years to get a single licence. These licences are not uniform and, in many cases, they are not automatic,” Abubakar said.
The PS said the ministry’s reform agenda is anchored on five strategic interventions, with licensing reform being one of the most urgent.
The proposed regulations, he explained, will merge the numerous county permits into a single, standardised licence, making it easier for businesses to comply with requirements regardless of where they operate.
Abubakar emphasised that the new system will not only simplify the process but also introduce a digital platform to handle applications and approvals.
This move is expected to reduce delays and eliminate human interference that often slows down or complicates the process. The digitisation of approvals will also allow applicants to track their progress in real time, improving transparency and accountability.
He said the aim is to make the licensing process fair, predictable, and uniform across all counties, ensuring that investors no longer have to navigate different rules depending on location.
“If every county makes its own licensing rules, businesses will face 47 different regimes that’s not sustainable for a unified market,” the PS noted.
Abubakar further clarified that issues concerning payment systems, timelines, and other operational details are already outlined in the parent Act.
The new regulations will complement this law by establishing a County Licensing Board, which will oversee implementation and ensure compliance across all counties.
Once adopted, the framework is expected to ease the burden on entrepreneurs, reduce unnecessary costs, and boost investor confidence in county governments.
The ministry hopes that by cutting down bureaucratic red tape and enforcing uniform procedures, Kenya can strengthen its competitiveness and create a more enabling environment for both local and foreign businesses.
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