Competition Authority of Kenya (CAK) has said the country stands to gain more than Ksh 77.7 billion in additional GDP if it accelerates pro-competition reforms across key sectors, according to a new report released together with the World Bank.
The study, launched in Nairobi, shows that opening up markets—particularly in electricity and professional services—could increase value-added growth by 7.5 per cent. Broader structural reforms could also raise annual GDP by 1.4 per cent and create more than 400,000 jobs.
CAK Director-General David Kemei said the findings reaffirm the strong link between competitive markets, productivity and overall economic resilience.
He noted that although Kenya has made progress since the 1980s, the economy is still slowed down by restrictive regulations, state dominance in some sectors, and high barriers that limit new entrants.
“The room for growth is still quite high, even within the current fiscal realities,” he said.
The report recommends eliminating rules that distort fair competition, including discriminatory licensing regimes, rigid minimum fees and loss-making state-owned enterprise interventions that crowd out private players.
It also highlights county-level barriers, inefficient logistics and structural challenges in agriculture, electricity, fertilizer distribution and professional services.
Kemei called for a whole-of-government approach to drive reforms, warning that uncompetitive markets raise business costs, stifle SMEs and hurt consumers.
He added that ongoing changes—such as the Competition Amendment Bill 2025, stronger buyer-power enforcement and digital-market oversight are vital to reducing prices, improving services and attracting more investment.
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