Business Climate in Kenya Deteriorates, Says Bidco Chairman
Nairobi, Kenya – Vimal Shah, Chairman of Bidco Africa, has voiced serious concerns about Kenya’s business environment, citing frequent policy changes, lack of incentives, and high taxation as major obstacles for the industry. Shah’s remarks highlight the growing challenges faced by businesses, particularly in the manufacturing sector.
“Kenya is not attractive to do business unlike Uganda and Tanzania because of the often changing policies, lack of incentives, high taxes, levies, and excise duties,” Shah said in a recent statement. He emphasized that these factors are making it increasingly difficult for businesses to operate efficiently and competitively within the country.
Shah pointed out that the production of edible oil, a significant industry in Kenya, has become particularly burdensome due to these issues. “The production of edible oil as a final product is expensive across all the 13 oil manufacturing industries in the country,” he noted. This, he argued, places Kenyan manufacturers at a disadvantage compared to their counterparts in neighboring countries.
The Bidco Africa Chairman’s comments come at a time when many businesses are grappling with economic uncertainty and rising operational costs. The high taxation and regulatory unpredictability in Kenya have forced some companies to reconsider their investment strategies, with some even contemplating relocation to more business-friendly environments.
In contrast, Uganda and Tanzania have been praised for their stable policies and supportive business environments. These countries have managed to attract significant foreign investment by offering more predictable regulatory frameworks and various incentives to businesses. Shah’s comparison underscores the competitive disadvantages that Kenyan businesses are currently facing.
Industry experts have echoed Shah’s sentiments, calling for urgent reforms to improve Kenya’s business climate. “The government needs to create a more stable and conducive environment for businesses to thrive,” said James Mwangi, an economic analyst. “Without such reforms, Kenya risks losing its competitive edge in the region.”
Shah’s candid assessment has sparked discussions among policymakers and business leaders about the need for a more strategic approach to economic policy. He urged the government to engage with industry stakeholders to address these challenges and create a more favorable environment for business growth and investment.
As Kenya navigates these economic challenges, the insights from prominent business leaders like Vimal Shah could serve as a catalyst for much-needed policy reforms. Ensuring a stable, predictable, and supportive business environment is crucial for sustaining economic growth and maintaining Kenya’s position as a key player in the regional market.
