Traders could soon bypass long waits for county approvals under new reforms that will grant automatic business licences after 28 days if no response is issued. The proposed County Licensing (Uniform Procedures) Regulations, 2025 are set to overhaul how counties handle permits, merging multiple approvals into a single licence and introducing digital systems to cut red tape.
The reforms, driven by the Ministry of Investment, Trade and Industry, aim to dismantle bureaucratic hurdles that have slowed down enterprise growth. Investment Promotion Principal Secretary Abubakar Hassan Abubakar, while appearing before the National Assembly Committee on Implementation, said the current licensing regime is “slow, inconsistent, and repetitive,” leaving businesses stranded for months or even years.
“Some companies take up to two years to secure a single licence. These licences are not uniform and, in many cases, they are not automatic,” Abubakar told MPs, adding that the new rules will guarantee predictability for investors.
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Under the new framework, five strategic measures will anchor the reforms: consolidating permits into one licence, standardising application procedures, digitising approvals, enforcing the 28-day automatic clearance rule, and coordinating licensing across counties.
“We are putting in place a system where, if you do not receive a response from the county government within 28 days, your licence is automatically approved. No business should be kept waiting indefinitely,” Abubakar explained.
The ministry has directed the Council of Governors to harmonise licensing systems across counties to ease the movement of goods and services. Currently, traders transporting products across county borders must seek clearance at every stop, a process Abubakar described as “costly and inefficient.”
The ministry is preparing county-specific industrial policies, establishing investment facilitation units, and rolling out a County Competitiveness Index to measure economic performance. These tools are expected to guide targeted development and attract private capital into local economies.
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But the reforms have stirred debate over the balance of power between national and county governments. Legislators questioned whether the new rules could erode county autonomy. Committee chair Samuel Chepkonga warned that while harmonisation is necessary, counties must retain authority to regulate businesses within their jurisdictions.
Abubakar countered that fragmented systems would undermine Kenya’s competitiveness. “If every county makes its own licensing rules, businesses will face 47 different regimes, which is not sustainable for a unified market,” he said.
The proposed regulations are now in their final stages of drafting. Once enacted, they are expected to transform Kenya’s business environment by reducing delays, enhancing transparency, and positioning the country as a more attractive destination for investment.
By Masaki Enock
