10.02
The report focuses on local and national regulations that affect 4 stages in the life of a small- or mid-sized domestic enterprise: starting a business, dealing with construction permits, registering property, and enforcing contracts.
See full report.
Main findings:
Narok, Malaba and Thika lead the overall ranking on the four indicators measured in the report. Isiolo, Nairobi and Kilifi lag behind other localities (table 1).
One of the reasons it takes longer to start a business in Kenyan localities is the many steps required: 3 more than the Sub-Saharan Africa regional average and 3 times as many as in Senegal. Starting a business is fastest and least expensive in Nairobi at 34 days and 36% of income per capita. It is slowest in Narok with 81 days, while in Malaba, the cost is almost twice as high as in Nairobi.
The process to obtain construction-related permits and clearances is easiest in Narok, Nyeri and Malaba, but more cumbersome in Isiolo, Thika and Mombasa. Obtaining all permits to build a warehouse and hook it up to utilities takes less than 70 days in Narok, making it the 15th fastest location worldwide, the same as Denmark.
Registering property is fastest in Mombasa, where it takes 23 days (figure 1). In Isiolo, a special transfer tax levied by the County Council makes registering property almost as expensive as in the Syrian Arab Republic, the world’s most expensive place to register property.
Resolving a commercial dispute is speedy in Malaba, because the courts in Bungoma, where these are heard, are strict on adjournments. As a result, the 11 months needed to enforce a contract in Malaba are less than the OECD average (15.5 months).
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