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Investors complain over high transport costs in Kenya

By Lee Mwiti | Updated Wed, January 11th 2017 at 00:00 GMT +3
Kenya Private Sector Alliance (KEPSA) CEO Carole Kariuki

The private sector has cited high logistical costs as one of the biggest impediments to doing business in Kenya.

The sector is also concerned over the bureaucratic bottlenecks that gag quick land accusation despite the many infrastructural projects that the Government has put up in recent times.

“A lot of work has to be done on the regulations relating to logistics. Delays in land acquisitions and sales documents alongside high transport costs remain leading issues that turn away potential investors,” said Kenya Private Sector Alliance (KEPSA) Chief Executive Office Carole Kariuki.

She spoke at the signing of a partnership with global publishing, research and consultancy firm Oxford Business Group (OBG) on Monday.

Ms Kariuki said if the State does not act fast to address these impediments, achievement of Vision 2030 goals will remain a pipe dream.

CONTINUED GROWTH

The Kepsa boss also urged the Government to stop restricting Kenya’s Public-Private Partnership (PPP) framework to infrastructural projects.

“PPPs should be used more widely across all the sectors of the economy rather than being restricted primarily to the country’s infrastructure projects. I reckon that further work is needed in the current PPP framework,” she said.

Ms Kariuki added that despite the current framework showing signs of improvement in its application, the Government should put more effort in making it more viable.

“We believe that the current framework is working well only for large projects. In order for it to be improved, the Government needs to focus on creating bankable projects. Furthermore, the State must also clarify exactly what constitutes a public-private partnership,” she said.

Ms Kariuki also called on investors to take up opportunities in the country’s agro-processing and manufacturing sectors, saying according to research done by her organisation, the sectors were showing signs of continued growth.

OBG Country Director for Kenya Veselina Kracheva said KEPSA’s input was welcome given the increased contribution that Vision 2030 expects from the private sector to actualise the economic blueprint.

“The Kenya Private Sector Alliance plays a key role in the country’s efforts to boost private sector participation in the economy and attract foreign investment,” said Ms Kracheva.

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