Business community praises new laws

By Luke Anami

The business community has praised the new Constitution, describing it as a major factor to their prosperity.

The community will form a committee to assist in the implementation of the new Constitution, said sector players. The team will mainly examine the new laws against the old ones to identify areas of conflict.

Welcoming the promulgation of the new Constitution, Kenya Private Sector Alliance (Kepsa) said the task of formulating 49 legislations should not be solely left to politicians.

"In order to operationalise the new laws, 49 pieces of legislation have to be put in place within the next five years," Patrick Obath, chairman Kepsa said.

"The realisation of the real change is in how we marry the new laws with the existing ones by identifying the areas of conflict," he said.

The business community, that played a critical role by mobilising resources to campaign for the Proposed Constitution before the referendum, said the implementation should ensure we do not repeat past mistakes.

"It is only by examining our current laws such as the Company Act, State Corporations Act, and others, that we would identify what can work in the new Constitution," Obath said.

The business community, viewed as a major beneficiary of the new laws observed the new Constitution is likely to stabilise the political environment heralding a new economic order.

"The new Constitution will stabilise the political climate through systematic provisions on how we are governed thereby attracting direct foreign exchange and investment," said Obath.

He singled out devolution as the real test in the implementation.

"It is how the counties operate and generate income that will determine the success of the process," the Kepsa chairman said.

He, however, cautioned that the business community would have to wait a little longer before they can benefit from the new laws.

"The gains are not going to be immediate. We must be patient with the implementation," said he.

Immediate significant role the new laws will play in the economy is the strengthening of institutions according to Central Bank Governor Njuguna Ndung’u.

"The new Constitution is a legal instrument that will strengthen institutions," Prof Ndungu said. "Each institution will know its role thereby minimising conflict."

The Federation of Kenya Employers says respect for human rights as provided for in the new Constitution is the first step towards realisation of a new beginning.

"The foundation of a nation is anchored on a good constitution that protects and upholds the rights of each citizen," said Dr Cleopa Mailu, National Chairman Federation of Kenya Employers.

"It spells out the way one should be governed and singularly enhances harmony and peaceful co-existence."

The Bill of Rights has been acclaimed as revolutionary. It spells out the rights and freedoms of individuals.

The Bill of Rights, which applies to all laws and binds all State organisations, has been hailed as the foundation of strong governance structures in the public and private sectors.

"Respect of the rule of law is the foundation for good governance system, capable of attracting initial investment," said Mailu, who is also the CEO, Nairobi Hospital. "Investors want to put their money where there is order. The new Constitution provides the framework."

Darshan Chandaria, the grandson of Kenya’s famous Industrialist Manu Chandaria, said the new Constitution would be the avenue for a better future for upcoming business people.

"Countries like Britain and the US have better business environments that attract capital, a major investment component in business," said Darshan, a director at Chandaria Industries.

"The new Constitution is modelled on those of stronger economies and it heralds a new business order," he said.

He said the era of restrictive business laws is over and Kenyans should take exploit the advantages.

"We expect tribalism to come down as it is your acumen that should count and not your tribe or colour of the skin," Darshan said.

Vice-chairman of the Kenya Association of Manufacturers, Polycarp Igathe said the separation of politics from business as envisaged in the new laws would minimise business risks.

"Once the economy begins to work, it will stimulate entrepreneurship at the local level thereby generating revenue for the counties," said Igathe.

"It is how it works that is critical to the success of the implementation process."