Passage of new law to boost investment climate

By Luke Anami

The approval of the Proposed Constitution is a big boost to the economy, members of the business community have said.

Speaking immediately after Kenyans overwhelmingly voted for a new constitution, Equity Bank Managing Director Dr James Mwangi said the passage of the proposed law will jumpstart the economy.

"The tranquility that prevailed throughout the voting period attests to the fact that the country is on new path to development," Mwangi said in an interview with The Standard.

Investor confidence

"The historic vote on the constitution is set to restore investor confidence and boost the country’s standing on the international stage."

The recent activities at the Nairobi Stock Exchange (NSE), whose 20-Share index increased by 96 points on the eve of the referendum, are a pointer to growing investor confidence in the country.

"Governance is a key aspect of this constitution, and Kenya will now become predictable in the way in which we are governed," Mwangi said.

Mwangi hailed the new document as creating structures that minimise political interference, bureaucracy and check the runaway corruption.

Describing the new constitution as business-friendly, the chairman Kenya Private Sector Alliance (KEPSA) Patrick Obath, said it is time Kenyans kept vigil to ensure what is contained in the new constitution is not tempered with by Parliament.

"The business community is considering the formation of a caucus to ensure MPs stick to the schedule as contained in the Constitutional Review Act," Obath said, adding that the new constitution provides clear systems of governance that have no room for roadside decisions.

"Devolution structures in the proposed law is set to stimulate economic growth in the rural areas further empowering them," Obath said.

Federation of Kenya Employers Chair Dr Cleopa Mailu said the new law would create the necessary business environment for investment.

"The new laws usher in a new order for doing business, which employers should take advantage of," Dr Mailu, also CEO Nairobi Hospital, said.

"Now is the time for the business community, trade unions, civil society and religious bodies to come together and midwife sit this constitution," said he.

Chief Executive of Bidco Oil Refineries Vimal Shah said the business environment will significantly improve under the new constitutional dispensation with clear lines of governance and responsibility.

"Kenya should now ready for direct foreign investments with the coming into place of new governance structures" Shah said.