KENYA – The International Finance Corporation (IFC), the financial institution of the World Bank has offered to invest US$4.8 million (Sh490 million) in technical advisory services to the Kenyan government to boost businesses.
The deal is expected to help in promoting business reforms especially in the private sector to spur growth, reports Business Daily.
The project, dubbed The Kenya Investment Climate Project (KICP 3), is expected to run until December 31, 2021.
It comes amid an improvement in Kenya’s ranking in the World Bank’s Doing Business report which assesses regulations that encourage business activity and those that constrain it.
The country was ranked at position 61 in the 2019 edition of the survey, climbing 19 places from 80 last year on the back of reforms across ease in property registration and resolution of bankruptcies, among other areas.
“KICP 3 is one of three projects under the umbrella Competitiveness Enhancement Programme whose main goal is to strengthen Kenya’s competitiveness and job creation potential through targeted private sector enabling interventions,” IFC said.
“KICP 3 specifically aims to strengthen the business environment, enhance efficiency and transparency and open markets in key sectors of the economy through targeted legal and regulatory improvements at national and subnational levels.”
The project’s success will be evaluated in terms of direct private sector savings, investments and jobs generated, growth in business formalisation, and investment enabling reforms at both the national and county government level.
Kenya’s latest ascent in the ease of doing business survey came as a result of several reforms and initiatives.
Resolution of insolvency, for instance, was made easier by laws allowing the continuation of the debtor’s business during insolvency proceedings, as well as the provision of equal treatment to creditors and granting them participation in reorganisation proceedings.
Companies that became insolvent are now being managed by creditor-appointed administrators.