Businesses to get automatic approval after 28 days under new county licensing rules
The reforms, championed by the Investment, Trade and Industry ministry, are intended to improve Kenya’s business climate and remove unnecessary obstacles.
Businesses experiencing delays in obtaining licences from county governments for more than 28 days will now be automatically allowed to operate under the proposed new regulations designed to simplify county trade procedures.
The County Licensing (Uniform Procedures) regulations of 2025 also aim to merge several county permits into one licence, making it easier for traders to comply with requirements.
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The reforms, championed by the Investment, Trade and Industry ministry, are intended to improve Kenya’s business climate and remove unnecessary obstacles.
Investment Promotion PS Abubakar Hassan Abubakar told the National Assembly Committee on Implementation that the ministry is finalising rules that will harmonise county licensing systems, making them more uniform, transparent, and efficient.
He highlighted that the current licensing framework is slow, inconsistent, and repetitive, forcing businesses to spend extended periods pursuing approvals.
“Some companies take up to two years to get a single licence. These licences are not uniform and, in many cases, they are not automatic,” Abubakar said.
To resolve these challenges, the ministry has proposed a set of five strategic measures, placing licensing reform at the centre.
These include consolidating multiple permits into a single licence, standardising application procedures, and introducing digital approval systems to shorten waiting periods.
“We are putting in place a system where, if you do not receive a response from the county government within 28 days, your licence is automatically approved. No business should be kept waiting indefinitely,” Abubakar explained.
The PS added that the Council of Governors has been directed to coordinate licensing between counties to facilitate smoother movement of goods and services.
Presently, traders transporting products across counties must obtain clearance at every stop, a process considered both costly and inefficient.
“The goal of my department is to increase the level of private investment in the Kenyan economy. For that to happen, both the national and county business environments must be competitive and predictable,” he said.
In addition to licensing reforms, the ministry is also developing county-specific industrial policies, investment facilitation units, and a County Competitiveness Index to assess the economic performance of each county.
These initiatives are intended to guide targeted development efforts, encourage industrial growth, and attract more investment promotion events across the country.
However, the discussions also revealed concerns over national versus county powers in regulating business licences.
Legislators, including Kathiani MP Robert Mbui, raised questions about whether the proposed rules could infringe on county autonomy.
Committee chairperson Samuel Chepkonga cautioned that local governments should still be able to make licensing decisions at the county level.
“If every county makes its own licensing rules, businesses will face 47 different regimes, which is not sustainable for a unified market,” Abubakar noted.
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