Kenya’s manufacturing sector has called for urgent regulatory reforms to address rising compliance costs and the duplication of levies, which continue to erode the competitiveness of local industries.
KAM Chief Executive Tobias Alando has said the regulatory audit reveals duplication of fees, levies, and compliance requirements across national and county governments, which has become a major structural constraint on industrial growth.
“In some manufacturing sectors, businesses are required to obtain more than 50 licences, permits, and fees from different regulatory agencies at both national and county levels,” said Alando.
The report shows that companies in the pharmaceutical and medical equipment sector require up to 57 licences, those in the chemical and allied sector need 53, while firms in the food and beverage industry require 51.
Alando said the growing regulatory burden diverts resources away from investment and innovation, weakening Kenya’s competitiveness in both regional and global markets.
He warned that unless regulatory processes are streamlined, Kenya risks losing ground in regional trade arrangements such as the African Continental Free Trade Area (AfCFTA), the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), as well as preferential trade agreements including the EU–Kenya Economic Partnership Agreement and the African Growth and Opportunity Act (AGOA).
Among its recommendations, the report calls for harmonisation of regulatory mandates between national and county governments, greater fiscal predictability, and the adoption of county tariff pricing policies that align fees and levies with the actual cost of services provided.
It also urges stronger enforcement against illicit trade and the development of a national strategy to support Kenyan manufacturers in taking advantage of opportunities under AfCFTA.
Industry leaders say implementing the proposed reforms would significantly lower the cost of doing business, improve regulatory predictability and strengthen the competitiveness of Kenya’s manufacturing sector.
The report was developed with support from TradeMark Africa through funding from the British High Commission in Kenya.
The concerns were raised during the launch of the Regulatory Audit Report for the Manufacturing Sector by the Kenya Association of Manufacturers (KAM), which showed a complex and costly regulations that manufacturers must navigate.
The study reveals that manufacturers face a complex regulatory environment characterized by multiple licensing requirements, overlapping mandates among regulatory agencies, and rising compliance costs imposed at both national and county levels.
