Policy Brief No. 96 of 2019-2020 on Improving Productivity of Informal Manufacturing Enterprises through Better Business Environment

Abstract

A favourable business environment makes it easy for both domestic enterprises and multinationals to enter and exit from the markets, provides opportunities for low cost of doing business, increases productivity and consequently job creation. Concerted efforts by the Government to improve the business environment in Kenya has seen ease of doing business ranking improve from position 129 in 2014 down to position 56 in 2019 with a doing business score of 73 (Doing Business Report 2020). This improvement can be attributed to improvements in dealing with construction permits, accessing electricity, accessing credit, protecting minority investors, ease of paying taxes and resolving insolvencies. Nevertheless, the country still performed poorly in registering property (scored 53.8) and enforcing contracts (scored 58.3)...