dc.description.abstract | The wholesale and retail firms are very significant in the
country’s development process and, as such, the sector
was identified as a contributor to the achievement of
the Kenya Vision 2030 through job creation. That said,
the growth of the wholesale and retail sector has been
declining over the years, constraining its ability to
contribute to job creation as envisioned by the Kenya
Vision 2030. A key factor that influences the growth of the
sector is the regulatory framework that has implications
on growth of wholesale and retail firms.
In addition, wholesale and retail firms play a major role
in the economy due to their linkages with other sectors
by providing readily available markets for products and
services to consumers. The country has experienced an
increase in wholesale and retail firms, a majority of which
include supermarkets and hypermarkets, both local and
foreign owned which continue to dominate domestic
trade in Kenya. As a result, effective regulation of these
firms is critical to enhancing the sector’s contribution
to the improvement of livelihoods through job creation,
particularly in the post-COVID-19 period, which is a
major concern for the government in achieving the
aspirations of the Kenya Vision 2030.
The Constitution of Kenya 2010 devolved the function
of regulation and development of wholesale and retail
trade to the County governments. Specifically, the issues
of market development, trade licences, and fair-trade
practices were entirely devolved to County governments
through the Fourth Schedule of the Constitution. Since
the devolution of the wholesale and retail regulatory
function to County governments, new charges such
as county fees were introduced, and charges for the
existing ones were increased, thus constraining the
growth of firms.
Further, the National government agencies also regulate
the wholesale and retail firms where registration and
incorporation of businesses are done by business
registration service (BRS) domiciled at the Office of the
Attorney General. In addition, the taxation of businesses
is facilitated by the Kenya Revenue Authority (KRA)
on behalf of the National government. Other national
government agencies similarly regulate the sector
depending on the type of business activity the firm is
engaged in. As such, it is evident that the wholesale and
retail firms are regulated by the two levels of government | en |