Kenya's business costs have a regulatory problem that David Ndii wants addressed
Kenya’s cost of doing business is back in focus after David Ndii proposed a dedicated function to oversee regulatory requirements and the charges imposed on businesses. Speaking at the NCBA Economic Forum 2026, Ndii argued for a more coordinated approach to monitoring regulations, with attention to the fees, licences and administrative obligations that affect companies.
The proposal addresses a concern raised during the forum about the accumulation of charges across government agencies. Businesses must navigate different regulatory requirements while managing the financial and administrative costs associated with operating in Kenya.
Ndii calls for dedicated regulatory oversight
Ndii’s proposal centres on giving regulatory oversight a clearly defined institutional responsibility. A dedicated function would monitor the rules affecting businesses and examine how new requirements add to existing compliance obligations.
The issue is particularly relevant to smaller enterprises, which often have fewer resources to manage multiple licences, inspections and administrative processes. Companies operating across different sectors can also face requirements from several agencies, adding to the complexity of compliance.
Multiple charges add to business operating costs
Dr Bimal Kantaria raised concerns about the number of fees and levies affecting exporters. He referred to 47 charges and five additional levies, arguing that regulatory costs contribute to the difficulties facing Kenyan businesses competing in international markets.
His comments also connected regulatory costs with logistical challenges affecting horticultural exports. Charges imposed at different stages of production, transportation and export can add to the cost of getting Kenyan goods to overseas buyers.
For businesses operating on tight margins, these expenses affect pricing and competitiveness. Smaller exporters and producers must also account for the administrative time involved in meeting different requirements.
Regulatory fragmentation and competitiveness
The debate highlighted the relationship between regulation and the ability of businesses to invest and expand. Predictable rules allow companies to plan their operations, while multiple and fragmented requirements can complicate investment decisions.
Gossip’s closing remarks at the forum also emphasised lower business costs, accountability and economic diversification as priorities for Kenya’s private sector.
The implications for Kenyan businesses
A dedicated regulatory oversight function would place greater attention on the cumulative cost of government requirements. The broader policy question concerns how Kenya can maintain effective regulation while ensuring that businesses are not burdened by unnecessary administrative expenses.
For SMEs, exporters and larger companies, the cost of compliance forms part of the wider operating environment. Ndii’s proposal puts responsibility for examining that burden at the centre of the business policy discussion.
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