Kenyan manufacturers urge the government to expedite reforms to address rising regulatory costs and double taxation—issues that are undermining the competitiveness of local industries. For years, high electricity and raw material costs have driven up production expenses, and these factors now further burden businesses. Combined with unpredictable regulations, they continue to harm the investment climate. This situation was revealed in a manufacturing regulatory audit report released yesterday by the Kenya Association of Manufacturers (KAM). The report highlights manufacturers operating in a complex regulatory environment, characterized by multiple licensing requirements, overlapping responsibilities among regulators, and escalating compliance costs at both national and county levels. The study identifies five core regulatory challenges that weaken the competitiveness and sustainability of Kenya's manufacturing sector, specifically: high and unpredictable taxation, overlapping regulatory requirements (where multiple state-level agencies often perform identical oversight functions, creating a costly and time-consuming compliance landscape), and inconsistent county-level regulations. Since the introduction of the tariff pricing policy requirement in 2012, no county has implemented it, leading to arbitrary and continuously increasing fees and charges without clear justification.
