Wednesday, August 24, 2011


Minister scraps council inspections


Updated 4 hr(s) 55 min(s) ago
By Macharia Kamau

Local Government Ministry has issued a directive barring 175 local authorities from making ‘impromptu’ inspections on businesses.
Local Government Minister Musalia Mudavadi said unplanned inspections had promoted corruption.
“All local authorities should streamline their inspections process and the practice of ad hoc inspections ceases forthwith,” he said.
 “The reforms should involve a harmonised inspections system which will enhance transparency.”
This means businesses would now be notified in advance of upcoming inspection visits.
“There is rampant, unfair and non-transparent inspection practice that is a huge burden to business.”
The minister spoke during the launch of a survey to be carried out across 13 local authorities.
Their competitiveness will be gauged against 183 economies from across the world. Preliminary findings of the survey will be issued in January 2012 followed by a comprehensive report in June.
The Doing Business Survey was first carried out in 2009 in 11 local authorities. Narok, Malaba and Thika emerged as the best three areas to set up shop for investors due to simplified licensing procedures.
David Brigdman, the regional manager Investment Climate Advisory Services of the World Bank Group said if other towns took up the reforms and positioned themselves as the three localities, Kenya would rank higher up in the World Bank’s global doing business report.
“If other areas took up the model the three have in place, Kenya’s performance would be 17 places higher than it is at the moment.
It would be better to do business in Kenya than Italy from an investor’s perspective,” he said. In the DoingBusiness Report 2011, Kenya ranks 98, having slid down four slots from 94 in the 2010 report.
Brigdman noted that Kenya has not necessarily become a hostile investment destination, instead it has been focusing on other reforms while improving the investment climate may have taken a back seat.

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