As Kenya enters the final stretch of the Kenya Kwanza administration ahead of the 2027 General Election, the government is turning its attention to a long-standing challenge that has frustrated investors, entrepreneurs, and multinational companies alike: the high cost and complexity of doing business.  

According to David Ndii, Chair of the Council of Economic Advisors to President William Ruto, the government is developing the Kenya Investment and International Business Facilitation Service Bill, 2026, which he describes as the administration’s final major business policy reform before the next election cycle. The proposed legislation was announced at the NCBA’s 11th Economic Forum. The Bill seeks to address a key challenge posed by Kenya’s fragmented regulatory environment, which investors must navigate when starting, operating, and expanding businesses.  

At the heart of the reform is a recognition that attracting investment is no longer solely about tax incentives or economic growth projections. It is equally about how easily businesses can obtain approvals, comply with regulations, access government services, and resolve regulatory disputes. The Bill therefore proposes a new institutional framework to make Kenya a more competitive investment destination while subjecting regulators to greater scrutiny and accountability.  

Creating a Single Investment Facilitation Framework  

A central proposal in the Bill is to establish the Kenya Investment and International Business Facilitation Service, a dedicated institution to coordinate interactions between investors and government agencies through a single facilitation framework.  

Rather than requiring investors to navigate multiple ministries, regulators, county governments and state agencies separately, the proposed framework would provide a unified process for coordinating investment approvals and services. Importantly, the reform does not seek to merge existing agencies or eliminate their mandates. Instead, it aims to integrate their processes so that businesses experience government as a single, coordinated system rather than a collection of disconnected institutions.  

The Service would report to a high-level National Investment and International Business Facilitation Council, enabling it to escalate investment-related bottlenecks to senior policymakers for resolution. This is critical because many investment challenges stem not from a lack of regulation but from conflicting mandates, prolonged decision-making, and poor coordination between institutions.  

By establishing a structured mechanism to resolve investor challenges, the government hopes to reduce bureaucratic delays, improve service delivery, accelerate project implementation and enhance Kenya’s attractiveness as a destination for domestic and foreign investment. At a time when countries across Africa are competing for capital, technology transfers, manufacturing investments and regional headquarters, a more efficient investment facilitation system could give Kenya a significant competitive advantage.  

Regulatory Oversight: The Reform with the Biggest Impact on Business  

The Bill’s most transformative element may be the creation of a Regulatory Oversight Service, a body responsible for reviewing how regulations, licences, fees and levies are introduced and administered across government.  

Ministries, departments, agencies and regulators frequently introduce compliance requirements and revenue-generating charges without fully assessing their impact on businesses. Over time, these requirements accumulate, raising operational costs, particularly for small and medium-sized enterprises that have fewer resources to absorb compliance costs.  

The proposed Regulatory Oversight Service would therefore play several critical roles:  

• Reviewing existing licences, permits, levies and regulatory requirements to eliminate duplication and unnecessary compliance burdens. 

• Examining proposed regulations before adoption to ensure they are justified, proportionate and economically sound. 

• Conducting Regulatory Impact Assessments to determine the likely effects of new regulations on businesses, investment and economic growth. 

• Receiving and investigating complaints from businesses about excessive compliance costs and regulatory obstacles. 

• Acting as a business ombudsman and providing a formal channel for investors to seek redress when faced with unfair or burdensome regulatory practices.  

For businesses, these measures could introduce a new level of regulatory accountability and predictability. More importantly, they could shift the focus of regulation away from revenue generation and administrative processes toward supporting economic growth, competitiveness, and private-sector development.  

What the Reforms Could Mean for Kenya’s Economy  

At its core, the legislation seeks to address a key factor influencing investment decisions: how easily businesses can establish, operate, and expand within a particular market.  

A streamlined investment environment could reduce transaction costs, shorten project implementation timelines and improve certainty for investors considering Kenya as a destination for capital deployment. Reduced compliance burdens would particularly benefit sectors that interact extensively with regulators, including manufacturing, energy, infrastructure, logistics, financial services, healthcare and technology.  

The reforms could also have broader macroeconomic effects. Increased investor confidence may boost domestic investment and attract additional foreign direct investment. This would support business expansion, industrial growth and job creation, while strengthening Kenya’s position as a regional commercial hub. Furthermore, by encouraging economic activity rather than relying on multiple regulatory charges and levies, the reforms could support more sustainable long-term revenue growth for the government.  

However, the Bill’s effectiveness will ultimately depend on its implementation. The proposed institutions will need sufficient authority to challenge unnecessary regulations, while government agencies will need to adopt a more coordinated approach to service delivery. Achieving these objectives may require significant political commitment, particularly where reforms affect agencies that rely heavily on licences and fees for revenue.  

The Road Ahead  

The incoming Kenya Investment and International Business Facilitation Service Bill, 2026 reflects a growing recognition that sustainable economic growth depends not only on sound macroeconomic policies but also on the quality of the business environment. By establishing a single investment facilitation framework and a robust regulatory oversight mechanism, the Bill seeks to reduce regulatory friction, improve accountability, and create conditions that encourage investment and enterprise.  

As the government positions the legislation as its final major business-environment reform before the 2027 elections, attention will now shift to drafting, stakeholder consultation and the legislative process. The extent to which the Bill delivers meaningful change will depend on whether government institutions implement its provisions with sufficient authority and consistency. If successful, the reform could help lay the foundations for a more competitive, investment-friendly economy that supports business growth, job creation and long-term economic transformation.