Kenya’s one-stop clearance shops for clearing foreign and local investors at special economic zones (SEZs) has suffered a hitch. This is after Parliament shot down the regulations.
Parliament said that the Ministry of Trade did not show proof that it carried out public participation on the regulations that provided for the establishment of the one-stop shops under the Special Economic Zones (Amendment) Regulations 2020.
The shops which aims to woo investors have since March been giving business clearances, issuing work permits and visa for foreigners and handled tax matters on behalf of the Kenya Revenue Authority (KRA).
Reduced time taken to clear investors
The hitch has resulted in reduced time taken to clear investors at the one-stop shops who were before March forced to visit several offices including the KRA, the National Construction Authority and the National Environmental Management Authority for approvals and registrations. Trade and Enterprise Development Betty Maina gazetted the regulations in March pending Parliamentary debate and approval.
“The committee resolved to annul the regulations for failing to demonstrate that sufficient public participation was undertaken contrary to Articles 10 and 118 of the Constitution,” the committee chaired by Tiaty MP William Kamket says in its report.
The shops have representatives from all State agencies involved in the clearance, registration of businesses and the KRA.
