Kenya saw a rise in the World Bank’s ease of doing business 2016 index. The country climbed 21 places from 129 in 2015 to 108 in 2016.
The East African country has been battling an unfriendly regulatory framework and security concerns that investors have blamed for not doing business in the country.
Joshua Otiende, Research Analyst at ABC Capital told CNBC Africa that Kenya’s improvement was good for business especially for the much needed foreign inflows.
“Kenya’s rise is very important especially if we are considering issues like foreign direct investment into our country. Investors look at such indices if they are considering Kenya as an investment destination,” said Otiende.
He attributed the improved ranking to changes in the regulatory framework.
“We have seen a lot of regulatory and policy improvement, for example the reduction in the number of days it takes to get electricity connections in Kenya,” he added.
Some other reforms that Kenya enacted include dealing with construction permits, getting credit and starting a business.
He also called on the government to make further concessions if the country is to maintain the momentum.
“We have a lot to consider going forward like addressing the cost of energy; if this goes down we might” improve further.
Otiende also called on the country’s leadership to look at ways to cut the unnecessary bureaucratic delays.
“There is need to cut bureaucracies in processes for example the days it takes to register a company or properties,” he said.
The report also noted that Sub-Saharan Africa alone accounted for about 30 per cent of the regulatory reforms making it easier to do business in 2014/15.
The region was followed closely by Europe and Central Asia.
Uganda, Senegal and Benin are also part of the top ten improvers in the World Bank’s ease of doing business index.