Start your business in Narok instead of Nairobi

The Doing Business in Kenya 2010 report was launched yesterday, just on the heels of the annual Doing Business 2010 report. Globally, Kenya ranked 95 out of 183 economies. One of the reasons it takes longer to start a business in Kenyan localities is the many steps required: 3 more than the Sub-Saharan Africa regional average and 3 times as many as in Senegal.



Narok, Malaba and Thika lead the overall ranking on the four indicators measured in the report (starting a business, dealing with construction permits, registering property, and enforcing contracts). Isiolo, Nairobi and Kilifi lag behind other localities (see Table). Nairobi has the fastest time and lowest cost for starting a business, at 34 days and 36.5 percent of income per capita. But it lags behind other localities in the time needed to register property or enforce a contract through the courts.

The process to obtain construction-related permits and clearances is easiest in Narok, Nyeri and Malaba, but more cumbersome in Isiolo, Thika and Mombasa. Obtaining all permits to build a warehouse and hook it up to utilities takes less than 70 days in Narok, making it the 15th fastest location worldwide, the same as Denmark.

Registering property is fastest in Mombasa, where it takes 23 days (figure 1). In Isiolo, a special transfer tax levied by the County Council makes registering property almost as expensive as in the Syrian Arab Republic, the world’s most expensive place to register property.

Resolving a commercial dispute is speedy in Malaba, because the courts in Bungoma, where these are heard, are strict on adjournments. As a result, the 11 months needed to enforce a contract in Malaba are less than the OECD average (15.5 months).

Doing Business in Kenya 2010, the first subnational report on Kenya, suggests Kenya could improve its ranking by 17 positions simply by adopting best practices already in place in the 11 Kenyan localities covered in the report:

"If a hypothetical city, 'Kenyana', were to adopt the best practices already in place in Kenya, its ranking would improve in all four areas of regulation that are the focus of this study, putting 'Kenyana' in 78th place among the 183 economies measured in the global Doing Business report. That is 17 positions better than Kenya’s current global rank (represented by Nairobi)."

Here is the full 77-page report - which includes very valuable lists of all procedures to go through when starting a business in Kenya - plus the press release and a Powerpoint presentation. Just download, you won't regret it, it is good information.

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Obama gets interesting questions from Africa

As I announced before, World President Barack Obama invited Africans to send an SMS to him with questions and comments in advance of his visit to Africa.

Over the past week, the White House has been collecting questions, comments and words of welcome for World President Obama via SMS, Twitter, Facebook and from newspapers across Africa. The White House shared these responses with 3 journalists in Africa, Ms. Angela Quintal of the Independent Newspapers in South Africa, Mr. Mamadou Thior of Radio Television Senegal (RTS) and Mr. Peter Kimani of The Standard in Kenya. These journalists, in turn, picked a few of the questions for the President to answer. The White House will post a video and audio recording of those answers on Monday.

In the meantime, the White House has shared an interactive map which samples 43 of the more than 5,000 questions received.

There are pertinent questions about the ever-present vice of corruption:

"Goodmorning Mr.president,the former sec.of state Mr.Collin Powel once said that every Nigerian is corrupt.As a Nigerian I know he is 99% correct.what policies do you propose to inorder to deliver the largest African nation from this 'cancer'.may Allah protect and guide you."
Some of the questions address contemporary issues like the environment, such as this one from Swaziland:

Mr. President, thank you 4 ur commitment to improve lives of ordinary ppl. I work 4 an env regulating agency. There a companies who we find difficult to get to comply with env stds because they exploit our vulnerabilities (poverty, unemployment,etc). Politicians then find it hard to support compliance enforcement measures because of fear of making the economic situation worse. What is ur policy 4 US companies operating in developing countries and how it enforced?
And, of course, the most interesting question had to come from Kenya:

"Mr President, there is currently a lot of interesting and healthy debate in traditional and online media about appropriate development models for Africa. Three schools of thought are emerging: Jeffrey Sachs, Bill Easterly, and Dambisa Moyo. Which of these three does your administration feel most comfortable with when developing and designing US aid and development policies and strategies for Africa?"
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