Kenya is stepping up efforts to win a larger share of global investment by cutting business costs, easing regulations and making government processes more predictable, President William Ruto has said.
Ruto said his administration had introduced more than 50 measures over the past three years to improve the business environment after consultations with business associations, foreign chambers and investors.
Speaking at the AmCham Business Summit at the Windsor Hotel in Nairobi on Wednesday, the President said the changes covered taxation, access to finance, business regulation, county licensing and special economic zones.
He said the aim was to make it easier and faster for investors to set up and operate businesses while giving them greater certainty when dealing with government.
Ruto pointed to several commitments he made at the 2023 summit which he said had since been implemented. These include removing VAT on exported services, allowing verified tax refunds to be paid within six months or offset against future tax liabilities, and ending premature taxation of shares allocated to startup employees.
The government also scrapped a 30% local equity requirement that Ruto said had discouraged major technology companies from investing in the country.
“When I addressed this summit in 2023, I made specific commitments. I said we would remove VAT on exported services. We did. I said verified tax refunds would be paid within six months, or become available for offset. That is now the law. I said we would end the premature taxation of shares allocated to startup employees; we did, and I said we would remove the 30% local equity requirement, deterring major technology firms from investing in Kenya. We removed it.”
Ruto said the government had also reduced local ownership requirements for pension scheme administrators and brought the corporate income tax rate for foreign companies with permanent establishments in line with that of domestic companies at 30%.
President William Ruto arrives at the AmCham Business Summit 2026 at the Windsor Golf Hotel and Country Club in Nairobi on September 9, 2026. PHOTO/PCS
Other measures include incentives targeting special economic zones, pharmaceutical manufacturing, public-private partnerships, electric mobility and agricultural value addition.
The President said county-level licensing was also being addressed, with governors urged to speed up implementation of the County Licensing Uniform Procedures Act 2024.
He said businesses operating in different parts of the country should not be forced to navigate different licensing systems or face unclear and repeated charges whenever they cross county borders.
“They should also harmonise procedures, digitise applications, and eliminate opaque or duplicate charges. An investor should not encounter a different country every time a truck crosses a county border.”
The push comes as countries compete for a limited pool of international capital. UN Trade and Development reported that global foreign direct investment increased by 6% to Sh206.4 trillion in 2025, but said the recovery remained fragile and concentrated, with more than 80% of global FDI going to the world's 20 largest host economies.
Kenya is seeking to improve its position by addressing issues that can affect investment decisions, including regulatory certainty and the time and cost involved in meeting government requirements.
The US government's investment climate assessment has previously pointed to bureaucratic processes and delays in obtaining business licences as challenges for companies operating in Kenya, while recognising the country's telecommunications infrastructure, financial sector and role as a regional logistics hub.
The World Bank has also identified regulatory barriers and weak competition as constraints on Kenya's private sector. It estimates that reforms aimed at increasing competition could raise annual GDP growth by up to 1.35 percentage points and support the equivalent of up to 400,000 additional jobs each year at average wage levels.
Ruto said the government was also pursuing legislation that would require public agencies to justify, simplify or remove compliance requirements. Further reforms are planned to make procedures in the food and energy sectors easier to navigate.
The President said the Investment and Export Promotion Bill 2026 would provide additional protection to investors by guarding against unlawful expropriation and protecting the repatriation of capital, profits and dividends.
The Bill also proposes specialised mechanisms for handling investment disputes, while the government is digitising the investment one-stop centre to allow investors to submit applications, monitor approvals and interact with government agencies through one platform.
Ruto said predictability would remain central to the government's approach as it seeks to attract more private capital.
“Government must become easier to communicate, faster to respond and more accountable for results. Ultimately, predictability is the product Kenya wants to be known for. Capital cannot be made because the president says so. It moves when rules are clear, licences are verified, refunds are paid, contracts are respected, and agreed terms do not change halfway through investment.”
The reforms are being pursued alongside wider fiscal and economic pressures facing the country.
In June 2026, the World Bank approved a Sh96.75 billion development policy operation for Kenya, saying reforms to improve governance and public financial management could help create the regulatory certainty needed to generate jobs and draw private investment.
Ruto said the government's broader goal was to create an environment where the state provides reliable rules and infrastructure while businesses use those foundations to expand, create jobs and increase exports.