Amanze Chinonye
Kenya’s private sector faces higher costs and uncertainty from multiple taxes, regulatory hurdles and bribery, the World Bank said on Thursday, warning that the constraints are weighing on investment and business growth.
While Kenya’s corporate income tax rate is broadly in line with those of regional peers, companies face multiple national and county-level levies, frequent tax changes, cumbersome administration and concerns over unequal treatment, the World Bank said in an assessment of the country’s private-sector environment.
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About one-third of companies surveyed reported being asked to pay a bribe, highlighting corruption as a significant obstacle to doing business.
The World Bank’s Enterprise Survey measures firms’ experiences with requests for unofficial payments in dealings involving public services, permits, licences and taxes.
Licensing and permits were identified as a major constraint by 25.3% of companies surveyed in the World Bank’s 2025 Enterprise Survey, which examines the experiences of formal private-sector firms with regulation, infrastructure, access to finance and corruption.
The World Bank also highlighted unreliable and costly utilities as another constraint on businesses. Frequent power outages and inadequate water supply add to operating costs and can limit productivity, the assessment said.
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The findings come as Kenya seeks to attract private investment and create jobs while managing fiscal pressures. The World Bank said a more predictable tax system, reduced regulatory burdens and stronger governance would help create conditions for businesses to invest and expand.
The assessment points to a broader business-environment challenge rather than the headline corporate tax rate alone, with the cumulative burden of taxes and levies, regulatory compliance, corruption, infrastructure weaknesses and financing constraints affecting the cost and predictability of operating in Kenya.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
