High Taxes and Levies Stifle Kenyan Businesses, Expert Warns

NAIROBI, Kenya (May 14, 2025) — Setting up a small factory in Kenya presents a significant financial hurdle for entrepreneurs, according to Dr. Erick Rutto, a business expert interviewed on SpiceFM. Rutto highlighted the numerous levies and high cost of credit as major obstacles. "Before you establish, there are 20 levies that you have to pay," he stated. He cited examples such as the 34,000 Kenyan shilling license from the Kenya Bureau of Standards and county government permits. These costs, combined with high interest rates (18-19%), make it challenging for Kenyan businesses to compete globally. Rutto advocates for tax reforms to create a more favorable business environment. The interview underscores the need for policy changes to support small businesses and foster economic growth. The Kenyan government is considering a unified business permit to reduce bureaucratic hurdles for businesses.