Kenya – A study on the potential of Northern Corridor counties’ laws on transport and movement of cargo along the Northern Corridor

TMEA intends to develop a policy that will ensure that the cost of doing business is reduced from the current 40% to between 20- 30%. With the operation of the new system of governance in Kenya if the county laws and more especially county finance laws, if left unregulated, have the potential of preventing this goal from being realized. So far, the County laws enacted have introduced levies, charges, licences and penalties whose effect is to increase the cost of doing business. The objective of this consultancy was therefore to review the county laws and finance bills in particular to ensure that County laws allow the raising of revenue without escalating the cost of economic activity but instead promote efficiency.

1. Identified County Bills, with special interest in Northern Corridor counties (Mombasa, Kilifi, Kwale, Taita/Taveta, Makueni, Kitui, Machakos, Nairobi, Nakuru, Kericho, Uasin Gishu Kakamega, Busia and Bungoma), and classified them with regard to the type of taxes, levies, charges they are imposing on transport-related activities;
2. Analysed county funding sources in relation to county development programmes and expenditures;
3. Assessed and quantified the potential economic impact of county taxes, levies, charges etc. on both county, national and east African regional economic development particularly the freedom and cost of transport, productivity and competitiveness;
4. Proposed alternative county revenue-raising mechanisms for funding development programmes through expansion of their revenue base through improvements in their industry, education, services sectors etc. and which complement national growth objectives; and

Proposed improvements to transport policy at the national and devolved level that assist county growth and lessen reliance on the current revenue-raising mechanisms.