The new Cabinet Secretary for Investment, Trade and Industry, Lee Kinyanjui, has expressed his commitment to addressing the recent worrying trend of companies shutting down or exiting the Kenyan market.
The former Nakuru governor officially assumed office from his predecessor, Salim Mvurya, on Monday, January 20, where he outlined some of his plans for the ministry.
In his maiden speech, Kinyanjui reiterated his commitment to continuing Mvurya's previous projects while acknowledging the challenges posed by the recent closures of various industries.
Kinyanjui stated that the government, through the Ministry of Investment, Trade and Industry, was determined to leverage technology to prevent further closures.
"Top on the new CS's agenda is also efforts to institute internal reforms to ensure that companies & industries in Kenya adapt to new technological challenges to avoid closure," a statement from the ministry read.
"There are also plans to create a predictable taxation regime to ensure that goods made in Kenya conform to the required standards for safety."
The Ministry's statement came amid a recent wave of dissolutions of companies across different industries for unspecified reasons.
A recent Gazette notice issued earlier in January placed at least 116 businesses on notice over potential dissolution. The government, through the Registrar of Companies, Joyce Koech, revealed that 202 companies had already been dissolved.
Industries in Kenya are struggling to remain afloat due to geopolitical tensions, rising energy costs, and inflation, which have made the market increasingly unpredictable.
According to the Q3 financial report, the Central Bank of Kenya revealed that only 34 per cent of CEOs believed their companies experienced growth, compared to 19 per cent who reported a decline.
One of the more high-profile cases involved the exit of a renowned motor company, CMC Motors, which withdrew not only from Kenya but also from the East African market after four decades of operation.
Additionally, the new Cabinet Secretary has committed to advancing programmes and activities initiated by his predecessor, including a strategy for the African Continental Free Trade Area (AfCFTA). This is particularly significant given Kenya's status as one of the largest producers and exporters of coffee and tea.
The government, through the Ministry of Trade and Industry, is also prioritising Kenya's new-found relationship with the UAE.
