Traders seek fair competition as State finalises views on new Bill

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Industry players argue business obstacles continue to squeeze compliant businesses and slow domestic trade growth. 

Some of the challenges include cross-border competition, multiple charges and inadequate market infrastructure. 

As public participation on the proposed Trade Bill closes this week, Kenya’s business community has urged the government to amend the draft law to address what it describes as growing unfair competition and entrenched structural barriers that continue to undermine local enterprises.

Industry players argue that unless the concerns are incorporated into the final legislation, the Bill risks falling short of its goal of strengthening domestic trade and protecting Kenyan businesses from distortions in the market.

Traders, industry representatives and government officials who spoke during the Nairobi forum said while the Bill is timely and necessary, it must respond to the realities facing businesses on the ground particularly cross-border competition, inter-county trade levies and weak market infrastructure.

The proposed law seeks to anchor Kenya’s 2017 National Trade Policy into legislation for the first time.

Deputy Director at the State Department for Trade Robert Okoth, said the country has operated without a legal framework to support and coordinate trade policy implementation at the national level.

“We developed a National Trade Policy in 2017 in collaboration with county governments and stakeholders. It has been widely accepted and is even being implemented by counties. Most county trade laws are anchored on that policy,” said Okoth.

“However, at the national level, we have lacked a law to anchor policy issues governing trade. This Bill seeks to provide that framework and ensure an enabling environment for both domestic and international trade.”

The draft Bill contains 46 clauses and proposes the establishment of institutional and coordination mechanisms between national and county governments. Okoth said the aim is to harmonise trade policies, reduce conflicts and ensure seamless trade across counties.

“Trade should not feel like crossing borders within our own country. We must harmonise inter-county trade and remove unnecessary encumbrances,” he said, adding that the national government’s role includes setting standards and policy direction while counties implement devolved functions. But traders say beyond policy alignment, enforcement and fair competition must be prioritised.

Executive Member of the Mutindwa Trade Association and a member of the Nairobi Markets Association Angeline Njuguna, said local traders are grappling with what they term unfair competition from foreign traders operating in Kenya.

“Some economic migrants come here and do not follow due process. Some are not taxpayers. When they operate next to you without paying taxes, they can sell at lower prices. We, who pay taxes, are forced to sell at higher prices,” she said.

She argued that this creates a pricing disadvantage for compliant Kenyan traders, pushing some out of business.

“We have raised this issue and we hope both the county and national governments will address it in the final Bill,” Njuguna noted, describing the proposed law as “healthy” if amended to incorporate stakeholder views.

Infrastructure gaps in markets also featured prominently in the discussions. Njuguna said many markets in Nairobi lack proper facilities and formal recognition, limiting traders’ confidence to invest.

“Some areas are called markets but are not gazetted or fully developed. Traders there are not confident enough to invest because they are unsure of tomorrow. If these markets are formally recognised and developed, traders can invest, create jobs and grow revenue for both county and national governments,” she said.

David Muthoka, Regional Industrial Development Officer in charge of Nairobi, Kiambu and Kajiado, said the Bill comes at a critical time when inter-county trade barriers are becoming increasingly disruptive.

“No county is independent. There is continuous movement of goods from one county to another. But we have seen policies and levies introduced at county level that hamper free movement of goods and services,” he said.

He cited the proliferation of county charges along major transport corridors as a key concern for traders.