Ruto Vows Business Ease: Promises License Reduction for Startups
President William Ruto, in his State on National Security Report, announced plans to cut down the number of business licenses required to start a business to curb the high rate of unemployment.
In the annual report, Ruto revealed that this proposal will be among the plans to be implemented to boost job creation.
“The government will reduce the number of trade licenses required to start a business to grow the economy and lower the cost of doing business,” read part of the report.
Licenses in Kenya vary depending on the type of business. However, entrepreneurs need to obtain registration with the National Social Security Fund (NSSF), the National Hospital Insurance Fund (NHIF) and the Kenya Revenue Authority (KRA).
Other plans to reduce unemployment include a review of the redundancy article in the Employment Act 2007 and the utilization of Huduma Centres as a one-stop shop for obtaining relevant licenses.
The government will also develop guidelines on outsourcing of labor. Ruto also made public plans to ensure proper management of existing pro-youth empowerment programs.
According to the report, some of the measures the government has taken in the past to deal with unemployment included promoting graduate internship programs.
The government also enhanced the accessibility of affordable loans to the youth and the public through Ruto’s Hustler Fund, which was launched on November 30, 2022, and made available through mobile money service platforms.
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“We pledged to provide affordable and accessible credit and restore small business owners to good standing with credit rating agencies. A deliberate, targeted strategic financial inclusion fund, the Hustler Fund, which provides affordable credit and mobilizes savings for individuals and small businesses, was launched on November 30, 2022.
“The public response to the Hustler Fund has exceeded most initial projections and surprised even the most hardened skeptics,” Ruto stated on Thursday, November 9, during his State of the Nation Address.
According to the Head of State, by the end of October 2023, the Hustler Fund had disbursed Ksh36.6 billion, with Ksh2.3 billion in savings and 7.5 million repeat borrowers whose overall repayment rate is at an impressive 73 percent.
The government further prioritized sustained investment in education and technical training institutes to equip the youth with relevant skills for the job market.
Unemployment in the country has been on the rise, with more graduates leaving school with little to no hopes of getting jobs.
Earlier in the year, thousands of jobless Kenyans turned up for limited job slots more than five times, highlighting the silent epidemic.
Kenyans have also complained of the increased taxes forcing businesses to shut down, thus increasing the number of jobless Kenyans.
Ruto Vows Business Ease: Promises License Reduction for Startups
