Formulate policies that promote ease of doing business for women
Catherine Masinde (right), the World Bank Group's practice manager for Eastern and Horn of Africa, gives Adan Mohamed (centre), the Cabinet Secretary Ministry of Industry, Trade and Cooperatives, a copy of the results of the "Doing Business in Kenya 2016" report as Carole Kariuki (left), the chief executive officer of the Kenya Private Sector Alliance, looks on at Safari Park Hotel and Casino in Nairobi on September 13, 2016. PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
The World Bank recently placed Kenya at position 92 out of 190 countries on the Ease of Doing Business index globally.
The public awareness that has been created by this ranking has led to growing understanding that addressing these constraints to women’s economic empowerment is fundamental to lasting, inclusive, and sustainable economic growth, poverty reduction, food security, and achievement of gender equity and equality.
For us to handle our most pressing economic challenges such as youth unemployment and women empowerment and attract more women into business and entrepreneurship, there is a need for policy makers to lessen the travails of women-led enterprises that have slowed the momentum needed to grow the economy into a double-digit middle-income one, as envisioned in the economic pillar of the Vision 2030 initiative.
Although Kenya has made significant progress in empowering women, countries such as Rwanda, South Africa, Tanzania, and Uganda are far ahead in strengthening their representation and participation in governance through constitutional gender quotas.
Even though we have made tremendous progress in empowering women since the promulgation of the Constitution in August 2010, there is still little to celebrate with regard to opening up business space for greater opportunities and participation for women in the economy.
However, even with limited business space and multiple hurdles to overcome in ease of doing business, statistics show that women remain a key pillar in our economic formation. Just recently, the Central Bank of Kenya released a report that showed that women account for 82 per cent of the total savings in the country. One would expect that since women are the greatest savers in the economy then the level of investments owned by women would be higher, but the reverse is true.
This inverse and unequal relationship between saving and investment according to gender continues to defy the Keynesian explanation that saving and investment are always equal. If you seek solutions to the challenges that women encounter in setting up and running their businesses, the response is that women must adapt to the male way of doing things. Really?
There is a need to formulate policies that reduce the economic gender gap and promote ease of doing business for women. The deep-rooted constraints that women face in taking advantage of entrepreneurial and market opportunities can no longer be treated as business as usual.
REWMARKABLE IMPROVEMENT
The World Bank recently placed Kenya at position 92 out of 190 countries on the Ease of Doing Business index globally. This was a remarkable improvement, climbing 21 positions in the ranking.
The same report ranked Kenya as the world’s third most reformed country, making it easier to start and operate small and medium-sized businesses. The World Bank attributed this key milestone to five reforms in the areas of starting a business, obtaining access to electricity, registering property, protecting minority investors, and resolving insolvency.
Sadly, the participation of women in economic activities in Kenya compared to the 10 most improved countries still remains the lowest. Which begs the question, does Kenya’s climbing up in the Ease of Doing Business ranking have real or perceived effects on women-led enterprises?
The index examines issues to do with starting a business, dealing with construction permits, access to electricity, registration of property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and insolvency.
These issues are the greatest impediment to the growth of women-led enterprises. The public awareness that has been created by this ranking has led to growing understanding that addressing these constraints to women’s economic empowerment is fundamental to lasting, inclusive, and sustainable economic growth, poverty reduction, food security, and achievement of gender equity and equality.
For us to handle our most pressing economic challenges such as youth unemployment and women empowerment and attract more women into business and entrepreneurship, there is a need for policymakers to lessen the travails of women-led enterprises that have slowed the momentum needed to grow the economy into a double-digit middle-income one, as envisioned in the economic pillar of the Vision 2030 initiative.
The writer consults on urban planning, environment, ethics, and governance.
Twitter: @IreneKeino
