SPEECH BY HIS EXCELLENCY HON. UHURU KENYATTA, C.G.H.,PRESIDENT AND COMMANDER IN CHIEF OF THE DEFENCE FORCESOF THE REPUBLIC OF KENYA LAUNCH OF THE ONE-DAYREGISTRATION OF COMPANIES AT ATTORNEY GENERAL’S OFFICE,NAIROBI, 27TH JUNE, 2014

Ladies and Gentlemen,

It is a pleasure for me to join you to witness the launch of the one-dayregistration of companies. This launch is, indeed, a significant milestonein the automation and digitization of government services, to which myGovernment is fully committed.

Ladies and Gentlemen,

Kenyans have for too long a time demanded that their governments servethem efficiently. This is their constitutional right and they have goodreasons for doing so.

We cannot grow our economy as rapidly as we have set for ourselves. Andwe will not create the jobs for our young people, if delays in serviceprovision by government departments impede the efforts of innovativeKenyans. This is why my Government has positioned the upgrading of thecompanies registry as one of the flagship reforms.Ladies and Gentlemen,

As you are aware, Kenya’s ranking in the Ease of Doing Business Index inthe recent past has not been encouraging to many of us that areconcerned about the social and economic development wellbeing of ourpeople. While these indexes are not perfect, they challenge to us to dobetter. We have responded to this challenge and in this respect havedeveloped a comprehensive Doing Business Improvement Programme.

Ladies and Gentlemen,Registration of Companies and business names is one component of thisprogramme. Moving forward, the registry has introduced name searchesusing the USSD gateway. The service can be accessed directly from yourmobile phone: all you now have to do is call *271#, and the payment willbe done through M-Pesa.

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I am informed the facility allows Kenyans to search out and reserve namesfor their businesses and companies from the comfort of their homes andoffices. The service also improves the transparency of our enterprises,since it allows access to the full list of directors who serve any companyregistered in Kenya.

The second major initiative, and one that will improve significantlytransparency, is the opening of all registry services to mobile money. Youcan now pay for any service offered by the registry via M-Pesa.

From name searches to registrations of limited companies and toregistration of debentures, every service offered by the registry can nowbe paid for in this convenient and clear format. I expect that otherservices in the Office of the Attorney General will follow suit as soon as ispractical.

Ladies and Gentlemen,

The gains from this reform cannot be overemphasized. The clearerrecords this reform will enable, and the speed with which payments forcompany registration can be processed, will sharply reduce delay inservice provision as well as reduced opportunities for corruption.

Of course, the delays and problems of the past were not simply a matter oftechnology. Processes matter too. And so we have agreed to streamlinethem. The payment of stamp duty and registration fees will now bereceived as a one-time payment – this means the Registrar of Companiescan simultaneously stamp and register the documents.

Again, let me emphasize, the benefits of this reform are indisputable. Thecollection of Stamp duty has traditionally been a cause of long delay in theregistration process. Today’s simple process change will cut the timetaken to pay stamp duty and register a company from 14 days to 24hours. And, although this registration model is being piloted at theCompanies Registry, it will soon be rolled out to all Huduma Centers.

Now, those are the main innovations of immediate interest to theexecutive arm of government. Let me say a little about what other armsof government are doing to meet the reasonable demand by Kenyans forbetter public services.

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As I have mentioned sometime back, it long ago became clear to us thatthe legal framework governing our enterprises needs reform. We havebeen working on it and I am happy to inform you that now two bills – theCompanies Bill and the Insolvency Bill due to be tabled in beforeParliament.

Our aim in passing these Bills is to introduce and entrench internationalbest practice in corporate law and management. The first, the CompaniesBill 2014 will streamline regulation and ownership of businesses in Kenya.It seeks also to amend the Companies Act to align it with emerging trendsin the formation and operation of companies, and to simplify theirformation and operation.

Furthermore, the Bill marks a real shift in the culture of government, sinceit wholeheartedly embraces the gains that Information and CommunicationTechnology (ICT) offers. It provides, for example, a pathway for onlineregistration services.

In this regard, I am informed that work for the provision of an online-companies registration service is already underway. Its full operationawaits the launch of the Government Payment Gateway to be rolled out inJuly this year.

I trust that both these two projects will be hastened, not only for theirintrinsic value, but also because, once complete, they will allow us todecentralize registration services to the counties within the framework ofthe Huduma centres.

Ladies and Gentlemen,

Let me close by reiterating the Motto: “Kenya is a Working Nation”. Ourpeople know it very well it is our energy and enterprise, not our resources,which have brought us this far. We in the Government must match thespeed, innovation and diligence of Kenyans. We have no choice. This is why, as a government, we have prioritizedreform of registration of companies. The Companies Registry is the nervecentre of all business in the country, and as such I am happy the AttorneyGeneral’s Office has lived to the challenge.

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This is why I am very pleased to join you in launching these improvements,which, when fully operational, will transform the work of both governmentand ordinary Kenyans. And more encouraging it will bring the Uwazi – theopenness and transparency- that we promised to our people.

Asanteni sana, and God bless you all.

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