In a very daring step that is likely to change the city’s small business sector dramatically, Nairobi Governor Johnson Sakaja has issued a two-year blanket business permit waiver for capstone beneficiaries of the Nyota Fund, which has caught the attention of the entire economic sector of the urban areas in Kenya and is believed to change the concept of small business in the regions just before the 2027 general elections.
The decision, which was made known on Friday during a very public and important briefing at City Hall, states that the Nyota Fund winners operating in the micro and informal sectors of Nairobi will not be paying for business permits for the next two years, a plan aimed at helping very young and small businesses that are already facing the challenges of high costs of compliance and taxation activity to pump life into the low-income neighborhoods.
Governor Sakaja referred to the business permit waiver as a tactical maneuver that will unearth the business potential, formalize the market a lot more than that, and increase the revenue streams into the city’s economy.
He said, “This waiver has been made with the intention of empowering the grassroots entrepreneurs, cutting down the business’ cost, and encouraging the formal participation of the micro-mapping in Nairobi’s economic ecosystem,” thereby highlighting Nairobi’s position as the engine of commerce in Kenya.
Proposed by the new policy, the beneficiaries of the Nyota Fund who meet the criteria will not have to pay the annual business permit renewal fees for the next two years, which has been a major hindrance to many small-scale traders in accessing the formal markets.
The officials from the city confirmed that the process would start at once and the necessary actions have been taken to ensure the licensing department of the county is complying with the rollout plan.
The business advocacy groups have given high praise to the initiative, calling it a game-changer for the informal economy of Nairobi that comprises 60 percent of the total city workforce and is also a major source of local commerce.
On the other hand, the critics have argued that the waiver might have an adverse effect on the revenue of the county during the already tough financial situation and pointed out the need for the governor to explain the city’s plan to maintain financial responsibility while encouraging economic growth.
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