In order to ensure that policy objectives are achieved in the most effective manner, policy makers consider the impact of proposed policies, bills and regulations.
In Kenya, the Statutory instruments Act, 2013, requires a regulatory impact statement for all statutory instruments (rules, orders, regulation, form, by law, resolution etc). This impact statement is required to specifically address the effects of these instruments on competition.
The Competition Authority of Kenya, therefore;
- Studies and investigates ,policies ,procedures, and programs of regulatory Authorities so as to access their effects on competition and Consumer welfare and publicize the results of such studies;
- Make representations to government , government commissions, regulatory authorities and other bodies on matters relating to competition and consumer welfare;
- Liase with regulatory bodies and other public bodies in matters relating to competition and consumer welfare; and
- Advise the government on matters relating to competition and consumer welfare.
Towards this, the Competition Authority of Kenya (CAK) launched the Kenya Competition Report. The report titled ‘Unlocking Growth Potential in Kenya: Dismantling Regulatory Obstacles to Competition’‘’ identified regulatory obstacles that may hinder effective competition and economic growth in Kenya, and to recommend pro-competitive reforms.
Key findings indicate that Kenya presents a relatively high level of government intervention in markets where the private sector is already present and non-justifiable regulatory requirements to enter into new markets and expand existing businesses. Regulatory design, informed by competition principles, will allow the government to progressively eliminate regulations that create barriers to competition and hinder economic growth. For example, the removal of restrictive product market regulations in Kenya’s service sectors such as professional services and telecommunications would result in an increase of GDP growth by at least 0.39 percentage points - equivalent to $218 million in the first year - compared to a situation with no reforms.