High cost of land worries Raila
By SAMWEL KUMBA

The high cost of land is inhibitive for investors in the country, Prime Minister Raila Odinga has said.

The PM, who on Tuesday led a round-table discussion between the private sector and the Government, said this could jeopardise Kenya’s plans.

“Can we succeed if an investor has to contend with an acre of land costing a quarter billion shillings? The investor, who could very well be a Kenyan, might decide to venture into one of our neighbouring countries,” said Mr Odinga.

During the meeting, the private sector presented a National Business Agenda (NBA) in which it highlighted 11 areas to be fixed to make businesses thrive, expand and maintain their competitiveness in the global market.

The areas included physical infrastructure, crime and insecurity, business regulation, labour market regulation, external trade and market access, tax regime and transformation of small enterprises.

Public service

The others are transformation of agriculture, protection of intellectual property rights, unleashing information and communication technology potential and building an efficient public service.

On the issue of land, Mr Odinga, said that, for instance, the piece of land between the Grand Regency Hotel and the General Post Office in Nairobi, had been sold for Sh1.4 billion.

He wondered what investment could give a rate of return high enough to recover the cost of the land.

The PM attributed the high costs to speculators who hold onto their plots, anticipating making a kill.

Deputy Prime Minister and minister for Trade Uhuru Kenyatta said the Government is pushing for a reduction of business subsidiaries in the local and international market to enhance the market for agricultural products.

Mr Steve Smith, the chairman of the Kenya Private Sector Alliance said Kenya is currently uncompetitive as an investment destination due to the high cost of doing business.

And the Kenya Association of Manufacturers chief executive Betty Maina identified energy as one of the greatest bottlenecks affecting investors.

Mr Odinga has promised to address a press conference on the agreements reached.

Courtesy of:http://www.nation.co.ke/News