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County Trade Licensing Process

The document outlines the process of obtaining a trade license from county governments in Kenya, emphasizing the importance of compliance with both county-specific regulations and national laws. It details the legal framework established by the County Governments Act, 2012, and highlights the challenges businesses face due to varying licensing requirements across the 47 counties. Additionally, it discusses the principles of administrative law that govern trade licensing, including legality, rationality, procedural fairness, and proportionality, as well as the role of delegated legislation in shaping county bylaws on trade licensing.

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0% found this document useful (0 votes)
66 views17 pages

County Trade Licensing Process

The document outlines the process of obtaining a trade license from county governments in Kenya, emphasizing the importance of compliance with both county-specific regulations and national laws. It details the legal framework established by the County Governments Act, 2012, and highlights the challenges businesses face due to varying licensing requirements across the 47 counties. Additionally, it discusses the principles of administrative law that govern trade licensing, including legality, rationality, procedural fairness, and proportionality, as well as the role of delegated legislation in shaping county bylaws on trade licensing.

Uploaded by

p8999287
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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The Process of Obtaining a Trade License from a County

Government in Kenya: An Analysis of Administrative Law and


Delegated Legislation
The promulgation of the Constitution of Kenya in 2010 ushered in a system of
devolved governance, establishing 47 county governments with distinct functions and
powers. Among these devolved functions, as outlined in the Fourth Schedule of the
Constitution and further elaborated by the County Governments Act, 2012, is the
crucial mandate of regulating trade within their respective jurisdictions 1. This
regulatory authority is primarily exercised through the issuance of trade licenses,
which serve as essential permits authorizing businesses to operate legally within a
specific county 3. These licenses are not merely administrative formalities; they are
fundamental legal prerequisites for conducting any form of commercial activity at the
local level, ensuring that businesses comply with county-specific regulations and
contribute to the revenue streams of the devolved units 5. Operating without a valid
trade license constitutes a legal offense, potentially attracting penalties such as fines
and even imprisonment, thereby underscoring the critical importance of
understanding and adhering to the trade licensing requirements set forth by county
governments 5.

The devolved system of governance in Kenya has vested significant regulatory


authority in county governments concerning trade. This has resulted in a diverse and,
at times, intricate landscape of trade licensing requirements and procedures that can
vary considerably across the 47 counties. Consequently, businesses intending to
operate within a county must possess a clear and comprehensive understanding of
the specific regulations enacted by that particular county, in addition to being
cognizant of the overarching national legal principles that govern administrative
actions 3. Trade licenses, therefore, are not simply bureaucratic hurdles imposed by
local authorities; they represent fundamental legal obligations for any entity seeking
to conduct commercial activities within a county's geographical boundaries. Failure to
secure the necessary trade license can expose businesses to substantial legal risks
and financial penalties, including significant fines and potential terms of
imprisonment, highlighting the absolute necessity for businesses to navigate the
relevant county regulations effectively 4.

The Legal Framework Governing County Trade Licensing


The cornerstone of the legal framework that empowers county governments to
regulate trade and issue licenses is the County Governments Act, 2012. This Act
delineates the functions and powers of county governments, explicitly granting them
the authority to enact legislation necessary for the effective performance of their
devolved functions, which include trade development and regulation 1. Chapter Three
of the Act establishes the legislative authority of county assemblies, empowering
them to pass county laws, including acts and bylaws pertaining to trade licensing,
provided these laws are consistent with the Constitution and other national legislation
11
. Furthermore, Chapter Eight of the Act outlines the role of the County Executive
Committees (CECs) in formulating policies and implementing county laws related to
trade and licensing, often through dedicated departments such as the Directorate of
Trade Licensing 2.

While the County Governments Act provides the broad legal mandate for counties to
regulate trade and issue licenses, the specific details of these regulations, such as the
categories of licenses required, the procedures for application, the fees payable, and
the conditions attached to licenses, are largely determined at the level of individual
counties 13. Each of the 47 counties in Kenya often enacts its own specific Trade
Licensing Act or bylaws that tailor the licensing regime to the unique economic
activities and regulatory priorities within its jurisdiction 3. Examples of such
county-specific legislation include the Migori County Trade Licensing Act, 2016 3, the
Kericho County Trade Licensing Act, 2017 4, and the Nairobi City County Trade
Licensing Act, 2019 5. This decentralized approach to trade licensing, while allowing
counties to address their specific needs, has resulted in a fragmented regulatory
landscape across Kenya 15.

The diverse and often inconsistent nature of trade licensing regulations at the county
level presents considerable challenges for businesses, particularly those that operate
across multiple counties. The lack of a standardized, uniform approach necessitates
that businesses research and comply with the specific licensing laws of each county
in which they have a presence, leading to increased compliance costs, administrative
complexities, and potential confusion regarding the applicable requirements 17.
Recognizing this challenge, the County Licensing (Uniform Procedures) Bill, 2022 14,
was proposed with the aim of establishing a national legislative framework for
standardizing licensing procedures across all counties. This bill seeks to create
greater certainty and reduce the burden of navigating disparate licensing regimes,
although its current status and ultimate impact remain to be fully determined 2.

In addition to the primary legal framework provided by the County Governments Act
and county-specific legislation, businesses must also be aware of other relevant
national laws that may indirectly impact trade licensing. These include national
statutes such as the Public Health Act, which sets standards for hygiene and
sanitation that businesses, particularly those in the food and hospitality sectors, must
meet to obtain and maintain a trade license. Similarly, the Environmental Management
and Coordination Act (EMCA) may impose environmental regulations that certain
businesses must comply with as a condition of their trade license. Sector-specific
legislation governing industries like manufacturing, financial services, and
transportation may also contain provisions that interact with county trade licensing
requirements, creating a multi-layered regulatory environment that businesses must
navigate 19.

The Application Process for a County Trade License


The process of applying for a trade license from a county government in Kenya
typically involves several key steps. The initial stage requires identifying the specific
county in which the business intends to operate and locating the relevant licensing
authority within the county administration, often a directorate or department
responsible for trade, commerce, or revenue 9. Prospective business owners must
then obtain the prescribed application form, which may be available physically at the
county government offices or accessible for download and electronic submission
through the county's official website or the national eCitizen platform 20. It is crucial at
this stage to carefully identify the correct category of trade license that aligns with
the specific nature and scope of the intended business activities, as different types of
businesses may be subject to varying licensing requirements and fees 9.

A comprehensive application for a county trade license generally necessitates the


submission of several supporting documents. These commonly include a copy of the
business registration certificate, identification documents (such as national IDs or
passports) of the business owners or directors, proof of the business's physical
address or location (e.g., a lease agreement or title deed), the Kenya Revenue
Authority (KRA) PIN certificate, and a tax compliance certificate 5. Depending on the
specific type of business, additional sector-specific permits or approvals from other
regulatory bodies may also be required as part of the application 21. Once the
application form is completed and all necessary documentation is gathered, the
applicant must formally submit these to the designated county licensing authority,
either through physical delivery to the county offices or electronically via an online
portal, if available 23. This submission is usually accompanied by the payment of the
prescribed fees, which typically consist of a non-refundable application fee and the
actual license fee, the amount of which can vary significantly based on factors such
as the county, the type and size of the business, and its annual turnover 6. Payment
methods may include cash, mobile money transfer services, or bank transfers,
depending on the county's established procedures 3.

Upon receiving a trade license application, the county licensing authority will
undertake a thorough assessment to ensure that the applicant meets all the
stipulated criteria and complies with the relevant national and county laws,
particularly those pertaining to public health, safety standards, and land use zoning
regulations 7. As part of this assessment process, authorized county officials, such as
licensing officers or public health inspectors, may conduct physical inspections of the
business premises to verify compliance with the necessary standards and regulations
before a final decision on the license application is made 4. Following the assessment
and any required inspections, the designated licensing officer or the Directorate of
Trade Licensing within the county government will make a formal decision to either
grant the trade license, potentially with specific conditions attached, or deny the
application if the stipulated requirements are not fulfilled 5. It is important to note that
some county trade licensing laws specify statutory timelines within which the
licensing authority is expected to process and determine applications. For example,
the Nairobi City County Trade Licensing Act, 2019, sets a 14-day timeframe for this
process 5. In some instances, failure by the licensing authority to adhere to these
timelines may result in the application being deemed automatically approved 19. If the
application is successful, the county government will issue an official trade license
document to the applicant. This license typically includes essential details such as the
name of the business, its physical address, the specific type of trade or business
activity authorized, the period for which the license is valid (often a calendar year),
and any specific conditions that the business must adhere to 5. Finally, there is usually
a legal requirement for the business owner or operator to prominently display the
original trade license at the business premises in a location where it is easily visible to
both the public and authorized county officials 3.

While the general steps involved in applying for a county trade license exhibit
similarities across different counties in Kenya, there can be significant variations in the
specific required documents, the applicable fees, the methods of payment accepted,
and the statutory timelines for processing applications 3. Therefore, it is imperative for
any business seeking to obtain a trade license to consult the specific trade licensing
laws and regulations that have been enacted by the county in which they intend to
operate 25. A detailed examination of the trade licensing acts and bills of various
counties, such as Migori, Kericho, Nairobi City County, Kiambu, Baringo, and Marsabit,
reveals a common underlying structure to the application process. This structure
generally involves the submission of prescribed application forms, the provision of
specified supporting documents, the payment of applicable fees, and an assessment
of the application by the licensing authority 7. However, the precise types of
documents that are required, the exact amounts of fees payable, the accepted
methods for making payments, and the legally mandated timelines for processing
applications can differ considerably from one county to another. These variations
often reflect the unique administrative and regulatory contexts of each county, as well
as their specific economic development objectives and revenue generation strategies
9
.

There is an observable trend in some Kenyan counties towards the increasing


adoption of online platforms and digital systems for the various stages of the trade
licensing process, including application submission, document uploads, fee payment,
and license issuance 9. This move towards digitalization is generally aimed at
enhancing efficiency, improving transparency, reducing bureaucratic delays, and
making the licensing process more accessible for businesses 6. For example, the
national eCitizen platform is often cited as a potential avenue through which
businesses can access and apply for various government services, including business
permits and licenses 21. However, the extent to which all 47 county governments have
fully integrated their trade licensing processes with this or other sophisticated online
platforms is not yet uniform across the country 5. While some counties may have
well-developed online portals that streamline the entire licensing process, others may
still rely predominantly on traditional manual, paper-based procedures 5. This
disparity in the adoption of digital technologies can lead to variations in the ease and
speed with which businesses can obtain trade licenses, depending on the specific
county in which they are operating 20.

Administrative Law Principles and County Trade Licensing


The process of obtaining a trade license from a county government in Kenya is
fundamentally governed by the principles of administrative law, which aim to ensure
that public authorities exercise their powers lawfully, reasonably, and fairly. These
principles are enshrined in the Constitution of Kenya, particularly Article 47, and are
further elaborated in the Fair Administrative Action Act, 2015 27.

The principle of legality dictates that a county government, through its designated
licensing authority, must have a clear legal basis for regulating trade and issuing
licenses. This legal basis is derived from the County Governments Act, 2012, and the
specific trade licensing acts or bylaws enacted by the respective county assembly 1.
All actions taken by the licensing authority, from setting the requirements for
obtaining a license to making decisions on individual applications, must be strictly
within the scope of the powers conferred upon it by these legal instruments 10. The
concept of ultra vires is central to this principle, meaning that the licensing authority is
prohibited from acting beyond its legally granted powers. Any licensing requirement or
decision that falls outside the scope of the enabling legislation is considered unlawful
and can be challenged through judicial review. This ensures that county governments
do not arbitrarily create or enforce trade licensing regulations without a clear and
demonstrable legal mandate 2.

The principle of rationality demands that licensing decisions made by county


authorities are based on logical, relevant, and justifiable grounds 27. The criteria
established for granting or denying a trade license should be reasonable, clearly
defined in the county's legislation, and directly related to the legitimate objectives of
trade regulation. These objectives often include promoting fair trade practices,
ensuring public safety and health, maintaining environmental standards, and
generating revenue for the county. There must be a discernible and rational
connection between the specific licensing requirements imposed by the county and
the overarching objectives they are intended to achieve 27. Licensing decisions should
not be arbitrary, capricious, or based on irrelevant considerations, but rather
grounded in objective criteria and supported by evidence, thus promoting fairness
and predictability in the licensing process for all applicants 29.

Procedural fairness is another fundamental principle that county governments must


adhere to when making decisions related to trade licensing 27. This principle
encompasses the rules of natural justice, requiring that applicants are treated justly
and with due process. Key elements of procedural fairness include providing
applicants with the right to be heard, ensuring they receive adequate notice of any
proposed adverse decisions (such as the denial or revocation of a license), granting
them a fair opportunity to present their case and respond to any concerns or
objections raised by the licensing authority, and informing them of their right to
appeal an unfavorable decision 30. A critical aspect of procedural fairness is the
obligation of the licensing authority to provide clear and comprehensive written
reasons for any decision to deny a trade license 31. These reasons should be specific
and directly linked to the criteria outlined in the county's trade licensing legislation,
enabling applicants to understand the basis for the decision and to make informed
decisions about whether to reapply or pursue an appeal 33. The Fair Administrative
Action Act, 2015, significantly reinforces these principles by setting out minimum
standards for fair administrative action by all public bodies in Kenya, including county
governments 31.

Finally, the principle of proportionality dictates that any requirements, conditions, or


restrictions imposed on a trade license by a county government should be
proportionate to the legitimate objective they aim to achieve 27. The burden placed on
the applicant or license holder should not be excessive or outweigh the benefits of
the regulation. Licensing authorities should consider less restrictive measures before
resorting to denying a license or imposing unduly stringent conditions that could stifle
legitimate business activities 27. This principle requires a careful balancing act
between the county government's regulatory objectives, such as ensuring public
safety or environmental protection, and the potential impact of licensing requirements
on businesses, particularly small and medium-sized enterprises (SMEs) 35. Licensing
requirements should represent the least restrictive means of achieving the desired
regulatory outcome 33.

Delegated Legislation: County Bylaws on Trade Licensing


County bylaws represent a crucial form of delegated legislation, enacted by county
assemblies under the authority conferred upon them by the County Governments Act,
2012 11. These bylaws serve as the detailed rules and regulations that govern various
aspects of county administration, including the specifics of trade licensing within their
respective jurisdictions 12. They possess the full force and effect of law within the
county for which they are enacted, providing the practical framework for
implementing the broader provisions of the County Governments Act in the local
context.

The legislative authority of county assemblies, while significant in Kenya's devolved


system of governance, is not without limitations. The powers that are delegated to
counties by the County Governments Act are subject to certain constraints, and
consequently, county bylaws must operate strictly within the scope and parameters
that are defined by this enabling national legislation and the Constitution of Kenya 11.
County assemblies are not permitted to enact bylaws that exceed the powers that
have been specifically delegated to them, nor can they encroach upon the functions
that are exclusively reserved for the national government. Furthermore, a fundamental
principle is that all county bylaws must be consistent with the provisions of the
Constitution and all relevant national legislation; any bylaw that contravenes these
superior laws would be considered invalid and unenforceable 37.

County bylaws on trade licensing are expected to clearly specify the particular
purposes for which trade licenses are mandated within the county 3. These purposes
can vary depending on the specific needs and priorities of the county but often
include the generation of revenue to fund county services, the regulation of specific
types of business activities to ensure compliance with established standards, the
protection of public health and safety, the management of land use and zoning
regulations, and the promotion of fair and ethical trade practices 5. In addition to
outlining the purposes of licensing, these bylaws should also explicitly define the
limits and scope of the powers that are granted to the county licensing authority,
which is typically a directorate or department within the county government 5. This
delineation of authority should clearly outline the specific actions that the licensing
body is authorized to take in the administration and enforcement of the trade
licensing regime, such as the processing of applications, the issuance of licenses, the
imposition of conditions, and the undertaking of inspections 8. Clearly defining the
purpose and limits of the licensing authority's powers within county bylaws is of
paramount importance for ensuring accountability, preventing the arbitrary exercise
of discretion by licensing officials, and providing businesses with a clear and
predictable understanding of the regulatory framework under which they are
operating 3.

A cornerstone of Kenya's constitutional framework is the requirement for public


participation in the enactment of legislation at both the national and county levels 11.
This constitutional imperative, as enshrined in Articles 10(2)(a) and 196(1)(b) of the
Constitution of Kenya, extends to the formulation and enactment of county bylaws,
including those related to trade licensing 19. County assemblies are obligated to
facilitate the involvement of the public, including the business community and
residents, in the process of developing these local laws that will directly impact their
lives and livelihoods 19. To ensure meaningful public participation, county assemblies
typically employ various mechanisms to solicit feedback and input from stakeholders.
These can include publishing draft bylaws for public review and comment, conducting
public hearings or forums where individuals and groups can voice their opinions and
concerns, utilizing online platforms such as county websites or social media for
consultations, and engaging directly with relevant business associations, community
organizations, and other interested parties 38. The active involvement of the public in
the formulation of trade licensing bylaws is intended to ensure that the regulations are
relevant, practical, responsive to the needs and concerns of those who will be
affected, and ultimately enjoy greater legitimacy and public acceptance 40. By
providing opportunities for input and feedback, county governments can create more
effective and business-friendly trade licensing regimes that support local economic
development and foster a more collaborative relationship between the county
administration and the business community 42.

The Appeals Procedure for Denied Trade License Applications


When a county government denies an application for a trade license, applicants
typically have recourse through an established appeals procedure. The initial step in
this process often involves seeking an internal review or reconsideration of the
decision within the county administration itself, particularly if such a mechanism is
explicitly outlined in the county's trade licensing act or bylaws 24. To initiate an internal
appeal, the applicant usually needs to submit a formal written letter to the designated
officer or committee within the county licensing authority 3. This letter should clearly
articulate the grounds for the appeal, specifying the reasons why the applicant
believes the denial decision was incorrect or unjustified, and should be accompanied
by any relevant supporting documentation or additional information that could
strengthen their case 25.

In many counties, the trade licensing legislation specifies a particular body or


authority to which an initial appeal should be directed. A common first point of appeal
is the County Executive Committee Member (CEC) who holds responsibility for the
relevant sector, such as trade, finance, or commerce 3. For instance, the Migori County
Trade Licensing Act, 2016, stipulates that a person aggrieved by a decision of the
County Licensing Officer may appeal to the county executive member responsible for
Trade 26. Similarly, the Baringo County Trade Licence Bill, 2022, indicates that an
appeal against the decision of the County Licensing Officer can be made to the
county executive member responsible for finance 7. In some counties, the trade
licensing act may establish a specific Trade Licensing Appeals Committee to hear and
determine appeals related to licensing decisions 5. The Nairobi City County Trade
Licensing Act, 2019, for example, establishes such a committee 5. Ultimately, after
exhausting any internal appeals mechanisms provided by the county, applicants may
have the option to appeal further to the High Court of Kenya, particularly on questions
of law arising from the decision of the county government or the appeals committee 4.

County trade licensing laws typically prescribe specific and often strict timelines
within which an appeal against a denied license application must be lodged with the
relevant appeal authority 24. These timelines are usually expressed as a specific
number of days from the date on which the applicant was officially notified of the
decision to deny the license. For example, some counties may require an appeal to be
filed within 14 days, while others might allow a period of 21 or 30 days 3. It is critically
important for applicants to adhere to these statutory deadlines, as failure to lodge an
appeal within the prescribed time limit may result in the appeal being deemed invalid
or time-barred, thereby upholding the original denial decision 25.

Applicants typically base their appeals on specific grounds, arguing that the initial
denial decision was flawed in some way. Common grounds for appeal include
assertions that the county licensing authority misinterpreted or incorrectly applied the
relevant provisions of the applicable trade licensing act or bylaws, or that the decision
was based on factual errors, insufficient evidence, or a misunderstanding of the
information provided in the application 26. Applicants may also argue that the licensing
authority acted in a procedurally unfair manner, such as by failing to provide them
with an opportunity to be heard or by not giving adequate reasons for the denial 7.
Other potential grounds for appeal could include claims that the applicant met all the
legal requirements and criteria for the issuance of the trade license as outlined in the
county's legislation, or that the denial decision was unreasonable, irrational, or
disproportionate to the stated objectives of the licensing regime 24.

National Legislation and the Appeals Process


While the County Governments Act, 2012, empowers counties to establish their own
trade licensing regimes, it does not prescribe a uniform national appeals procedure
for licensing decisions 36. The responsibility for outlining the appeals process is largely
left to the individual county governments to determine through their specific trade
licensing acts and bylaws.

However, the Fair Administrative Action Act, 2015 (FAAA), plays a significant role in
influencing the appeals process for denied trade license applications at the county
level 27. The FAAA establishes minimum standards for fair administrative action that all
public bodies in Kenya, including county governments and their licensing authorities,
must adhere to when making decisions that affect the rights or interests of individuals
or businesses, such as the granting or denial of trade licenses 43. If an applicant for a
trade license believes that the county government's decision to deny their application
was unlawful, unreasonable, procedurally unfair, or violated any of the principles
enshrined in the FAAA, they have the right to seek judicial review of that decision by
the High Court of Kenya 44. This right to judicial review under the FAAA exists even
after an applicant has exhausted any internal appeals mechanisms that are provided
by the county government. Section 6 of the FAAA also imposes a crucial requirement
on administrative bodies, including county licensing authorities, to provide written
reasons for any administrative action that adversely affects a person's rights or
fundamental freedoms 32. This obligation to provide reasons is fundamental to
ensuring transparency and facilitating the ability of aggrieved applicants to
understand the basis of the denial and to formulate grounds for appeal or judicial
review 33.

The Fair Administrative Action Act thus provides a critical layer of legal protection for
applicants who have been denied a trade license by a county government 28. It
establishes fundamental principles of fair administrative action that county licensing
authorities must uphold and offers a pathway for seeking judicial review in the High
Court if these principles are violated, regardless of the specific appeals mechanisms
(or lack thereof) provided in the county's own trade licensing legislation 34. The Act's
emphasis on legality, rationality, procedural fairness, and the provision of written
reasons creates a baseline standard for administrative justice that applies to all levels
of government in Kenya 31.

Illustrative Examples from County Bylaws and Regulations


To illustrate the variations in appeals procedures across counties, the following table
summarizes the processes in selected counties based on the reviewed snippets:

Table 1: Summary of Appeals Procedures in Selected Counties

County Initial Appeal Timeline for Further Appeal Timeline for


Authority Initial Appeal Authority Further Appeal
(within County)

Migori County County 14 days County Not Specified


Executive Executive
Member (Trade) Member
(Finance)

Kericho County Licensing Not Specified Trade Licensing Not Specified


Authority Appeal
Committee

Nairobi City Trade Licensing 14 days Not Specified Not Specified


County Appeals
Committee

Kiambu County Licensing Not Specified Not Specified Not Specified


Officer

Baringo County County Not Specified Not Specified Not Specified


Executive
Member
(Finance)
Marsabit County Executive 14 days High Court 21 days
Committee
Member

Kericho County Trade Licensing Not Specified Court of 21 days


(Further) Appeal Competent
Committee Jurisdiction

As evident from the table, the initial appeal authority can vary, ranging from the CEC
responsible for a specific sector to a dedicated appeals committee. Timelines for
appeals are often specified, typically within 14 to 30 days. Some counties, like
Marsabit, explicitly provide for a further appeal to the High Court after the initial
internal appeal, while others may not detail this within their trade licensing legislation,
relying instead on the provisions of the Fair Administrative Action Act for judicial
review.

Conclusion and Recommendations


Obtaining a trade license from a county government in Kenya is a multifaceted
process governed by a blend of national and county-specific legislation, underpinned
by fundamental principles of administrative law. While the County Governments Act
provides the overarching framework, the specifics of the application process,
licensing requirements, and appeals procedures are largely determined by individual
county bylaws and regulations. This decentralized approach, while allowing for local
adaptation, can create complexities for businesses operating across multiple
counties. The principles of legality, rationality, procedural fairness, and proportionality,
as enshrined in the Constitution and the Fair Administrative Action Act, serve as
crucial safeguards to ensure that county governments exercise their licensing powers
in a just and equitable manner. The availability of appeals procedures, both within the
county administration and through judicial review by the High Court, provides avenues
for recourse when license applications are denied.

To enhance the efficiency, transparency, and fairness of the county trade licensing
system in Kenya, the following recommendations are proposed:

1.​ Improve Information Accessibility: County governments should invest in


making comprehensive and easily accessible information regarding their trade
licensing requirements, application procedures, fee structures, and appeals
processes available to the public. This can be achieved through user-friendly
websites, dedicated online portals, and easily understandable guides and
brochures.
2.​ Promote Uniformity: While recognizing the need for local adaptation, efforts
should be made to promote greater uniformity in core aspects of the trade
licensing process across different counties. The national-level County Licensing
(Uniform Procedures) Bill, 2022, represents a positive step in this direction and
should be considered for effective implementation to reduce the compliance
burden on businesses operating in multiple counties.
3.​ Strengthen Internal Appeals: County governments should establish or
strengthen robust and clearly defined internal appeals mechanisms for denied
trade license applications. These mechanisms should ensure a fair, impartial, and
timely review of the initial decision by a higher authority within the county
administration, such as a dedicated appeals committee or the relevant County
Executive Committee Member.
4.​ Enhance Training on Administrative Law: County government officials and staff
involved in the administration of trade licensing should receive comprehensive
training on the principles of fair administrative action, as outlined in Article 47 of
the Constitution and the Fair Administrative Action Act, 2015. This training should
emphasize their obligations to act lawfully, rationally, and with procedural fairness
in all licensing matters.
5.​ Foster Public Participation: County governments should actively engage the
public, including the business community, in the formulation, enactment, and
periodic review of their trade licensing bylaws and regulations. This can be
achieved through public hearings, online consultations, and engagement with
relevant stakeholder groups to ensure that the regulations are practical, relevant,
and enjoy broad support.
6.​ Consider Independent Tribunals: For a more specialized and potentially faster
resolution of licensing disputes, county governments could explore the
establishment of independent county-level administrative tribunals or
quasi-judicial bodies with specific expertise in trade licensing and other
administrative matters. These tribunals could provide an alternative to the
traditional court system for hearing appeals.

In conclusion, a fair, transparent, and efficient trade licensing system at the county
level is of paramount importance for fostering a conducive environment for local
economic development, encouraging entrepreneurship, and promoting overall
prosperity within Kenyan counties. By adhering to the principles of administrative law,
ensuring clarity in delegated legislation, and providing effective avenues for appeal,
county governments can create a regulatory framework that supports business
growth while upholding the rule of law.
Works cited

1.​ THE COUNTY GOVERNMENTS ACT, 2012 ARRANGEMENT OF SECTIONS Section


PART I - ConstitutionNet, accessed March 29, 2025,
https://constitutionnet.org/sites/default/files/the_county_government_act_2012.p
df
2.​ County Government Structure in Kenya | icma.org, accessed March 29, 2025,
https://icma.org/articles/article/county-government-structure-kenya
3.​ Migori County Trade Licensing Act, 2016, accessed March 29, 2025,
https://migoriassembly.go.ke/wp-content/uploads/2024/10/Migori-County-Trade-
Licensing-Act-2016.pdf
4.​ The Kericho County Trade Licensing Act, 2017., accessed March 29, 2025,
https://kerichoassembly.go.ke/sites/default/files/2024-09/The%20Kericho%20Co
unty%20Trade%20Licencing%20Act%2C%202017.pdf
5.​ Nairobi City County Trade Licensing Act, 2019, accessed March 29, 2025,
https://nairobiassembly.go.ke/ncca/wp-content/uploads/act/2019/Nairobi-City-Co
unty-Trade-Licensing-Act-2019-.pdf
6.​ How to Pay for and Renew Your Annual Trade License Online in Kenya | Cyber
Mfukoni, accessed March 29, 2025,
https://cybermfukoni.co.ke/blog/how-to-pay-for-and-renew-your-annual-trade-li
cense-online-in-kenya
7.​ The Baringo County Trade Licence Bill, 2022, accessed March 29, 2025,
https://baringoassembly.go.ke/index.php/order?download=721:the-baringo-count
y-trade-licence-bill-2022
8.​ kiambu.go.ke, accessed March 29, 2025,
https://kiambu.go.ke/wp-content/uploads/2023/12/The-Kiambu-county-Trade-Lic
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