Measures to Address Legal and Regulatory Environment Issues Facing SMEs

Anthony M. Wanjohi:

Unfriendly legal and regulatory environment factor in business operation has been cited as one of the major impediment to the growth of Small and Medium Enterprises (SMEs) in Kenya (Wanjohi, 2009). As such, there is need for government to put in place sound measures to address the issue of stringent regulations related to business operations in Kenya.


In one study conducted by Kamau (2010) on the managing the challenges facing SMEs in Kenya, the respondents were asked to suggest the measures that can be adopted to manage legal and regulatory environment issues facing the operation of SMEs within Nairobi Central Business District (NCBD).



With regard to the approaches that could be adopted to improve legal and regulatory environment in Nairobi, 33 per cent of the respondents indicated that taking legal measures against corrupt officers could improve business operations. Another 21 per cent indicated that review of license charges could facilitate smooth running of business without much burden being placed on the individual entrepreneurs.  That measures that were cited by a considerable number of the respondents included monitoring and evaluation of the city council’s performance and review of business registration procedure.


If these intervention measures are taking into consideration through consultative approach where various stakeholders are involved (both in government and private sector), the burden of stringent business and legal provisions could be eased.



Kamau, P. (2010). Managing Challenges Facing Small and Medium Enterprises in Nairobi Central Business District. Journal of Research Abstracts, JRA, Volume 4, 2010.


Wanjohi, A. (2009). Challenges Facing SMEs in Kenya. Available online at