A government’s proposal to centralise the advocacy function of business lobbies has triggered outrage with sector players seeing it as a “calculated” move to kill them, and take away their freedom to engage the state on legal and policy issues.
At the centre of the government’s push is the draft Public Sector-Private Sector Engagement Bill 2025, which seeks to provide for the conduct and coordination of public-private engagements in Kenya.
The draft Bill was developed by the State Department for Investment Promotion under Principal Secretary Abubakar Hassan.
It seeks to create the Business Council of Kenya (BCK), a 12-member powerful umbrella body with representatives from the lobbies and business management organisations.
The BCK shall consist of a board and secretariat charged with the day-to-day management function, organise and host the presidential business roundtable twice a year.
“There is established the Business Council of Kenya which shall be a body corporate with perpetual succession and shall, in its corporate name be capable of suing and being sued,” reads clause five of the draft Bill.
The Bill, if passed as drafted, means that BCK will be the mouthpiece of the over 130 business lobbies in the country.
They include the Kenya National Chamber of Commerce and Industry (KNCCI), Kenya Private Sector Alliance (KEPSA), Federation of Kenya Employers (FKE) and the Kenya Association of Manufacturers (KAM) among others.
Currently, registered business lobbies do their work individually based on the issues that affect their sector as evidenced during the consideration of the Finance Bill.
But even as the sector players dismissed the draft Bill as an attempt by the state to muzzle their voice, PS Abubakar in an interview with Nation, defended it saying it seeks to establish a legal framework for engagement of the public sector and the private sector.
This he says, is “for the purpose of enhancing the investment climate, business environment to establish the BCK.”
“The object of this Act shall be to establish BCK to strengthen the capacity of business membership organisations to effectively engage the government for effective policy advocacy,” says Abubakar adding; “it will enhance government coordination for private engagements.”
The department has invited Kenyans to submit their comments, inputs or memorandum on the draft Bill that has since been uploaded on its website.
This is ahead of the December 9, 2025 scheduled public consultation exercise across the 46 counties clustered in five regions- Eldoret, Kisumu, Mombasa, Nyeri and Garissa.
Ms Jacqueline Mugo addressing the press on the survey findings on the impact of Covid- 19 on enterprises at Waajiri House in Nairobi in September, last year.
Photo credit: Lucy Wanjiru | Nation Media Group
However, FKE Executive Director and CEO Jacqueline Mugo notes that draft Bill as drafted, seeks to muzzle the voice of the private sector as it takes away its independence to engage the government and input in public policy.
“At this stage, it is not clear what problem the Bill seeks to address or whether there are existing legal gaps it intends to cure,” says Ms Mugo adding; “the Bill appears to introduce unnecessary layers of bureaucracy, which may in turn impede and suppress the public participation framework envisioned by the constitution.”
KNCCI President Erick Rutto said his organisation will make its position known after the scheduled public consultation across the country.
“We will present our views through our 47 KNCCI chapters and our affiliated business management organisations during the planned public sensitisation,” said Rutto.
The KNCCI boss added: “After the public sensitisation exercise, the KNNCI national office will issue a statement stating its position on the draft Bill.”
Kenya Association of Manufacturers CEO Tobias Alando.
Photo credit: Bonface Bogita | Nation Media Group
KAM chief executive officer Tobias Alando and his KEPSA counterpart Carole Kariuki did not respond to our inquiries sent to their known mobile numbers. This even as KAM communications boss, Mr Lawrence Njenga, said “we are collecting feedback from our members to develop a position on the draft Bill.”
According to Ms Mugo, FKE is a creation of International Labour Standards, established within the International Labour Organization (ILO) tripartite structure to which Kenya is a signatory.
This globally recognised structure comprising employers, workers and government, she says, “forms the foundation of effective labour governance and social dialogue.”
Labour governance principles
She adds that FKE’s mandate as the employers’ representative “in this framework, is unique and distinct, and cannot be transferred to, vested in or absorbed under any other institution without undermining well-established international labour governance principles.”
Ms Mugo notes that FKE’s role is anchored in Article 41 (4) (a) of Constitution and the principal labour laws, which the FKE boss says, “expressly designate the federation as the employers’ voice in industrial relations, social dialogue and labour policy formulation.”
The FKE mandate further extends beyond national boundaries through active representation at the East Africa Employers’ Organisation (EAEO), Business Africa Employers’ Confederation (BAEC) and the International Organisation of Employers (IOE), “ensuring that Kenyan employers have a strong and credible voice at regional, continental and global levels.”
Therefore, according to Ms Mugo, the proposal to place FKE under an umbrella body poses “profound implications.”
“It risks dismantling internationally recognised tripartism, weakening the autonomy and independence of the employers’ constituency and reducing the effectiveness of employer participation in labour market governance, economic development and national policy processes,” says the FKE boss.
Nonetheless, Ms Mugo noted that FKE remains committed to constructive dialogue and collaboration with all stakeholders stressing that such engagement must be undertaken in a manner that preserves the integrity of tripartism and safeguards the statutory and international mandate of the federation.
The functions of the BCK, the draft Bill proposes, shall be to register business membership organisations as members of the council as well as collect and collate the views of the BCK members on issues affecting investment climate and business operating environment.
The council shall also be tasked with promoting international recognition of the council, review issues and categorise into cross-cutting and sector specific issues, submit and engage with the Cabinet secretary on the business issues for administrative, policy and legal interventions including budget making and introduction of levies.
The council shall also offer technical support and capacity building to members on tackling issues affecting the business environment.
