The Kenyan government is advancing a plan to create a new statutory body, the Business Council of Kenya, aimed at unifying the country's diverse and often divided private sector lobbies. This move, proposed in the Public Sector-Private Sector Engagement Bill of 2025, seeks to create a single, government-mandated forum for business advocacy.

This development comes as a direct response to the government's criticism that existing business groups present a “divided front, diluting their influence” on critical policy matters. For years, Kenyan businesses have voiced concerns over sudden regulatory changes, a wave of new taxes under the Kenya Kwanza administration, and a lack of meaningful consultation, which they argue has created an uncompetitive environment.

Reshaping the Landscape of Advocacy

The establishment of the Business Council of Kenya could fundamentally reposition the country's most powerful business lobbies. These organisations, while having distinct mandates, will likely become members of this new umbrella body. The primary groups that could be affected include:

• The Kenya Private Sector Alliance (KEPSA): The current apex body for the private sector.
• The Kenya Association of Manufacturers (KAM): Advocates for a competitive and sustainable manufacturing sector.
• The Kenya National Chamber of Commerce and Industry (KNCCI): Promotes trade and enterprise for its broad membership base.
• The Federation of Kenya Employers (FKE): Focuses on employment and industrial relations matters.

Government officials contend that the new Council will not replace these entities but will instead serve as a central point of engagement to strengthen their collective bargaining power. This initiative reflects a broader push for more structured dialogue between the state and the business community.

A History of Fractured Dialogue

The push for a unified council is not happening in a vacuum. Recently, leaders have called for more proactive engagement from the private sector in shaping legislation. Historically, while there have been collaborations on economic reforms, a perceived lack of a unified voice from business leaders during critical debates, such as the 2024 Finance Bill, has been noted. Business leaders have frequently lamented the high cost of energy, multiple taxes, and pending bills as significant hurdles to growth.

While the government's stated aim is to foster a more cohesive and influential private sector voice, the reception from the various business lobbies remains to be seen. The coming months will be crucial in determining whether this new council will be a tool for genuine partnership or a means of centralising control over private sector advocacy.