APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA 401. Furthermore, there are several pending issues that require resolution. They comprise the existence of non-tariff barriers; enhancement of free movement of labour, capital and goods and services, development of cross-border infrastructure, financial and fiscal integration, and effective public involvement. The business community, especially the manufacturing sector, has identified other challenges. Among the leading issues are the delay to gazette the revised EAC rules of origin that were adopted by the Council of Ministers in 2014, double taxation with adverse implication for revenue generation, lack of reciprocity from other member states of the EAC and the presence of counterfeits that encumber trade in locally produced goods. 4.7.3 Recommendations of the Panel 402. The Panel recommends the following: i) Kenya is a major player in the EAC. The Government of Kenya is, therefore, advised to spearhead the articulation of a compensatory mechanism whereby any member state that records revenue loss due to the removal of tariffs and trade barriers is adequately compensated (The National Treasury, Labour & EAC Affairs, CBK). ii) An important recommendation in the 2006 APRM report was that Kenya’s activities in regional integration be made known to the general public through sensitisation using radio and television programmes, debates and discussions, among others. The idea is to promote regional integration between Kenya and her neighbours. This has not been achieved to the fullest degree possible. There is need for the Government of Kenya to intensify awareness about regional integration [Ministry of Labour & EAC Affairs, The National Treasury, CBK] 4.8 OBJECTIVE 6: DEVELOP AND IMPLEMENT TRADE AND INVESTMENT POLICIES THAT PROMOTE ECONOMIC GROWTH 4.8.1 Summary of the Country Self-Assessment (CSAR) Trade and Investment Policies 403. The CSAR discusses the various legislations that Kenya has enacted to promote trade, investment and economic growth. It indicates that the Investment Promotion Act (IPA) of 2004 is institutional and legislative framework governing Kenya’s efforts at promoting investment. Other important regulatory institutions on investment in Kenya are the Central Bank of Kenya (CBK), the Export Processing Zones Authority (EPZA), the Capital Markets Authority (CMA), and the Nairobi Securities Exchange (NSE), the National Environment Management Authority for environmental certification and audit, and the Communications Commission of Kenya on regulation of investments in the ICT sector. The CSAR draws attention to government’s reforms (competition policy, tax administration and labour legislation) directed at promoting trade and investment. The government has prioritized human capital development over the past five years, through vocational training, and | 175 |