EXCESSIVE MULTIPLICITY OF LICENSES AND DUPLICATION DETECTED IN THE PROCEDURES

According to the Business License Reform Committee (BLRC) Draft Report – a project of World Bank, there are over 766 licenses issued by both central and local government agencies country-wide about 540 of which are issued by 65 MDAs, while 226 are issued by local governments. The identified licenses are issued under 87 laws and 174 regulations, half of which were enacted before liberalisation was officially embraced in 1991 and therefore need to be urgently reformed.

The report also noted, excessive multiplicity of licenses and duplication of procedures. The total annual cost incurred by businesses in complying with licensing requirements is estimated at Shs725 billion representing 3.49% GDP.

The BLRC recommended that licenses that serve no legitimate regulatory purpose be eliminated and that the number of licenses be streamlined to only 294 licenses from the current 766. They also proposed that some licenses especially those that serve the same purpose be amalgamated while others be reclassified to save on time and duplication. They also proposed amendments of the respective laws and regulations.

While there is urgent need for reforms, the private sector has in the past and today continues to complain about the slow implementation of business reforms both legislation level (parliament) as well as implementation level (cabinet & civil service) level.