Business lobbies warn of ‘power grab’ in proposed Public–Private Engagement Bill

The government’s proposal to centralise the advocacy role of business lobbies has sparked outrage among private sector players, who view the move as a calculated attempt to weaken independent business associations and curtail their freedom to engage the State on policy and legislative matters.

At the centre of the controversy is the draft Public Sector–Private Sector Engagement Bill, 2025, which seeks to regulate and coordinate how government and the private sector interact in Kenya. While the State argues that the proposed law will streamline engagement and enhance coordination, business leaders warn it could fundamentally alter the balance of power between the State and organised private sector groups.

Insiders have blamed the Kenya National Chamber of Commerce and Industry (KNCCI), the national business lobby for allegedly backing the controversial Bill amid claims of internal divisions within the Chamber with one faction opposed to the move.

“One faction of KNCCI backing the government sponsored bill to muzzle the business community is advancing selfish interest since they fear they might lose seat in the upcoming Chamber elections in June 2026,” our source intimated.

“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 draft Bill was developed by the State Department for Investment Promotion under the leadership of Principal Secretary Abubakar Hassan. It proposes the establishment of a powerful new umbrella body known as the Business Council of Kenya (BCK).

According to the Bill, the BCK will be a 12-member council bringing together representatives from various business lobbies and Business Membership Organisations (BMOs). The council will be backed by a board to provide oversight and a secretariat responsible for its day-to-day operations. One of its core functions will be organising and hosting a presidential business roundtable twice every year.

Clause five of the draft legislation formally establishes the BCK as a corporate body with far-reaching powers. “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,” the clause reads.

If passed in its current form, the Bill would effectively make the BCK the official voice of Kenya’s business community, consolidating advocacy and engagement with government under a single institution. This would place more than 130 existing business lobbies under one umbrella, significantly redefining how they interact with the State.

These organisations include some of the country’s most influential private sector groups such as the Kenya National Chamber of Commerce and Industry (KNCCI), the Kenya Private Sector Alliance (KEPSA), the Federation of Kenya Employers (FKE) and the Kenya Association of Manufacturers (KAM).

Currently, the registered business lobbies do their advocacy work individually based on the issues that affect their sector players as evidenced during the consideration of the Finance Bill among other issues of national interest.

The State Department for Investment Promotion has invited Kenyans to submit their comments, inputs or memorandum on the draft Bill that has since been uploaded on its website latest December 10, 2025.

The public consultation exercise was conducted on December 9, 2025 across the 46 counties clustered in five regions- Eldoret, Kisumu, Mombasa, Nyeri and Garissa.

The council shall consist of a chairperson and 11 members that include one each from organizations in the sectors of manufacturing, finance, agriculture, and storage, transport and logistics sector.

The other sectors include tourism, micro and small enterprises, wholesale and retail, information and communication technology, building and construction, foreign based business membership organizations and a representative from umbrella business membership organizations in cross-cutting sectors.

The BCK board chairperson shall be elected from a business membership organization with the highest number of Micro, Small and Medium Enterprises (MSMEs).

The board members shall be elected at an annual general meeting by members of the council and shall hold office for a term of three years and shall be eligible for re-election for one further term, “unless the member of the board ceases to hold office.”

However, within three months of the commencement of the Act, the CS in charge of investment promotion shall appoint the chair and board members to serve on a one-year interim term and thereafter convene the Annual General Meeting (AGM) for election of the substantive members.

The functions of the BCK, the draft Bill proposes, shall be to register business membership organizations 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 categorize 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 the members of the council on the formulation of issues affecting the business operating environment, conduct research and provide consultancy services in the development of the public-private engagement framework.

There is also the development of public-private engagement frameworks, creation of awareness of the public-private engagement framework and all public-private engagements and collaboration and establishment of partnerships with their equivalence councils out of Kenya and relevant stakeholders in the performance of its functions.