Business leaders across Kenya are advocating for the government to settle outstanding bills owed to contractors and suppliers. This intervention, they contend, is crucial for improving monetary circulation and invigorating the national economy.
The business community asserts that delayed payments have significantly hampered economic liquidity. This situation has notably affected various enterprises and nascent start-ups throughout the country, impacting their operational stability and growth potential.
Perminus Kariuki, proprietor of Nyota Njema Properties, highlighted the severe impact during the Topspin Excellence Awards in Nairobi. He noted that many businesses have resorted to downsizing, resulting in job losses for numerous Kenyans.
Firms have implemented deliberate measures, including retrenchments, to maintain operational viability amidst financial constraints. Kariuki emphasized the struggle for sustenance and expansion faced by businesses this year due to reduced money in circulation.
Kariuki expressed optimism that governmental interventions, specifically the prompt payment of pending bills, will foster economic circulation next year. This, he believes, would create an environment conducive to business prosperity nationwide.
He further urged the government to prioritize collaboration with local businesses rather than outsourcing services from multinational corporations. Such a strategy, he argued, would stimulate domestic growth and create substantial employment opportunities within the country.
Kariuki also observed a significant reduction in Kenyans’ purchasing power due to financial scarcity. This decline, he added, has adversely affected investment levels, contributing to a general slowdown in the nation’s economic activities.
Imran Sokwala, CEO of Precision Automotive, called for government support for the private sector, particularly the automotive industry. He proposed friendlier laws, policies, and tax reliefs to bolster its contribution to the economy.
Sokwala underscored the automotive industry’s substantial role in generating billions in foreign exchange for the country. He projected that with tax reliefs and incentives, the sector could create over one million jobs for Kenyans.
He also emphasized the sector’s potential to embrace new technologies, such as electric vehicles, thereby contributing towards environmental conservation. Sokwala advocated for measures to enhance stability of the Kenyan shilling, reducing car import costs.
Kennedy Wachira of Kendirect Imports, a firm that supplies spare parts for luxury European vehicles, echoed calls for tax considerations. He urged the government to review import taxes on spare parts to foster business growth.
Wachira expressed hope for lower taxes on the sector by 2026, enabling businesses to participate more effectively in nation-building and job creation. He noted the industry’s struggles this year due to current economic situations.
Terry Muriuki of Baraka Real Estate reiterated that increased taxation in the real estate sector has deterred investments. This, she explained, has generated adverse ripple effects throughout the broader economy and housing market.
Muriuki specifically cited the increment of stamp duty in municipalities close to urban areas from 2% to 4%. This change has escalated land and housing prices, making home ownership challenging for ordinary Kenyans.
She cautioned the government to consider the prevailing economic climate in the country before introducing more taxes. Such measures, she suggested, might deter vital investors pivotal to economic recovery and growth.
Michael Mutua, Kwale County’s Trade and Tourism Executive, acknowledged the difficulties businesses faced this year. However, he noted a flourishing tourism sector with an increased number of foreign visitors.
Mutua asserted that both national and county governments must allocate more resources to enhance infrastructure. Additionally, he emphasized the importance of marketing new attraction sites across the country to further bolster tourism.
