Having freshly leapt into the new year, retrospect into the socioeconomic ambience that has epitomized the just concluded year, reveals it has been anything but rosy and promising. Mid- September, the legislature passed new tax policies that will see
employees dig deeper into their pockets and cough out an additional 1.5% of their gross earnings to the National Housing Development Fund, 8% VAT on all oil products, which inadvertently saw an increase in prices of basic commodities like food, transport and even internet services.
Moreover, commencing January 2019, in an attempt to expand the tax bracket, the taxman
plans to nab evasive small-scale traders and SMEs by introducing a presumptive tax that will be a requirement for business license renewal.
This could possibly mean that leaping into the new year, startup enterprises will not only have to grapple with increased costs of doing business but also a reduced purchasing power from buyers, which could mean the loss of business.
On the flipside, it is not all gloom and despair as the Global Doing Business 2018 statistics
ranks Kenya at an impressive position 61 out of 190 countries, and 4th in Africa. The rise in the rankings was driven by huge strides forward in four key categories: Starting a business, getting electricity, protecting minority investors and resolving insolvency.
Somewhat attributed to this positive shift, is the new legislative framework encapsulated in the Companies and Insolvency Acts of 2015. Changes in the Companies Act eased the process of incorporation and spared private companies from the stifling compliance requirements.
To read the rest of this article from B&M Issue 1, please download the FREE pdf or view it as a flipbook here.