The Kenya Private Sector Alliance (KEPSA), through its Public Finance Sector Board, has held a consultative forum with the Parliamentary Departmental Committee on Finance and National Planning to kick-start discussions on the Finance Bill 2025.
This is the first of a series of proactive engagements spearheaded by KEPSA to inform the development of a more pro-Kenyans and business-friendly bill, aligning with both government and private sector priorities.
Some of the regulatory and administrative reform issues presented to the committee include the Inflation Adjustment Formula, Tax Laws Amendment Act, 2024, Withholding Tax, Credit Adjustment Vouchers, Timelines for Objection Review, Alternative Dispute Resolution (ADR), Misalignment of the Value Added Tax (VAT), and the Turnover Tax (TOT) regime.
The Chairman of the National Assembly’s Departmental Committee on Finance and National Planning CPA Kuria Kimani, emphasized the mutual benefits of engagement between the committee and the private sector.
He stated that these interactions not only assist the private sector but also provide the committee with valuable insights into pain points, enabling proactive engagement before the Finance Bill 2025 discussions begin.
Further Kimani underscored the importance of striking a balance between promoting local manufacturing and maintaining healthy trade, recognizing that both are critical drivers of job creation and overall economic growth.
Speaking at the engagement, KEPSA CEO Carole Kariuki emphasized that private sector prosperity is dependent on stability and predictable tax regimes.
She highlighted that fiscal and taxation policies should serve as enablers of business growth, investment attraction, and economic transformation.
“While we recognize the government’s need to raise revenue and manage debt prudently, it is crucial that the private sector remains competitive, productive, and resilient in the face of fiscal adjustments. No country taxes itself into prosperity,” stressed Kariuki.
Concurrently, Dr. Jas Bedi, the Chairperson of KEPSA, called on stakeholders to focus on driving Kenya’s competitive advantage, outlining five essential drivers of competitiveness: streamlined trade policies, cost-effective utilities, lower logistics costs, skilled labour productivity, and affordable financing.
“If we address issues that drive competitiveness, we will be doing justice to Kenya’s economy,” he reiterated, noting that these would spur jobs and inclusive wealth creation for Kenyans, enhance governance and economic stability, encourage cutting-edge innovation and investment in competitive human capital, bridge social inequalities, and create a globally competitive business environment.
Meanwhile, the strong partnership between KEPSA and the National Assembly has delivered tangible results in the legislative processes.
Additionally, public participation in legislative processes has been firmly entrenched, ensuring that laws are more inclusive and beneficial to both businesses and the people of Kenya.
“The private sector, working with one voice, is key to ensuring alignment between fiscal policies that shape democracy and a conducive environment that allows businesses to thrive in Kenya and globally,” said Mathias Kamp, Country Director of the Konrad-Adenauer-Stiftung (KAS) Kenya, with whose support the forum was made possible.
Both the Committee and KEPSA asserted their commitment to a more inclusive dialogue approach, bringing on board other National Assembly Departmental Committees that directly have a role in shaping Kenya’s business environment.
The next engagement is scheduled for April 2025.
By Michael Omondi
