Nairobi: The Kenya Private Sector Alliance (KEPSA), through its Public Finance Sector Board, has initiated a consultative forum with the Parliamentary Departmental Committee on Finance and National Planning to begin discussions on the Finance Bill 2025. This marks the start of a series of engagements led by KEPSA, aimed at developing a bill that is favorable to Kenyans and business-friendly, aligning with both government and private sector priorities.
According to Kenya News Agency, the discussions centered around various regulatory and administrative reform issues. These 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 noted that these interactions provide valuable insights into pain points, enabling proactive engagement before the Finance Bill 2025 discussions commence. Kimani also highlighted the importance of maintaining a balance between promoting local manufacturing and healthy trade, acknowledging their critical roles in job creation and economic growth.
KEPSA CEO Carole Kariuki, speaking at the engagement, stressed the dependence of private sector prosperity on stability and predictable tax regimes. She pointed out that fiscal and taxation policies should facilitate business growth, investment attraction, and economic transformation. Kariuki underscored the need for the private sector to remain competitive and resilient amid fiscal adjustments, reminding stakeholders that no country can tax itself into prosperity.
Dr. Jas Bedi, Chairperson of KEPSA, urged stakeholders to focus on enhancing Kenya's competitive advantage. He outlined five essential drivers of competitiveness: streamlined trade policies, cost-effective utilities, lower logistics costs, skilled labor productivity, and affordable financing. Bedi emphasized that addressing these issues would spur job creation, inclusive wealth creation, governance enhancement, economic stability, and foster a globally competitive business environment.
The partnership between KEPSA and the National Assembly has already yielded tangible results in legislative processes. Public participation in these processes has been firmly embedded, ensuring laws are inclusive and beneficial to both businesses and the Kenyan populace. Mathias Kamp, Country Director of the Konrad-Adenauer-Stiftung (KAS) Kenya, noted the importance of the private sector speaking with one voice to align fiscal policies with a conducive business environment.
Both the Committee and KEPSA reiterated their commitment to an inclusive dialogue approach, involving other National Assembly Departmental Committees that play a role in shaping Kenya's business landscape.