Businesswomen decry high cost of trade
Ms Lorraine Mwangi Wanjiku inside her stall in Mombasa County. She says 2020 was the worst in business as she almost closed shop due to the Covid-19. Businesswomen now decry the high cost of taxation amidst the pandemic.
What you need to know:
- Kenyan businesswomen have decried the high cost of taxation amidst the Covid-19 pandemic.
- They said the cost is a major impediment to the recovery of the enterprises still reeling from the pandemic’s economic shock.
Kenyan businesswomen have decried the high cost of taxation amidst the Covid-19 pandemic, which has brought their enterprises to their knees.
Seneca East Africa, managing director, Ms Annette Kimitei said the high cost of doing business is a major impediment to the recovery of the enterprises still reeling from the pandemic’s economic shock.
“The remaining clients you have, you are trying to hold on to them, but they are unable to pay you on time and here are the escalating costs of doing business,” she said during a recent businesswomen’s webinar with ANC party leader Mr Musalia Mudavadi.
“We have a new law called the Data Protection Act and we have to pay Sh250,000 for a license to do CCTV configuration. It is so expensive (yet) we are trying to keep the few people we have retained,” she added in The Future of Women in Business virtual meeting.
The businesswoman in security business said she suffered a 25 per cent decline in revenues due to cancelled contracts, forcing her to cut down on her workforce.
Gender representation
“We had moved our gender representation (women employed as security officers) from five per cent in 2016 to 24 per cent in 2020.Those numbers reduced and it pains me,” she said.
Mr Mudavadi said although taxation is pivotal to a country’s development, it should be fair and well spread out to avoid overburdening one sector.
“Tax is necessary in any country, but tax must not be punitive and taxation must not be an obstacle to business,” he said.
“We need to review our taxi policy to make it friendlier,” he added.
Kenya National Chamber of Commerce and Industry, Women in Business, chairperson, Ms Maria Nato urged businesswomen to collaborate in pushing for reforms in the business sector.
“Solutions are with our leaders but we can determine the course of legislation,” she said.
She called for gender responsive policies and cross border structures to enable businesswomen break even in the market.
Last January, African Continental Free Trade Area agreement, which eliminates or lowers tariffs and non-tariff barriers, took effect.
Although Kenya is yet to establish a customs module corresponding to the pact, it is expected to establish modalities in the meanwhile to protect the exporters from bearing the cost of the defunct cross-border procedures and taxes.
