The Kenya National Chamber of Commerce and Industry (KNCCI) and the Ministry of Treasury and Economic Planning have joined forces to address pressing challenges facing Kenyan businesses.

A high-level delegation from KNCCI, led by President Dr. Erick Rutto, accompanied by the Group Director of Capacity Development at the Africa Guarantee Fund (AGF), Mr. Patrick Lumumba met with Cabinet Secretary John Mbadi to discuss critical issues, including pending bills, taxation, and government procurement. CS Mbadi acknowledged the significant burden of unpaid bills, amounting to a staggering KES 664 billion, which is hindering business growth. To alleviate this, the government plans to implement a new economic stimulus package that will prioritize clearing these outstanding payments.

Additionally, the government aims to streamline procurement processes by setting a deadline of April each year for the completion of all procurement activities. This will help ensure timely payments and reduce the financial strain on businesses.

To further support businesses, the government is considering capping PAYE taxes at a more manageable level. This measure is expected to improve cash flow and enhance the overall financial health of enterprises.

Both KNCCI and the Ministry of Treasury have committed to strengthening their partnership. A technical team will be formed to monitor the business environment and provide recommendations for policy improvements.

“This collaboration is crucial to ensuring the sustainable growth of Kenyan businesses,” said Dr. Rutto. “By working together, we can create a thriving economy and improve the livelihoods of Kenyans.”

The meeting concluded with a renewed commitment to addressing the challenges faced by businesses and fostering a more conducive business environment in Kenya. Also present were KNCCI National Directors – Ken Onditi, MBS, Lucy Muchoki (Partnerships and Programs), and Zainab Mohammed (Women in Business).