The Kenya Private Sector Alliance (KEPSA) warned President William Ruto of looming mass layoffs in the sector if the Finance Bill 2023 will be adopted and implemented in the next financial year without amendments.
Appearing before the National Assembly Committee on Finance, which is gathering public opinion, KEPSA top officials warned that 100,000 jobs would be lost due to business closure.
According to KEPSA, packaging, cement and other small business enterprises would be affected by tax regimes contained in the Finance Bill 2023.
Kenya Association of Manufacturers (KAM) Chief Executive Officer (CEO) Anthony Mwangi also cautioned President Ruto against implementing the Finance Bill 2023 without having a requisite relief plan.
The KAM CEO told the committee members that foreign investors would likely leave the Kenyan market due to double taxation. The mass exodus of investment partners would lead to a Ksh150 billion loss.
In his argument, Mwangi maintained that the business environment would not favour foreign investors struggling to honour their tax obligations. He thus implored the National Assembly to shelve the Finance Bill 2023.
"As much as we want to protect the local manufacturing, doing this is like we are just handing over the market to other people, including Egyptians, Tanzanians and Ugandans," KAM CEO stated.
"The impact has already started being felt because people who are doing packaging are making orders from elsewhere. Ladies and gentlemen, do not do what you are about to do. Do not sign this Bill it will kill the packaging industry," he insisted.
The CEO also called on the government to delay the National Housing Development Fund rollout to allow the development of a mechanism for implementation. In the plan, Ruto's administration intends to impose a 3 per cent levy on all workers to support the affordable housing programme.
Martin Chomba, Chairperson of the Petroleum Association of Kenya, also cautioned against the adoption of the Finance Bill. Chomba argued that the energy sector is grappling with high electricity and fuel charges.
Despite complaints from different industry players, President Ruto is keen to pass the Finance Bill. On Tuesday, May 23, Ruto hosted Kenya Kwanza members at State House.
During the meeting, Ruto lobbied them to pass the Bill, indicating that it was key to helping his administration fulfil his campaign pledges.
