Industrialisation CS warns counties over excessive taxation

Mr Mohammed said for counties for flourish they must first lure local people to invest.

Sunday February 28 2016

Deputy President William Ruto (right) goes through the World Bank report on Ease of Doing Business after it was launched at Villa Rosa Kempinski Hotel in Nairobi.

Deputy President William Ruto (right) goes through the World Bank report on Ease of Doing Business after it was launched at Villa Rosa Kempinski Hotel in Nairobi. To the left is Industrialisation Cabinet Secretary Adan Mohammed (left) and IFC regional director Oumar Seydi. PHOTO | CHARLES KIMANI | DPPS 

By MAGATI OBEBO
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Industrialisation Cabinet Secretary Mr Adan Mohammed has cautioned counties against overtaxing businesses because it makes it harder for them to compete.

“Many businesses have been forced to close shop because of high taxes,” he told investors at the Kisii Entrepreneurship Summit that ended yesterday.

Mr Mohammed especially pointed out at tax imposed on traders ferrying goods through counties as one factor killing the spirit and dynamism of entrepreneurship.

“These levies are becoming exorbitant and burdensome for businesses. I urge for dialogue so that this issue is solved if we are to be supportive of the local businesses,” the CS said.

The CS said high taxes are a major disincentive to potential investors adding that traders will not set up ventures in environments that burden them with taxes.

Mr Mohammed said the government is keen on supporting business start-ups because they hold the key to ending poverty and unemployment.

“People with the dynamism to start businesses and employ others are but one of the raft of solutions that can help us a country to confront the challenges we face,” said Mr Mohammed.

The CS, who was representing the President at the summit said the government is making deliberate steps aimed at improving the local business environment for businesses to flourish.

Mr Mohammed said for counties for flourish they must first lure local people to invest.

“These are the people that understand the local political dynamics better and then the rest can follow,” said the CS.

Mr Mohammed said the government has initiated monthly dialogues between the government and the private sector to iron out issues that may affect their operations.

Germany Ambassador to Kenya Ms Jutta Frasch said her country will forge trade partnership between her country and Kisii County.

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