Taxes are scaring away investors, says chamber

A private sector institution has said that double taxation is scaring away investors from the counties,.

The Kenya National Chamber of Commerce and Industry said investors fear finance Bills by county governments will slow down the growth and expansion of small and medium size enterprises.

The chamber now wants finance Bills by the county governments abolished and the Kenya Revenue Authority be the sole tax collector under the national government.

“The finance Bills are killing devolution by hurting the investment and the market sector,” said Mr Laban Onditi, the chamber’s national vice chairman.

He regretted that the Bills had been behind the wrangles among the county governments and other stakeholders impacting negatively on the local economy.

“The finance Bills have triggered fear among most investors who are unwilling to put up businesses at the county level due to fears of heavy taxation,” said Mr Onditi, also director of Export Processing Zone Authority.

He said the chamber has introduced stringent requirements in issuing of trade licences to meet international standards.

“Plans are on to develop one stop shops for issuing of licences by the Kenya Investment Authority to save on time and resources, and woo investors to set up businesses in the country,” said Mr Onditi.

He asked county governments to include communities and different stakeholders in setting up business investments.

“Some counties are likely to stagnate in terms of development due to poor consultations with stakeholders.”

The chamber has partnered with Botanic University of China to promote agri-business, said the vice chairman.