Private sector (KEPSA) warns Ruto of looming job loss over finance bill 2023
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Kenya Private Sector Alliance (KEPSA) warns of looming 100K job losses over controversial proposed finance bill 2023
Kenya Private Sector Alliance (KEPSA) warns of looming 100K job losses over controversial proposed finance bill 2023.
The Kenya Private Sector Alliance (KEPSA) cautioned President William Ruto that if the Finance Bill 2023 is passed and put into effect in the upcoming fiscal year without changes, there will be impending mass layoffs in the sector.
KEPSA’s top officials spoke before the National Assembly Committee on Finance, which is seeking public feedback, and warned that business closures will result in the loss of 100,000 jobs.
Packaging, cement, and other small business companies would be impacted by the tax regimes in the Finance Bill 2023, claims KEPSA.
Anthony Mwangi, CEO of the Kenya Association of Manufacturers (KAM), also cautioned President Ruto from executing the Finance Bill 2023 in the absence of a necessary relief strategy.
The KAM CEO warned the committee members that double taxation would probably drive away international investors from the Kenyan market.
A Ksh150 billion loss would result from the widespread departure of investment partners.
Mwangi said that the current economic situation would not support international investors who were having trouble paying their taxes.
He pleaded with the National Assembly to put the Finance Bill 2023 on hold.
“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.
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“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 percent 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 the State House where he lobbied them to pass the Bill, indicating that it was key to helping his administration fulfill his campaign pledges.
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