US hails Ruto over the Finance Act 2023
3 min read
US Ambassador Meg Whitman hails the Finance Act 2023 adding that it will motivate American investors to Kenya
US Ambassador Meg Whitman hails the Finance Act 2023 adding that it will motivate American investors to Kenya.
Meg Whitman, the American ambassador to Kenya, praised the Finance Act 2023 on Monday, June 3, saying it will open up opportunities for American businesses in the country.
When speaking at a gathering to honor the 247th anniversary of the United States’ Independence at her home along Kyuna Road, Whitman stated that the Act had various components that provided investors with assurances of a favorable investment environment.
She then added that many people have disregarded the fact that the Act will allow Kenya’s economy to grow enormously.
Whitman also disclosed that the Act would guarantee the adoption of an open tax system, which would guarantee investor protection in turn.
“It ensures (the Finance Act) a tax regime that is transparent and consistent and will stay in place for some period of time and give Americans safety on investing in the country,” Whitman stated.
The US ambassador highlighted the elimination of the one-third domestic equity which she noted had for a long time barred American companies like the Amazon Web Service from making inroads to Kenya.
“One of the most important elements of the Finance Act that has been overlooked is the changes that this administration made to the investment climate.
“A few examples are the elimination of the one-third domestic equity rule which kept companies like Amazon Web Services (AWS) from coming into Kenya,” noted Whitman.
Why court freed Mackenzie’s wife despite government opposition
Ruto playing ‘political gimmick’ with Kenyans in rejecting salary increase
Creation of Ruto’s 50 CAS unconstitutional, High Court rules
Muammar Gaddafi’s Son Hannibal hospitalized in ‘critical condition’ after hunger strike
Another positive aspect of the Act, according to the ambassador, was the removal of the export service Tax. She stated that American companies shied away from outsourcing labour from Kenya because of the tax.
Its removal, she noted, meant that consulting firms and other companies will rush to outsource labour from Kenya.
“The removal of export services tax, for example, call centres, business outsourcing and consulting firms had to pay a tax when they exported their services,” she added.
Whitman highlighted the removal of tax on unrealised gains especially for startups as one of the factors that would entice American investors into the country.
“The next one would be the tax on unrealized gains for startup companies those less than a million dollars or eight years old. For the startup, the meaning you got it you had to pay taxes, now you don’t have to pay taxes until it is monetized,” she added.
Kenyan officials who attended the event included Immigration Principal Secretary Gerald Bitok, the Principal Secretary for Labour Geoffrey Kaituko, Prime Cabinet Secretary Musalia Mudavadi, and other Ambassadors from Nairobi.
Also read,
Double blow to Kenyans as EPRA fails to effect changes to two fuel levies
UK offers cattle to Maasai people as reparations for injustices during colonialism
Ruto details on CNN how he defeated both Uhuru and Raila in 2022 general election
Kenya breaches statutory debt ceiling of KSh10trillion
Follow us
