Lobby proposes monthly tax holidays to boost SMEs

The Kenya National Chamber of Commerce and Industry (KNCCI) officials in Trans Nzoia have appealed to the county government to introduce tax holidays to revive the economy.

KNCCI chairperson Titus Kilong'i said such initiatives and practical measures will ease the burden on struggling businesses.

Kilong'i said the key demand is the implementation of monthly tax holidays, specifically targeting small and medium-scale enterprises (SMEs).

"SMEs form the bedrock of our economy. Businessmen face tremendous challenges, and one month tax reprieve each month would offer them much-needed breathing space. It is an investment in their growth which ultimately benefits the entire county." Said Kilong'i.

While others may question whether tax holidays are viable or not, Kilong'i perceives the long-term benefits as justifiable even if it would mean an immediate drop in revenues collected.

"This is not about giving away some things for free," clarified Kilong'i. "We are sure that these tax breaks will encourage expansion to the companies, and investments and later on lead to high taxation forms in the future. It's an informed risk."

He said the proposition envisages temporarily closing off a central street like Kitale's bustling Kenyatta Street, to transform it into a vibrant marketplace.

The proposal envisages temporarily closing off a central street- in this case, Kitale's bustling Kenyatta Street- and converting it into a vibrant marketplace thereby bolstering the above two.

"The expo will give small traders a chance to directly display their products to customers without going through middlemen and enliven the business landscape," said Kilong'i. 

The Trans Nzoia county government has taken note of the KNCCI proposals and promised to consider them.

"We recognize that businesses play a central role in the development of our county," said County Minister for Trade and Investment, Joseph Omwamba. "We are committed to an enabling environment for the businesses to grow, and we will surely dissect these suggestions with an open mind."