Delays in paying pending bills owed to contractors and suppliers have been pointed out as one of the major reasons why there’s inadequate money in circulation across the country.
Businesspersons maintain that to enhance money circulation and revamp the country’s economy, the government must prioritize settling of all dues owed in pending bills next year.
Led by Perminus Kariuki, the proprietor of Nyota Njema Properties, the business fraternity claimed that inadequacy of money circulating in the economy has been a huge blow to many businesses and start-ups.
Speaking during the Topspin Excellence Awards in a Nairobi Hotel on Monday, Kariuki noted that most businesses have been forced to downsize leading to loss of jobs for many Kenyans as firms have been forced to adopt deliberate measures to remain afloat in business including retrenchments.
“This year many businesses have struggled to sustain themselves or even expand and grow because there’s less money in circulation. We are hoping that the government will make the right interventions next year including paying all pending bills so that enough money can circulate in our economy and for businesses to thrive,” Kariuki said.
He also quipped that Kenyans’ purchasing power have been significantly reduced due to lack of money thereby affecting investments in the country.
Imran Sokwala, the CEO Precision Automotive said that the private sector and especially the automotive industry should be supported by the government with friendlier laws and policies as well as tax reliefs, noting that the sector fetches the country billions of money in foreign exchange thereby contributing to the country’s economic growth and stability.
The CEO noted that with tax reliefs and other incentives, the sector will huge role in supplementing the government's agenda on job creation by creating more than 1 million jobs for Kenyans.
“Creation of friendlier policies for the automotive inductry will allow them venture into new technologies including the electric vehicles (EVs) thereby contributing towards environmental conservation in the country. Again we would want proper measures put in place to enhance and maintain stability of the Kenyan shilling so as to reduce the cost of cars,” he averred.
Similar sentiments were echoed by Kennedy Wachira of Kendirect Imports-a firm that imports spare parts for luxury European vehicles- who said that the government should be considerate on taxes imposed in spare parts imports to allow the businesses to blossom and contribute meaningfully to the country’s economic growth.
“Moving to the year 2026, we hope that the government will consider lowering some of the taxes imposed on the sector so that we can participate in nation building and job creation. This year, the business has been wavering due to the current economic situation in our country and across the globe but we anticipate a better year next year,” Wachira said.
Terry Muriuki of Baraka Real Estate reiterated that increased taxation in the real estate sector has undermined investments in the country which has in turn caused ripple effects in the economy.
She singled out the increment of stamp duty in municipalities close to urban areas from 2 per cent to 4 percent which has seen prices of land and houses in the urban setups skyrocket thereby making it difficult for ordinary Kenyans to own homes.
“The government should be considerate of the current economic situation in the country before introducing more taxes that will scare away investors who are pivotal in turning around the country’s economy,” he said.
Michael Mutua, the Kwale County Trade and Tourism Executive said that even though businesses faced a rough time this year, tourism activities in the country flourished with an increased number of foreign tourists.
Mutua noted that to further enhance the tourism sector, both the national and county governments must inject more resources to streamline infrastructure and market new attraction sites across the country.
