NAIROBI, Kenya, Oct 21 –Youth owned enterprises in the country will enjoy a 7-year tax break if a proposal by the Building Bridges Initiative report sails through.
To achieve this, the report seeks to amend the Micro and Small Enterprises Act, 2012, to further pave way establishment of business incubation centres across the country.
The centres will be providing business advisory services which will include among other things how to access capital and Government contracts.
” Further, the Authority will register and certify enterprises owned by young people, women, and people with disabilities,” the report says.
In the proposed amendments, such an SME should have a turnover of less than Sh5 million, be tax compliant and in its structure of management, there should be no public officer.
How is one expected to benefit from this?
An eligible person will be required to apply for registration to the Registrar.
“The Registrar shall, within seven days of receiving an application undersection 28A consider the application and any further information provided by the applicant
and may—(a) register an enterprise as one owned by youth, women or persons with disabilities; and (b) reject the application with reasons,” reads the BBI report which was handed over to President Uhuru Kenyatta at Kisii State Lodge on Wednesday.
All this will be oversighted by the Micro and Small Enterprises Authority.
The authority will among other things facilitate enterprises owned by youth, women and persons with disabilities to participate in government procurement opportunities.
The authority will be led by a Chairperson, who will be appointed by the President.
President Uhuru Kenyatta is expected to launch the report next week on Monday, paving way for a robust debate on a myriad of thematic areas that will culminate into a referendum.
He received the report alongside former Prime Minister Raila Odinga today at the new Kisii State Lodge and urged Kenyans to carefully read the report so as to make informed choices.
The president touted the document as a road map to a more cohesive, progressive and equal Kenya.
“Let us read it as individual citizens because it is about your life, the life of your children and your children, children,” the President emphasized.
The Head of State cautioned the political class against trivializing the document and encouraged them to show statesmanship by constructively discussing proposals contained in the document.