Small businesses get 3-year tax holiday if Raila's Azimio wins

Former Prime Minister Raila Odinga. [Jonah Onyango, Standard]

A three-year tax holiday awaits start-ups and micro and small enterprises (MSMEs) if former Prime Minister Raila Odinga forms the next government after the August 9 polls.

According to the Azimio-One Kenya manifesto, the holiday will be guaranteed once one registers with the Kenya Revenue Authority (KRA).

The coalition also pledges to make credit access for MSMEs easy and affordable.

Additionally, there will be a review to lower the tax burden on MSMEs and make it predictable, unlike the current scenario where taxes tend to be reviewed every financial year as the National Treasury seeks to fill the budget gap.

The manifesto also pledges to establish a framework to enhance the transfer of technology, including sub-contracting.

Mr Odinga's Azimio government will also incentivise working relationships including technology transfer and enhancement of trade between MSMEs and large manufacturing industries for mutual benefit.

He said the Micro and Small Enterprises Authority (MSMEA) will be straightened to implement all programmes relating to small businesses.

“(We'll) develop standards to support the improvement of the quality of MSMEs products to enable the players in the sector to be competitive for the market including government procurement,” reads the manifesto.

The Jua Kali sector will be boosted as well to promote the ‘Made in Kenya’ initiative.

Growing and supporting the MSME including Jua Kali sectors as drivers for the 'Made in Kenya' initiative noting as a leading industry in the provision of employment opportunities.

Most people in this sector are self-taught. To ensure their skills are recognised to give them an upper hand in the job market, the Azimio government will adopt the Recognition of Prior Learning Certification Programme to award certificates to artisans, craftsmen and technicians.

This is through the ‘Shahada la Jitihada’ programme.

“We will also encourage the signing of memorandum of understanding between Jua Kali associations and TVETs (Technical and Vocational Education and Training) to develop partnerships and incubation hubs,” the manifesto says.

Azimio seeks to support the growth of MSMEs, including the Jua Kali sector through improved productivity and efficiency to spearhead the ‘Made in Kenya’ products.

“Manufacturing shall also be the focal point for achieving efficiency and increased productivity by MSMEs, as well as the creative and sports industries.

"Likewise, manufacturing will be a user of MSME products,” it says.