President Uhuru Kenyatta has ordered an overhaul of the tax regime to create a better working environment for Micro, Small and Medium Enterprises (MSMEs).
Speaking during the Jamhuri Day celebrations on Thursday, Uhuru said that as things stand now, the high taxes make it hard for the enterprises to make any profit.
Therefore, he ordered the Kenya Revenue Authority (KRA) and National Treasury to look into the matter with immediate effect, during his speech at the Nyayo Stadium.
"Kenya’s economic growth figures have been impressive but the tax burden on SMEs has to be reduced so that a bigger margin of Kenyans can reap the benefits," said the head of state.
The president said that his leadership is committed to removing hindrances preventing Kenyan enterprises from thriving, hence the directive.
Uhuru said that his government will also eliminate any other factor affecting the enterprises.
“My Administration is focused on other salient factors that are holding back the potential of our enterprises; particularly concerning taxes and tax administration, reduction or where possible elimination of fees or charges levied by Government Agencies as well as the Private Sector,” he added.
The Head of State further announced his commitment to simplification of trade processes, elimination of bureaucracy and easier access to credit.