National Assembly Majority Leader Kimani Ichung’wah has unveiled a comprehensive package of legislative reforms aimed at stimulating economic growth and improving the business climate in Kenya.
Ichung’wah highlighted the significance of six key bills currently under consideration, which include amendments to public finance, tax procedures, and business and procurement laws. He called these reforms “critical for the continuity and resilience of the Kenyan economy.”
The proposed reforms consist of The Public Finance Management (Amendment) Bills No. 3 and No. 4, The Tax Procedures (Amendment) (No. 2) Bill, The Tax Laws (Amendment) Bill, The Public Procurement and Asset Disposal (Amendment) Bill, and The Business Laws (Amendment) Bill. These bills have emerged from extensive public consultations led by the Ministries of Finance and Trade.
Ichung’wah explained that feedback from citizens and business stakeholders was instrumental in shaping the final drafts of the bills. These reforms now aim to address long-standing challenges faced by local industries, with a particular focus on the manufacturing sector. He emphasized that the reforms are designed to improve tax management and protect local businesses from unfair competition.
“From improvements in tax management to safeguarding local businesses from external threats, these bills reflect the voices and interests of Kenyans,” Ichung’wah said. “The goal is to create a tax system that is efficient, fair, and reduces unnecessary burdens on enterprises that are critical to our nation’s economic growth.”
Ichung’wah also stressed that the reforms would help alleviate the strain caused by punitive tax arrears and penalties, which have proven to be a significant hurdle for many businesses. The proposed tax changes would allow businesses to operate without the constant fear of accumulating fines, creating a more conducive environment for economic growth.
The Majority Leader also addressed the ongoing influx of cheap imports, which has undermined the competitiveness of local manufacturers. “We have a duty to protect our industries from unfair competition and ensure that our manufacturing sector can grow sustainably,” he stated.
The legislative package introduces several incentives aimed at keeping manufacturers in Kenya. There are concerns that some companies are considering relocating to neighboring countries, which have created more favorable operating environments.
Ichung’wah emphasized that the Business Laws Amendment Bill includes essential incentives to retain manufacturers in Kenya, warning that failure to act could lead to the loss of businesses and significant economic setbacks.
Another crucial element of the proposed reforms is the Public Procurement and Asset Disposal (Amendment) Bill. Ichung’wah urged legislators to carefully review the bill, stressing its potential to streamline public procurement processes, reduce inefficiency, and combat misuse of funds.
To ensure Parliament is prepared for a thorough and informed debate, Ichung’wah announced plans for an internal briefing, or Kamukunji, once the substantive Speaker returns. This meeting will allow legislators to explore the bills in detail and understand the potential impacts of these reforms on the Kenyan economy.
“We want every member to be fully informed so they can participate in a thoughtful and robust debate on these critical issues,” Ichung’wah said.
