Wengi. My personal story . I do imports part time . There was cargo I was partnering with a personal friend from Ghana who lives in usa. Now to bring that container full of the that undisclosed merchandise, we were to pay 3.5 m exercise,vat and duty tax. In Ghana we were to pay 45,000 cedis= ksh1m and no other taxes. Guess where we took them? Cc @King Mswati IV , @blackguards [/USER ][USER=34053]@Panyaste and @Doltress dolt can relate to this
Kenyans love to complicate matters…iwe gava ama private sector. I remember going for a civil wedding hapo tao and you are sent to 3 or so people before the ceremony is done. Same happens in banks. Hawa watu huwa wamesomea MBA sijui what they are taught. The type of inefficiency we tolerate is crazy.
This has happened a lot. Dangote cried the same when he wanted to set up a cement plant. Everyone from MCAs to village chiefs to Mpigs and other tumbocrats waliona mbirrionaire ameingia town so they have to eat.
Most Kenyans have never run a manufacturing operation. Even a small one. It is extremely challenging manoeuvring daily operations to achieve efficiency required to outprice your competitors. Thus they choose an investment that is mainly hands off with a guaranteed return. Real estate. The one thing the government can help is insisting and enforcing Kenyan made products first especially those with raw materials that can be sourced locally. That forces plants to be set up locally.
I agree with you 100% on every part except one. I have been saying the same about these looters. If only they invested in a factory!!!The part I do not agree with is having a factory in Industrial Area. Zipelekwe hukooo!!!Makuyu, Nambale, Migori, Bamba, etc rather than further congesting Nairobi.
Currently EPZ pay ZERO corporate tax for the first 10 years then 25% after the ten years are over.
Under the proposed income tax bill, this will change and EPZs will be paying 10% in the first 10 years, 15 % in the second 10 years then in the thirtieth year, it will be at the standard 30%
SEZs will be treated the same way.
I don’t know about manufacturing industry but nitaongelea creative/film industry. Real estate is supposed to partner largely with filmmakers because of location purposes. But bado ukiwa unafanya reccon ya kushoot a scene and you approach these mbirrionaires in leafy surburbs depending on the director in charge, they usually are not straightforward. Look at SA. Ukitaka kushoot anything hata a mere music video al you need to do is employ a good percentage of locals. Huku kwetu kupewa hata a section of a road in town for a conmercial ni a Herculian task. Utazunguka mpaka uchoke. Hata ukishalipa Kanjo and all the concerned people bado sonko goons watataka za macho. It’s nauseating conducting businesses in Kenya, nchi ya kitu kidogo na greedy leaders.
Corporate tax is not even the problem. It is expected really. What i wanted to know was whether there was a country where one never had to get dozens of licenses to open up shop.
Greed and corruption is our undoing, and it has been ingrained deeply in our culture. Kila mtu akiona investor ameona opportunity ya kukulia za bwerere. WE are our own enemies.
generate profit.
manufacturing has good profits, but the capital is not secure, slight mistake or change in technology and you have useless expensive plant.
Personally I had secured two carwash machines and a 5000 liter tank from a friend and employed 12 youths. The owner of the machine wanted 1k pekee per week. Vijana na ujuaji yao, they decided to run the machines without oil. Finally moja ikavunja piston ingine rings. So saii vijana wajuaji hawana kazi they are just idle. Aki kenya