Delays in paying pending bills owed to contractors and suppliers have been cited as one of the major reasons for inadequate money in circulation across the country.
Businesspersons maintain that to enhance money circulation and revamp the country’s economy, the government must prioritise settling all pending bills owed next year.
Led by Perminus Kariuki, the proprietor of Nyota Njema Properties, the business fraternity claimed that the inadequacy of money circulating in the economy has been a massive blow to many businesses and start-ups.
Speaking at the Topspin Excellence Awards at a Nairobi Hotel on Monday, Kariuki noted that most businesses have been forced to downsize, leading to the loss of jobs for many Kenyans, as firms have adopted deliberate measures to remain afloat, including retrenchments.
“This year, many businesses have struggled to sustain themselves or even expand and grow because there’s less money in circulation. We are hoping that the government will make the right interventions next year, including paying all pending bills, so that enough money can circulate in our economy and for businesses to thrive,” Kariuki said.
Kariuki also called on the government to consider working closely with local companies and businesses instead of outsourcing services to multinationals, noting that this would spur growth and create massive job opportunities in the country.
He also quipped that Kenyans’ purchasing power has been significantly reduced due to a lack of money, thereby affecting investments in the country.
Imran Sokwala, the CEO of Precision Automotive, said that the private sector and especially the automotive industry should be supported by the government with friendlier laws and policies as well as tax reliefs, noting that the sector fetches the country billions of dollars in foreign exchange, thereby contributing to the country’s economic growth and stability.
The CEO noted that, with tax reliefs and other incentives, the sector will play a significant role in supporting the government’s job-creation agenda, creating more than 1 million jobs for Kenyans.
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“Creation of friendlier policies for the automotive industry will allow them to venture into new technologies, including electric vehicles (EVs), thereby contributing towards environmental conservation in the country. Again, we would want proper measures put in place to enhance and maintain the stability of the Kenyan shilling to reduce the cost of cars,” he averred.
Kennedy Wachira of Kendirect Imports echoed similar sentiments. This firm imports spare parts for luxury European vehicles, which said that the government should be considerate of taxes imposed on spare parts imports to allow businesses to blossom and contribute meaningfully to the country’s economic growth.
“Moving to the year 2026, we hope that the government will consider lowering some of the taxes imposed on the sector so that we can participate in nation-building and job creation. This year, the business has been wavering due to the current economic situation in our country and across the globe, but we anticipate a better year next year,” Wachira said.
Terry Muriuki of Baraka Real Estate reiterated that increased taxation in the real estate sector has undermined investment in the country, which, in turn, has caused ripple effects across the economy.
She singled out the increase in stamp duty in municipalities near urban areas from 2 per cent to 4 per cent, which has driven up the prices of land and houses in urban settings, making it difficult for ordinary Kenyans to own homes.
“The government should be considerate of the current economic situation in the country before introducing more taxes that will scare away investors who are pivotal in turning around the country’s economy,” he said.
Michael Mutua, the Kwale County Trade and Tourism Executive, said that although businesses faced a rough time this year, tourism activities in the country flourished, with an increase in foreign tourists.
Mutua noted that to further develop the tourism sector, both the national and county governments must inject more resources to streamline infrastructure and market new tourist attractions nationwideof .
By Fredrick Odiero
