This archive report was first published on 9 May 2020.
Published on May 9, 2020, by Richard Ngatia, President of the Kenya National Chamber of Commerce and Industry.
As the world battles the Covid-19 pandemic, Kenya is no exception. The deadly virus has left a trail of devastation, claiming countless lives and disrupting socioeconomic activities. In this challenging time, it is imperative that we adhere to the health experts' guidelines to contain the spread of the disease.
The private sector is committed to playing its rightful role in achieving technological transfer, particularly in the medical field, through public-private partnerships and attracting foreign direct investments. This will enable the country to manufacture medical equipment for local consumption and the region, create jobs for the youth, and enhance research.
President Uhuru Kenyatta's decree for 100 per cent tax relief for workers earning a gross monthly income of up to Sh24,000, reduction of Pay As You Earn from 30 per cent to 25 per cent, reduction of resident income tax (corporation tax) from 30 per cent to 25 per cent, and the reduction of the turnover tax rate from the current three per cent to one per cent for all small enterprises are key incentives to stimulate businesses and cushion vulnerable Kenyans from the pandemic's aftershocks.
With more than 80 per cent of Kenya's working population relying on the private sector, it is crucial that we exercise collective responsibility to overcome the new realities of our times and safeguard our future. By upholding the health protocol guidelines outlined by the government, we can protect ourselves, our families, friends, and customers, while ensuring the sustainability of the current fragile economy.
As we navigate this challenging period, it is essential that we recognize and respect that our actions will either save or endanger lives. By exercising individual responsibility, we can flatten the curve, observe social distancing, demonstrate high-level personal hygiene, and engage only in essential movement.
According to the International Monetary Fund's World Economic Outlook projections for 2020, all five East African countries are predicted to register significant economic growth decline of up to one per cent. Globally, the world economy is expected to record a downturn and a contraction rate of up to three per cent.
However, there is a reprieve for Kenya's economy, with an anticipated growth rate of up to 6.1 per cent in 2021. This forecast offers a glimmer of hope for the country's economic recovery and growth.
