Covid-19 has hit all businesses hard. The Kenyan president, Uhuru Kenyatta put forth a number of interventions for the parliament to consider. These interventions are geared towards providing relief for struggling Kenyan businesses.

What are some of the interventions suggested?

  • A 100% tax relief for persons earning a Gross Monthly income of up to Ksh. 24,000/
  • Reduction of income tax PAYE from a maximum of 30% to 25%.
  • Reduction of resident income tax to 25%.
  • Reduction of the Turnover Tax rates from $3 to 1% for all Micro, Small and Medium Enterprises.
  • Incorporation of additional 10B to elderly, orphans and other vulnerable members of society.
  • Temporary suspension of the listing on the Credit Reference Bureau (CRB) of persons, micro, small or medium or corporate entities, effective 1st April 2020.
  • The National Treasury shall cause an immediate reduction of VAT rate from 16% to 14% effective 1st April 2020.
  • All Ministries & Departments shall cause payments of at least 13B of the verified pending bills within 3 weeks from the date here thereof to improve the liquidity of the economy. The private sector is encouraged to clear outstanding payments within themselves within the same 3 week period.
  • KRA shall expedite the payment of all verified VAT refund claims amounting to 10B within 3 Weeks to improve cash flows for the business.
  • Mention of the lowering of the Central Bank rate to 7.25% from 8.25%
  • Lowering of the CRR to 4.25% from 5.25%
  • Flexibility requirements for loans that were performing from March 2, 2020, and payment periods extended or restructured due to this pandemic

However, the glacial pace of parliament in implementing the relief measures may not reach your business in time. Additionally, with the less than straightforward tradition of these projects, you have no guarantee that your business will qualify.

On the other hand, banks are apprehensive about funding businesses. This is because formerly profitable businesses can no longer provide irrefutable proof that they can repay. The uncertainty has left many businesses with nowhere to turn.

What can Hyaat Capital do to help?

We realize that at some point this funding will be available. You need to understand what this means for your business.

We provide financial advice, help you with business proposals and all you need to grab the opportunity when it shows up.

Additionally, if you need alternative funding, we can help you secure the funding you need to keep your business afloat.

Talk to us today.

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