No More Mandatory eTIMS for Small Business as Plans to Privatise Uhuru Park Are Made Public

𝐖𝐞𝐝𝐧𝐞𝐬𝐝𝐚𝐲, 𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫 𝟒, 𝟐𝟎𝟐𝟒
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The Business Daily reports that the National Assembly’s Finance and Planning Committee has passed an amendment that will spare small businesses from mandatory eTIMs invoices. At the moment, businesses are required to generate electronic invoices for all transactions, but starting January 2025, small businesses, those with annual sales that are below Ksh5 million, may instead need only to maintain a record of their transactions. This adjustment is designed to reduce the compliance cost and address challenges like technology adoption among small traders. These businesses will not need to manage stock or use complex invoicing tools. Instead, they will simply provide visibility of transactions when needed. The eTIMS rollout has already onboarded many larger VAT-registered businesses. However, compliance among smaller firms remains low, prompting the need for this tailored approach to increase compliance and reduce tax evasion.

Nairobi Governor Johnson Sakaja has approved plans to revamp Uhuru and Central Parks to enhance public use and sustainability. In a report by The Star, the county plans to lease park spaces to attract private investment, generate sustainable revenue, and improve public amenities. Sakaja outlined plans for new recreational facilities, eateries, and event spaces while prioritising ecological conservation. These parks, central to Nairobi’s identity, underwent a Ksh1.18 billion renovation and are now open for daily public access. Sakaja emphasised the county's commitment to balancing revenue generation with preserving the parks' environmental and recreational roles.

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The National Assembly’s Finance and Planning Committee has made amendments to the Tax Laws (Amendment) Bill, limiting the Kenya Revenue Authority’s (KRA) access to trade secrets during tax audits, as reported by the Business Daily. The committee proposed amending the law to restrict KRA to reviewing financial transactions and tax compliance data, protecting sensitive corporate information. Businesses raised concerns that unrestricted access could expose trade secrets, such as manufacturing techniques and client data, to misuse or leaks. This move aligns with fears among manufacturers that such access could lead to unfair competition or confidentiality breaches.

In a report by The Star, the National Treasury has cited high taxes on salaries, steep lending rates, and unpaid government bills as key factors behind the lack of disposable income for many Kenyans despite economic improvements. Speaking at the FinAccess Survey 2024 launch, Treasury CS John Mbadi acknowledged that Pay-As-You-Earn taxes, which take up 8% of salaries, are a significant burden. He pledged to propose easing these taxes as the budget deficit narrows from Ksh900 billion to a projected Ksh760 billion next financial year. Mbadi also urged banks to reduce lending rates to make credit more accessible for businesses, emphasising the need to support economic recovery.

The government recently launched a recruitment drive targeting 20,000 job placements abroad, including in the Middle East, Europe, Canada, and Australia. However, as reported by The Standard, Kenyans seeking these opportunities face significant financial hurdles, such as paying processing fees ranging from Ksh70,000 to Ksh300,000 for air tickets, medical checks, and other documents. Job seekers have raised concerns over transparency, with some alleging potential scams by recruitment agencies. Labour CS Alfred Mutua assured applicants of a fair process, warning rogue agencies against exploitation. Despite optimism for well-paying jobs, the high costs have deterred many, sparking calls for government support to reduce these fees.