US Ambassador Praises Finance Act 2023 as Gateway for American Companies in Kenya
Meg Whitman, the United States ambassador to Kenya, praised the Finance Act 2023 on Monday, June 3, noting that it was a gateway for American companies to enter the country.
Whitman remarked to GossipA2Z editor John Mbati during a celebration commemorating the 247th anniversary of U.S. independence at her residence on Kyuna Road that the Act contained several provisions assuring investors of a favorable investment climate.
She explained that many had overlooked the fact that the Act will allow the Kenyan economy to expand exponentially.
In addition, Whitman disclosed that the Act would ensure the adoption of a transparent tax system, thereby ensuring the safety of investors.
“It ensures (the Finance Act) a tax regime that is transparent and consistent, and that it will remain in place for some time, giving Americans the confidence to invest in the nation,” stated Whitman.
The ambassador emphasized the elimination of the one-third domestic equity requirement, which she noted had long prevented American companies like Amazon Web Services from expanding in Kenya.
“One of the most overlooked aspects of the Finance Act is the changes that this administration has made to the investment climate.
“A few examples include the elimination of the one-third domestic equity rule, which prevented companies like Amazon Web Services (AWS) from entering Kenya,” Whitman explained.
ALSO READ: Ruto’s Next Move: Options Post CAS Rejection
According to the ambassador, another positive aspect of the Act was the elimination of the export service tax. She stated that the tax discouraged American companies from outsourcing labor from Kenya.
She noted that its removal meant that consulting firms and other businesses would rush to outsource labor from Kenya.
“Before the elimination of export services tax, for instance, call centers, business outsourcing, and consulting firms were required to pay a tax when exporting services,” she continued.
Whitman cited the elimination of taxes on unrealized gains, particularly for startups, as one of the factors that would attract American investors to the nation.
“The next one would be the tax on unrealized gains for startups with less than a million dollars in revenue or less than eight years of existence. “For the startup, you had to pay taxes when it was acquired, but now you do not have to pay taxes until it is monetized,” she added.
Officials from Kenya who attended the event included Immigration Principal Secretary Gerald Bitok, Principal Secretary for Labour Geoffrey Kaituko, Prime Cabinet Secretary Musalia Mudavadi, and other Nairobi Ambassadors.
In response to a petition filed by Busia Senator Okiya Omtatah, High Court Judge Mugure Thande issued conservatory orders suspending the implementation of the Finance Act, 2023 ruling on June 30.
President William Ruto signed the Finance Bill 2023 into law on Thursday, June 22, following the National Assembly’s approval on Wednesday, June 21.
US Ambassador Praises Finance Act 2023 as Gateway for American Companies in Kenya
HEY READER. PLEASE SUPPORT THIS SITE BY CLICKING ADS. DON’T FORGET TO HIT THE NOTIFICATION BELL FOR MORE UPDATES AROUND THE GLOBE.
