KEPSA Hosts 6th Senate Speakers Roundtable on Economic Recovery During and Post Covid-19

The Kenya Private Sector Alliance (KEPSA) held its 6th Senate Speakers’ Roundtable meeting in Naivasha where the business community and the Senate took stock of the achievements over the past 4 years.

Themed ‘Economic Recovery During and Post Covid-19: Strategies and Opportunities in Building a Better Future Together’, this was the 3rd series of Senate Speaker Roundtables under the 12^th Parliamentary cycle aimed at setting a legislative intervention agenda between KEPSA and the Senate aimed at boosting economic competitiveness for growth and job creation before the next general election.

Attended by over 100 participants, the round table reviewed progress on ongoing proposed reforms to support trade, investment attraction, and value chain development at the Counties as well as the challenges and priority legislative interventions needed to accelerate economic recovery.

“The pandemic brought new challenges as well as opportunities to re-engineer our businesses. Our focus shifted to supporting businesses to overcome the negative effects of the pandemic or turn the dice in their favor. We mobilized our members who made a significant impact such as financial contributions to the tune of close to Kes 3Billion”, said Carole Kariuki, CEO KEPSA.

Kariuki noted that the government adopted several private sector proposals underpinned by the KEPSA Economic Management Framework for Covid-19 Response, where the government extended support to the private sector to cushion businesses, re-energize the economy and protect jobs.

“The ten months-long economic stimulus measures that started in April 2020 included reduction of VAT from 16 to 14 percent, Corporation Tax from 30 to 25 percent, PAYE from 30 to 25 percent and 100 percent waiver for those earning less than 24,000, reduction of Turn-Over Tax from 3 to 1 percent, expedited payment of pending bills and VAT refunds, reduction of CBR from 8.25 to 7 percent and Cash Reserve Ratio from 5.25 to 4.25 percent to ease liquidity”, she said.

The government also allocated a Sh56.6 billion budget for different sectors under the President’s Eight Point Economic Stimulus Programme and began phased re-opening of the economy from July 2020 includes the resumption of domestic and international flights, reopening of schools, among others.

This year’s event follows on the 2019 roundtable which resolved to move beyond enactment of Bills into Laws, but to also ensure that the enacted laws enhance competitiveness and translate to jobs while promoting a green economy among other priorities.

Participants shared proposals to promote economic recovery through county-level Public-Private Partnerships especially in service delivery. Priority items in this year’s roundtable included how to spur economic recovery from the riveting effects of the Covid-19 pandemic such as the closure of businesses and staff layoffs due to the precipitated unfavorable business environment in the country.

While making his opening remarks Speaker of The Senate Hon. Sen. Kenneth Lusaka said business growth in the post-COVID-19 recovery era would depend on the rate of economic and sectoral transformation, linked to the development processes and structural transformation.

“From the onset of the pandemic most women and youth are now self-employed; for instance, women cooking from home, having buyers order online, and having motorbike riders deliver food in offices. Our nation’s challenges in the post-COVID-19 era loom large, so restoring livelihoods and growing incomes is a key element of the ‘build back better’ agenda”, He said.

Key resolutions of the 2019 roundtable included the need to review and analyze the rising cost of doing business in and across the counties, as well as consolidation of other indices in other sectors for a holistic review of the progress of reforms being undertaken in the country.

“Some of the most significant achievements realized over the past two years include the introduction of Bills in the Senate, that advance the ease of doing business such as the enactment of the County Outdoor Advertising Control Act. With advertising being a key revenue stream for Counties, the Act ensures there is a balance between commercial, environmental, and public safety considerations”, said Kariuki.

Over the period KEPSA has pushed for the development of eleven Bills in the Senate including The Startup Bill 2020 which provides for a framework that promotes the culture of innovative thinking and entrepreneurship.

“Considering the centrality of PPPs to the success of the Big Four, we are elated by the passage of the Public-Private Partnerships Bill (National Assembly Bills No. 6 of 2021) and its referral back to the National Assembly”. Concluded Kariuki.

About the Speakers Round Table
The Senate Speaker’s Roundtable is a high-level public-private dialogue platform between the business community and the Senate that facilitates a joint review of the policy and legislative environment in the country identifies crucial legislation to the private sector that needs to be reviewed or fast-tracked and addresses any gaps that require new legislative intervention based on the country’s and private sector development priorities.