Tuesday, December 5, 2023 –Entrepreneurship in Kenya is quickly sliding down due to fear of taxation. Research has indicated.
In a Tuesday December 5 report released by The Stanbic Bank Kenya Purchasing Managers Index PMI, the private sector remains the most hit with reduced activities.
“The performance of Kenya’s private sector started to decline in September, and the latest monthly reading is one of the weakest since the series began almost a decade ago,” the PMI indicated.
Unfavorable conditions led by high taxation makes key issues that are leading to poor business environment which the private sector is now running away from.
“Driving the downturn in operating conditions was another historic increase in business costs during November,” also read the report.
The PMI findings also noted that the ever-depreciating shilling which has now hit 153 against the world dollar as well as fuel cost was also a contributing factor in this problem.
This weakening of the Kenyan shilling has led to high-cost importation as businesses incur high production costs of their products.
Furthermore, many products have gone up due to high Petrol and Diesel costs that makes production and transportation of materials expensive.
Currently, many firms and businesses are firing workers so that to ease themselves from high operating costs and expenses.
Some businesses have also closed shop as some flee the country for greener pastures elsewhere even as the government claims it was on a positive economic trajectory.
President William Ruto, recently, announced that the economy was looking better than how he found it a year ago.
