Ruto Announces New Economic Reforms to Boost Local Businesses
President William Ruto has unveiled new economic reforms aimed at supporting small and medium-sized enterprises (SMEs) across Kenya. The president emphasized the importance of empowering local entrepreneurs to stimulate the economy. He highlighted that these reforms will include tax reductions, better access to loans, and increased government support. Let’s dive into the details of what this means for the business community.
Government Plans to Strengthen SMEs
During a recent address, President Ruto stated that “small businesses are the backbone of our economy,” reaffirming his government’s commitment to providing favorable conditions for growth. The new policies focus on reducing bureaucratic red tape that often hinders SMEs and simplifying processes for starting and running businesses.
According to Treasury Cabinet Secretary Njuguna Ndung’u, the reforms will be rolled out in phases, beginning with a 15% tax relief for registered SMEs. The goal is to create a conducive environment for businesses to thrive, boosting job creation and economic resilience. “We are determined to ensure that local businesses have the capacity to compete both nationally and internationally,” Ndung’u said during a press briefing.
Backing Reforms with Financial Support
To further support these businesses, the government is partnering with local banks to provide low-interest loans to SMEs. Under the new plan, entrepreneurs will be able to access up to KSh 500,000 in capital, with flexible repayment terms. Central Bank Governor Kamau Thugge confirmed that this initiative will launch in November 2024, stating that “financial inclusion is key to sustainable economic growth.”
Conclusion
Economic reforms are essential for Kenya’s future prosperity. By introducing these measures, President Ruto is paving the way for a more dynamic and inclusive economy. For local businesses, these changes represent a significant opportunity to grow and compete on a larger scale.
Ruto Announces New Economic Reforms to Boost Local Businesses
