Nairobi, Kenya, Feb 27 – Kenyan businesses are grappling with rising taxation and operational costs, threatening their expansion and sustainability.
Spenza Limited, a maize meal and animal feed milling company, has urged the government to introduce stimulus packages to ease the financial burden on enterprises.
Speaking during a press briefing, Spenza Limited’s Commercial Director, Nahash Ndegwa, said surging raw material prices and higher importation costs have hurt the company’s competitiveness.
“The rising cost of raw materials and imports is affecting our market position. We urge the government and stakeholders to find ways to support businesses like Spenza Limited,” Ndegwa said.
Tax burden hurting businesses and employees
Ndegwa identified taxation as a major obstacle to business growth, adding that it has also impacted employees’ take-home pay.
“Workers are constantly questioning their shrinking pay slips, and we struggle to explain the deductions,” he noted.
He urged the government to consider tax relief measures for businesses and employees to boost disposable income and stimulate economic activity.
“If taxes are lowered, people will have more money to spend, which will help businesses thrive,” he said.
County levies and licensing challenges
Ndegwa also decried multiple county levies, which increase operational costs for businesses operating across different regions.
“Every county demands revenue, even when you are not a resident. These extra costs make expansion difficult,” he stated.
Despite these challenges, Spenza Limited remains optimistic about expanding its operations across Kenya.
Founded in 2009 by Mr. Muriuki in Kirinyaga County, the company established a modern milling facility in 2019 and is now focused on strengthening its presence in new markets.
“We are celebrating three years of rapid growth and are eager to expand further,” Ndegwa said.
Shrinking pay slips amid new tax deductions
Kenyan workers have been losing more of their earnings due to recent government tax reforms, including Social Health Authority (SHA) contributions, higher NSSF rates, and the Housing Levy.
Employers are also struggling to maintain competitive wages while complying with rising statutory contributions.
With businesses under financial pressure and workers earning less, stakeholders are calling for urgent policy interventions to address the economic strain.
