How CEOs plan to manage risks ahead of Finance Bill 2025

This was revealed during the Verto Kenya C-Level event that drew Chief Executive Officers (CEOs), Chief Financial Officers (CFOs) and senior executives to engage in high-level discussions on how businesses can adapt to tax policies to drive growth. 

Held at the Capital Club in Westlands, Nairobi County, the leaders emphasised how the discussions were timely, especially with the upcoming Finance Bill 2025 that will be unveiled in June. 

The bill, which mainly focuses on tax revenue mobilisation measures, elicited public uproar among Kenyans last year, who took to the streets to protest against tax hikes. This ultimately led to the withdrawal of the Finance Bill 2024. 

The leaders highlighted five key strategies to mitigating tax policies: Compliance, staying informed of tax changes, handling tax audits appropriately, advocacy and consulting a tax advisor. 

Kevin Ng'ang'a, Kenya's country manager for VertoFX, highlighted that business executives must actively participate in consultative forums and committees, such as public participation events, to voice their concerns. 

He emphasised the need for leaders to adjust their approach to advocacy to ensure it is done effectively. 

"The different approach people must take is to fight with their power. This is by going to public participation and working together to raise a voice. Currently, there's a lack of activism in the sector," Ng'ang'a pointed out. 

Eric Opondo, Finance Controller, KAPA, also shared Ng'ang'a sentiments and called for businesses to comply with the law. 

"In terms of the Kenya Revenue Authority (KRA), businesses should comply with the law. It is also important to engage experts on these matters," he said. 

Concerning how the government can mobilise revenue, Snehar Shah, CEO IX Africa, called for KRA to effectively integrate technology into all its services to seal any loopholes. He cited that this measure would also assist in widening the tax bracket. 

"How do we widen the tax bracket? It's through technology such as E-Tims. This needs to be taken to the next level," Shah pointed out. 

Further, VertoFX country manager Ng'ang'a appealed to the executives to consider how macroeconomic factors such as trade policies, global interest rates, global inflation and geopolitical events could influence the business industry. 

"Business leaders need to have global macros at the back of their minds, things which can damage a business on a collateral point of view," he said. 

"There's a lot more action through Advocacy that needs to be done differently. What can we do as business leaders to speak about these issues?" he posed.