Columnists

VAT Act will undermine the economy

Former permanent secretary, Ministry of Information and Communication, Bitange Ndemo. Photo/FILE
Former permanent secretary, Ministry of Information and Communication, Bitange Ndemo. Photo/FILE 

The New VAT Act is causing untold damage to the economy.

At a Masters in Entrepreneurship class at the University of Nairobi’s Business School, where I have just paired my graduate students with Digital Opportunity Trust (DOT) youth entrepreneurs to nurture ideas, we are waking up to the harsh realities of the new Act.

Peterson Macharia an apprentice at DOT and a nascent poultry farmer from Nyeri is narrating his experience.

Prior to the Act, his profit margins were 30 per cent but today he says “is down to less than 15 per cent”.