Economy

Startups marked for tax relief to spur innovation

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Nairobi Senator Johnson Sakaja addressing the press outside Parliament buildings on April 8, 2020. PHOTO | SILA KIPLAGAT | NMG

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Summary

  • The Startup Bill, 2020 recommends a range of incentives including fiscal and non-fiscal support as well as protection of intellectual property rights.
  • Lack of capital has been flagged as key put off for entrepreneurship in Kenya, especially among the youth eyeing to kick-off their first ventures.
  • Other incentives under the Bill include establishment of a credit guarantee scheme for startups and support in research and development.

Kenyan startups admitted to incubation hubs will pay less tax, if Parliament adopts proposals in a Bill which seeks to promote innovation among enterprises.

The Startup Bill, 2020 recommends a range of incentives including fiscal and non-fiscal support as well as protection of intellectual property rights.

Lack of capital has been flagged as key put off for entrepreneurship in Kenya, especially among the youth eyeing to kick-off their first ventures.

“The Bill seeks to provide a legislative framework that promotes an enabling environment for the establishment, development, conduct of business and regulation of startups,” said Nairobi Senator Johnson Sakaja who has sponsored the Bill.

Other incentives under the Bill include establishment of a credit guarantee scheme for startups and support in research and development.

Entities that qualify as incubation hubs include companies, non-governmental organisations and partnerships with facilities suitable to accommodate innovative startups.