The government has been urged to consider waiving licence fees for small and Medium Enterprises in 2021 due to the tough economic times caused by Covid-19.
This is one of the economic interventions proposed in a meeting with the Kenya Private Sector Alliance chaired by Interior CS Fred Matiang'i on Thursday.
This comes after CBK governor Patrick Njoroge on Thursday projected at least 75 per cent of SMEs are facing closure by end of June due to lack of funds.
Stakeholders discussed prevailing effects of the global pandemic on the country's economy including estimated impact on jobs, by sector, government restrictions to ease, for promoting economic activity, private sector's workplace measures and protocols to maintain safety among other pressing topics.
They proposed public sector landlords - parastatals- waive commercial rents for tenants who are affected for 2020 due to the global pandemic.
Since the first case of Coronavirus was reported in Kenya, on March 13, the economy has taken a beating with most key sectors reporting low or nil business.
This is was further exhilarated by measures put in place to mitigate the spread of the virus, among them the closure of bars, restaurants, and eateries, and the 7pm–5am daily curfew which commenced on March 27.
The stakeholders have also agreed to create a business continuity plan to ensure continued provision of government services.
In order to boost SMEs so that more young people are employed to ensure economy recovery, the government has to ensure a sustained economic stimulus package.
The state has to expand and extend transfers—both cash and in-kind, especially for vulnerable groups.
The government has also been urged to provide tax relief for people and businesses who can’t afford to pay.
This year's GDP growth has been projected to slow to about 2.3 per cent from 5.4 per cent in 2019. Overall, inflation is expected to remain within the target range in the near term.
During a post-MPC briefing on Thursday, CBK governor Patrick Njoroge said there is an urgent need to cushion them as they contribute hugely to the country's employment and GDP.
