Kenya's Business Troubles Push Companies Away.
Companies in Kenya say high taxes and power problems hurt their growth. They find it hard to make money when rules keep changing, and power costs rise.
The country's business numbers show less growth in late 2024. Production slowed to 2.3 percent between July and September. Sugar makers did well, but car makers and cement firms had a hard time.
Business leaders want clear rules. The Kenya Association of Manufacturers met on Wednesday. They said Kenya needs better business conditions to reach its big goal: making things to bring in 20 percent of Kenya's money by 2030.
"We want to add one million jobs," said Tobias Alando, who leads the group. "This needs everyone to work together and fix what stops growth."
Kenya's companies face many problems. Raw materials cost a lot, and cheaper goods come from other lands. Roads and power need work. Banks give few loans, and money rates change fast.
Counties ask for the same tax more than once. These hard times pushed big companies to leave Kenya. Some went to make things in Ethiopia and Egypt, where costs are lower. They send goods back to Kenya.
Big names like Procter & Gamble and Johnson & Johnson left Kenya, and others cut their work here. Mobius Motors, which made cars in Kenya, closed last year. They owed a lot of money and had tax fights with the government.
President William Ruto picked ten people in December to learn why companies leave Kenya. People buy less these days. The government takes more money from pay. Companies cut jobs as they try to stay open.
Business groups ask for help money to bring life back to companies. They say this could create more jobs and help people earn more.
New health care and house taxes take more from workers' pay, on top of old taxes. Almost half of what people earn goes to the government.
The group that speaks for companies that provide jobs says it's hard to keep up. Rules require workers to take home at least one-third of their base pay, but with all these taxes, that's becoming harder every day.
Companies in Kenya say high taxes and power problems hurt their growth. They find it hard to make money when rules keep changing, and power costs rise.
The country's business numbers show less growth in late 2024. Production slowed to 2.3 percent between July and September. Sugar makers did well, but car makers and cement firms had a hard time.
Business leaders want clear rules. The Kenya Association of Manufacturers met on Wednesday. They said Kenya needs better business conditions to reach its big goal: making things to bring in 20 percent of Kenya's money by 2030.
"We want to add one million jobs," said Tobias Alando, who leads the group. "This needs everyone to work together and fix what stops growth."
Kenya's companies face many problems. Raw materials cost a lot, and cheaper goods come from other lands. Roads and power need work. Banks give few loans, and money rates change fast.
Counties ask for the same tax more than once. These hard times pushed big companies to leave Kenya. Some went to make things in Ethiopia and Egypt, where costs are lower. They send goods back to Kenya.
Big names like Procter & Gamble and Johnson & Johnson left Kenya, and others cut their work here. Mobius Motors, which made cars in Kenya, closed last year. They owed a lot of money and had tax fights with the government.
President William Ruto picked ten people in December to learn why companies leave Kenya. People buy less these days. The government takes more money from pay. Companies cut jobs as they try to stay open.
Business groups ask for help money to bring life back to companies. They say this could create more jobs and help people earn more.
New health care and house taxes take more from workers' pay, on top of old taxes. Almost half of what people earn goes to the government.
The group that speaks for companies that provide jobs says it's hard to keep up. Rules require workers to take home at least one-third of their base pay, but with all these taxes, that's becoming harder every day.
