Doing business in Kenya: updates regarding COVID-19

Nieuwsbericht | 04-06-2020 | 15:37

Update 4 June 2020

• The Kenya Revenue Authority (KRA) has begun paying out Sh.10 billion in Value Added Tax refunds following a presidential directive and release of funds by the National Treasury. In a statement, the Commissioner for Domestic Taxes said that only those businesses entities that have had their refunds claims verified in line with procedures will receive payments. For more information see this news item.
• Following the amendments to the VAT Act, 2013, by the Finance Act, 2019, clarifying that VAT is applicable to supplies made through a digital marketplace, the Kenya Revenue Authority would like to inform members of the public that the draft VALUE ADDED TAX (DIGITAL MARKETPLACE SUPPLY) REGULATIONS, 2020 have been developed. KRA invites companies to send in their comments on the draft before 15 June - Here
• Team Europe, of which the Netherlands is part, are providing a broad package of health and social support measures for the most vulnerable Kenyans in informal settlements and across the country, through a mix of emergency response and longer-term support - see press release.
• World Bank reports on impact of corona on trade and market opportunities in their biannual Africa’s Pulse report - see article.
• TradeMark East Africa has unveiled a Sh2.1 billion emergency fund to "urgently support East Africa and the Horn of Africa to make ports, borders, and critical supply chains safe to trade". See the following media article for more information.
• The Kenya Flower Council estimates that it will take a year for the sector to recover; exports in May rose to 65% from 20% in April and are projected to be at 80% by end of 2020.
• Foreign-based airlines have resumed flying to Kenya as demand for fresh produce rises, although air cargo capacity is insufficient and costs remain high – see media article.
• 267 persons from 20 different EU countries were repatriated to Amsterdam on 28/05/2020 through efforts from EKN and EU in Kenya.
• The Ministry of Tourism and Wildlife has established a 17-member National Tourism and Hospitality Protocols Taskforce to develop protocols and guidelines in response to COVID-19 pandemic and to support tourism operations as a result thereof  – see news article here.

Further information and useful links

Below we provide an overview of useful websites based on the type of questions we receive. In case you have suggestions for important and useful additions to this list, kindly share them with us by sending us an email, nai-lnv@minbuza.nl.

• For Dutch entrepreneurs that are doing business in African countries, the Netherlands Enterprise Agency made an overview of useful information in Dutch.
• A number of frequently asked questions for entrepreneurs are provided by the Netherlands Chamber of Commerce in collaboration with the Netherlands Enterprise Agency here.
• The European Commission’s response to the COVID-19 pandemic includes a number of restrictions to transport, which can be found on the website of the European Commission.
• The Kenya Private Sector Alliance has opened a 24-hour call center and information portal for businesses. You can find more information on their website.
• This website gives an overview of information provided by the Government of Kenya on COVID-19 related measures, created by the Netherlands Embassy.
• Please find details and ananalysis of the changes contained Tax Law Amendments Act of 25 April 2020 by Price Waterhouse Coopers here. As well as an analysis on the proposed Finance Bill, which was published on 5 May 2020 here: https://pwc.to/3cwVd2Z.
• The EU delegation in Kenya has published a factsheet on available funding opportunities to leverage investments by the private sector in Kenya. You can find the factsheet here. Find information on additional support by the EU to bolster food security here:  https://bit.ly/2XcNCAu
• The Kenya Ports Authority extends free storage period for import and export containers. The extension is valid for 90 days from 18 May 2020 and is subject to review thereafter depending on the business dynamics. Find details here: https://bit.ly/3g7mR9b
• Kindly find the Kenya Gazette Supplement no. 44 with the Pandemic Response and Management Bill 2020 via this link – The bill is currently going through parliament and has a number of proposals on social economic impact including employment contracts. MMAN advocates published an overview with the highlights of this proposed Bill here.

Events

Due to the COVID-19, many of the upcoming events have been rescheduled. As soon as new dates have been confirmed we will share them in our agenda.

COVID-19 in the Netherlands

For questions regarding travel restriction for the Netherlands, travelling abroad and visas, have a look at information from the Netherlands government here.
More general information about COVID-19 in the Netherlands can be found here.

Important note

Owing to changing nature of the COVID pandemic, the current situation and government measures in place are continuously evolving. Please continue to update yourself on the must current state of affairs, including by verifying information with the relevant business associations or your local partner.

Together we will get through these tough times. Stay safe

Questions for the agriculture department can be addressed directly to nai-lnv@minbuza.nl. Questions on general trade can be direct to nai-ea@minbuza.nl. For any other questions for the Embassy, this website links to the general contact information of the Netherlands Embassy in Nairobi.
For the latest updates follow us on twitter on @NLAgiKenya and the Netherlands Embassy on @NLinKenya and Facebook.