Doing business in Kenya: updates regarding COVID-19

Nieuwsbericht | 06-11-2020 | 10:40

Update 06 November 2020

• On the 4^th of November 2020 President Uhuru Kenyatta announced in his Presidential Address:
  • The Nationwide curfew from 22:00 to 04:00hrs is extended up to 3rd January, 2021.
  • The closing time for restaurants and eateries has been amended from 10pm to 9pm.
  • All political gatherings are banned for the next 60 days.

• Kenyan fresh flowers will use sea transport as an alternative to air transport to reach international markets – see this article in the Kenyan Wall Street.
• Kenya’s exports to Tanzania for six months between March and August reduced by KES 1.8 billion (appx USD 18 million) in the wake of the Covid-19 pandemic and exported goods worth KES 14.68 billion, down from KES 16.49 billion in a similar period last year, according to a report by the East African Business Council (EABC).
• Revenues raised by ministries and State agencies in the year ended June fell by Sh41.7 billion compared to the previous year, new Treasury data shows, highlighting the adverse effects of COVID-19– see this article in the Business Daily.
• A report by rating agency firm Fitch Solutions says the region will witness limited benefit from global supply chain diversification brought about by Covid-19 in the next five years– see this article in the Star.
• Rising food costs have pushed Kenya’s October Inflation to 4.84%, up from 4.25% in September - see this article in the Kenyan Wall street.
• Farmers in Kenya can now use their farm produce as collateral to secure credit from eight commercial banks through the Warehouse Receipt System (WRS) – see more in this article from KBC news.
• President Kenyatta unveiled a several policy interventions Saturday aimed at fast tracking the national rollout of the Universal Health Coverage (UHC) pillar of the Big 4 Agenda – see this article in the Capital.
• [Dutch] De vaststellingsperiode voor de tegemoetkoming sierteelt en onderdelen voedingstuinbouw en de tegemoetkoming fritesaardappeltelers is verlengd. Vaststellen kan tot en met 30 november 2020. See more here.
• A Kickstart voucher is available for internationally active companies in the Netherlands. With this voucher an external advisor can be hired to support your company to reduce the impact of Covid-19 on your company. See more 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 COVID-19 includes a number of restrictions to transport, which can be found on this 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, including the consolidated private sector protocols on maintaining health and safety after reopening of the economy. For more information see here.

• This website gives an overview of information provided by the Government of Kenya on COVID-19 related measures, created by the Netherlands Embassy.

• The Ministry of Industrialization, Trade and Enterprise Development has published Guidelines for Business operations during COVID-19. You can find the guideline here. The Government of Kenya has also published the attached document on government guidelines on COVID-19 measures in offices. This is especially useful for companies seeking audience with the government offices.

• Price Waterhouse Coopers (PWC) published an analysis on the impact of the gazette notice to importers/exporters. You can also find an analysis of the changes contained Tax Law Amendments Act (25 April 2020) by PWC here. As well as an analysis on the proposed Finance Bill (5 May 2020) see this website.

• The Kenya Civil Aviation Authority released protocols for air travel operations during the COVID-19 pandemic. For more information see this attachment.

• 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 this draft - value added tax (digital marketplace supply) regulations, 2020 have been developed.

• 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 and on the support measures of for vulnerable Kenyans here.
• The Kenya Ports Authority public notice on the use of inland container depots in Nairobi and Naivasha. Find more details in this attachment.

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.