1. Introduction
Kenya Private Sector Alliance (KEPSA) is a limited liability membership organisation registered in 2003 as the apex body of private sector in Kenya. KEPSA brings together the entire business community from all sectors of the economy under one umbrella, to engage and influence public policy in a single voice to ensure year on year improvement in the overall business environment.
With current over 500,000 direct and indirect members organised through Business Associations, corporates, multinationals, SMEs and start-ups, KEPSA is a key player in championing the interests of the Kenyan business community in trade, investment and industrial relations.
2. Public Private Partnership (PPD) during the COVID-19 pandemic
Before the first case of Covid-19 was reported in Kenya in March 2020, businesses had begun suffering supply chain disruptions due to linkages with major global markets in Europe, China, and other Asian countries that had imposed travel restrictions to contain spread of the virus. KEPSA swung into action and initiated a survey to determine the impact of the pandemic. The survey inspired the constitution of a Covid-19 Business Response Team, comprising key sector leaders, to craft an economic management framework.
The framework’s overriding focus was to protect small and medium-sized enterprises (SMEs), to safeguard livelihoods, prioritising health and safety of employees, communities, and healthcare workers, while ensuring supply chain continuity. The framework also sought to mobilise private sector resources, maintain high ethical standards and avoid moral hazards such as price spikes, and production or distribution of low-quality products. It also involved frequent dissemination of clear and accurate information, and promoting social stability.
Following robust engagement with the Government, we presented to President Uhuru Kenyatta, the Covid-19 strategic recommendations matrix on March 20, 2020 during the 11th Presidential Roundtable.
In his address to the nation on March 25, 2020, the President announced economic stimulus measures that included tax cuts (reduction of PAYE and 100 per cent relief for incomes below Ksh24,000, as well as reduction of VAT, corporate tax and turnover tax for SMEs); expedited settlement of pending bills and VAT refunds; lowered Central Bank Rate and Cash Reserve Ratio to inject more liquidity into the economy; and temporarily suspended listing of loan defaulters with Credit Reference Bureaus. An additional Ksh56.6 billion Economic Stimulus Package was announced to support most affected sectors, including establishing an SME Credit Guarantee Scheme.
KEPSA conducted two more surveys in April and May/ June 2020 to assess the impact of Covid-19 and track effectiveness […]