Doing Business in Kenya - RSM International

More documents

Recommendations

Info

NSSF provides the employee with a lump-sum retirement benefit. Historically, therate of return paid by the state is considerably less than that achieved by privateschemes, but participation is mandatory.National Hospital Insurance FundNational Hospital Insurance Fund (NHIF) is a state parastatal which provides limitedin-patient medical insurance cover at accredited health facilities to eligible membersfrom both the formal and informal sectors. For those in the formal sector, the employeris required to deduct from the salary and remit contributions for all employees, bothpermanent and casual. For those in the informal sector and retirees, membershipis open and voluntary. For registration, a copy of the Certificate of Incorporation /Registration, PIN, physical location and employee details are required.The lowest contribution starts from Shs 30 for an employee earning a monthlyincome of Shs 1,000 to a maximum contribution of Shs 320 applicable to an employeeearning a monthly income of Shs 15,000 and above. By concession, all contributionsare due by the 9th of the following month or the last working day before the 9thwhere this falls on a Saturday, Sunday or a public holiday.The medial benefits from the scheme in most cases can only cover a fraction ofthe actual medical costs. Hence, most companies provide employees with privatemedical insurance.Department of Industrial Training (DIT) LevyDIT levy is payable by every employer at Shs 50 per employee including anapprentice, indentured learner, other trainee, temporary, seasonal and casual worker.The payment is due by the end of every month. DIT is not applicable to organisationsdeducting and remitting catering levy.Pay As You Earn (PAYE)An employer is required to deduct PAYE from salary paid to an employee and remitthe same to KRA. This is covered under Personal Taxes (Section 4.3).Union DuesWhere employees are members of a trade union, the employer is required to deductand remit the monthly union dues to the respective union.5.5 Trade UnionThe Constitution of Kenya provides the right of freedom of association to everyperson in Kenya and specifically recognises the freedom of association to formor belong to trade unions or other associations for the protection of the person’sinterests. Under the Labour Relations Act, every employee has the right to join atrade union. In Kenya, the general practice is that management staff, opt of their ownvolition, not to join a trade union.68DOING BUSINESS IN KENYA
The Central Organisation of Trade Unions (COTU-K) is the sole national trade unioncenter in Kenya. COTU (K) was founded in 1965 upon dissolution of the KenyaFederation of Labour and the African Workers’ Congress. COTU (K) is registered andoperates within the provisions of the Labour Institutions Act (Chapter 12 of 2007)of the Laws of Kenya. Currently, COTU (K) has 36 registered and affiliated tradeunions in the country, and has a membership of about 1 million workers. Since itsformation in 1965, the workers umbrella body has endeavoured to create, developand maintain a comprehensive social framework for championing the rights ofworkers and advocating for humane and productive work, in conditions of freedom,equity, security and dignity.The affiliated trade unions are industrial based and the industries involved are:commercial, banking, metal works, bakeries and confectionaries, port workers,pilots, building and construction, chemical, engineering, game and hunting, localgovernment, fishermen, petrol and oil, plantations and agriculture, railway workers,scientific research, shipping and clearing, domestic and hotels, entertainment,betting, journalism, printing and publishing, sugar plantations, seamen, tailoring andtextile, transport, post and telecommunications.Any trade disputes are reported to the Minister for Labour for his reference anddecision. If any party to the dispute is aggrieved by the Minister’s decision, the partymay refer the matter to the Industrial Court in Kenya for further consideration.DOING BUSINESS IN KENYA69
Page 7:
2.0 General2.1 IntroductionKenya li
Page 13 and 14:
Kenya Tanzania Uganda Rwanda Burund
Page 15 and 16:
A huge chunk of the Act regulates m
Page 17 and 18: • Stamping of the Memorandum of A
Page 19 and 20: the Registrar within a statutory pe
Page 21: 3.2.3 Thin CapitalisationThin capit
Page 24 and 25: Where a business is carried on or e
Page 26 and 27: territory or domestic market. Motor
Page 28 and 29: • Unrealised foreign exchange los
Page 30 and 31: 4.2.6 Business with Non-Resident Pe
Page 32 and 33: Installments Due Date RateNon-Agric
Page 34 and 35: The current Personal Income Tax rat
Page 36 and 37: c) Housing• The higher of market
Page 38 and 39: partnership in which the husband or
Page 40 and 41: (1) East African Community partner
Page 42 and 43: Where the taxpayer still disputes w
Page 44 and 45: The VAT rates applicable in Kenya a
Page 46 and 47: 4.8.4 De-registration and Disposal
Page 48 and 49: • Payment is received for all or
Page 50 and 51: 4.8.7 Records, Invoices, Credit and
Page 52 and 53: A credit note should be serially nu
Page 54 and 55: However, where a motor vehicle or o
Page 56 and 57: Where there is no tax payable a ‘
Page 58 and 59: granted or is partly granted, the b
Page 60 and 61: • Airtime on cellular mobile phon
Page 62 and 63: Transit VisasThese are visas requir
Page 64 and 65: Class K is for persons who have an
Page 66 and 67: 5.3.2 WagesAlthough the Employment
Page 70 and 71: 6.0 ACCOUNTING6.1 Statutory Framewo
Page 72 and 73: 7.0 INTELLECTUAL PROPERTYRIGHTSKeny
Page 74 and 75: Years 1 Shs 1,000Year 2 Shs 1,500Ye
Page 76 and 77: 8.0 Listing Rules8.1 The Capital Ma
Page 78 and 79: • At the date of application, the
Page 80 and 81: 8.3 Payable FeesCompanies pay an in
Page 82 and 83: 9.0 Investing in Kenya9.1 General I
Page 84 and 85: 9.3 Foreign Ownership of Shares and
Page 86 and 87: Contact Details - RSM AshvirRSM Ash
Page 88 and 89: Appendix of Acronyms used in the Bo
Page 90: Notes90DOING BUSINESS IN KENYA
show all

Doing Business in Kenya - RSM International

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?