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{
"id": 1506828,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1506828/?format=api",
"text_counter": 332,
"type": "speech",
"speaker_name": "Aldai, UDA",
"speaker_title": "Hon. Marianne Kitany",
"speaker": null,
"content": ". That innovation is by our young people and if it is left unprotected, someone can steal it. In most cases, those innovations are taken up by big companies, thus leaving the young people with no support and nothing to hold on to. The objects of the Bill are to recognise, establish, develop and support start-ups. There is a growth plan from incubation to maturity, that is when they can compete with the other companies in the industry. It will also facilitate the provision of fiscal and non-fiscal support. This is an area which most start-ups look up to especially, for the Government support in the fiscal and non-fiscal areas. The Government has a lot of funding facilities that are available, but those start-ups do not benefit. For example, there are agencies like Kenya Industrial Estates (KIE), Kenya Development Corporation (KDC) and many others that offer Government funding. Those start- ups do not access funds at affordable rates. When they go to KIE, they are required to have collateral and yet, many young people do not have collateral. The only use phones to come up with technological innovations and their brains. That is not collateral that can be used. So, start-ups need to be given that kind of support. The Bill will also help in catalysing the growth of start-ups in Kenya. In other parts of the world like China and Vietnam, many start-ups have grown to become big businesses. We know that in Singapore, small start-ups have grown to become big companies. This is because they support young business entrepreneurs to grow their businesses. Even companies like Samsung, Apple and Microsoft, which manufacture phones, started in a university bedroom. Due to the support and favourable business environment, they grew to become the blue-chip companies that we know. The Bill will also enable the private sector to help start-ups. In the process, the private sectors will also get incentives. For example, there is programme that I watch on television called Shark Tank, which is produced in the United States of America (USA). In that program, entrepreneurs or business investors listen to ideas from the young people. Once they like the idea, they pick it and get incentives for supporting them. In any start-up, you require someone to hold your hand until you are strong enough to walk alone. The other issue is linking the start-ups to financial institutions. Currently, many of our banks require so many documents before they can give finances. They require a five-year bank statements and other things which start-up companies do not have. So, when this Bill is passed, the Government will create an environment where such financial institutions can waive some of those requirements, so as to allow start-ups to access the financial capital they require to grow their businesses. Other benefits in this Bill are labelling, incubation and acceleration of start-ups. We need to have an eligibility criterion. How to identify a start-up? What grants can be given to incubators? How to register a start-up? Who will be the registrar? We need a register of all the start-ups in the country. They also need support, coordination and technology transfer for them to access Government services. The other major and very salient feature in this Bill is Government support specifically, tax reliefs, Value Added Tax (VAT) and Income Tax refunds. This will ensure that start-ups do not feel the pain of paying taxes. Many young people do not want to formalise their businesses. This is because the moment they do so, the next day they find a taxman at the door telling them to pay Income Tax and VAT. If start-ups get tax reliefs for a certain period, they will be comfortable to run their businesses. We know the Government is giving tax reliefs to investors who are investing in the Export Processing Zones (EPZ) and Special Economic Zones Authority (SEZA) areas. Those reliefs and comforts that investors get can also be transferred"
}