Starting a New Business in Kenya

06/09/2017

Kenya revenue authority is currently suspending PIN numbers of directors with companies that are not compliant.

Effect:
If the director happens to be an employee in another company and is salaried ; PAYE cannot be processed and by extension the employer of the director is committing an illegality by paying any salary.
The director is generally considered not compliant and cannot access any government tenders where compliance is required.

To all Accountants;

Upload PAYE taxes early to see if your guys have been netted.

Good day

28/10/2016

Tax note Day:

Capital Gains Tax exemption on transfer of assets to wholly owned family companies

The Finance Act 2015 introduced Capital Gains Tax (‘CGT’) exemption on transfer of assets to immediate family members although the wording of the exemption was unclear. The Finance Act 2016 provides for clearer wording of the CGT exemption on transfer of assets to immediate family members.

The amend

The Finance Act 2016 has amended Para 6(2(h) of the Eighth Schedule to the ITA to provide that the following transfers of assets are not subject to CGT:
• Between spouses;
• Between former spouses in the case of a divorce or a bona fide separation agreement;
• To immediate family; or
• To a company wholly owned by spouses or a spouse and immediate family.

Who will be affected

Property owners and families and family businesses.

When
Effective from 9 June 2016

26/07/2016

Deemed Interest defined

The Finance Bill 2016 proposes to amend section 2 of the Income Tax Act by inserting the definition of deemed interest and deleting the same definition from section 16 of the Income Tax Act.

New definition

Deemed interest is now defined under Section 2 to mean ‘an amount of interest equal to the average ninety-one day treasury bill rate, deemed to be payable by a resident person in respect of any outstanding loan provided or secured by the non-resident, where such loan is provided free of interest.’

Parties to Watch out

All taxpayers receiving interest-free loans from non-resident related parties.

Effective from 9 June 2016.

04/06/2015

Some of the things we overlook..

Patent

Invention means a solution to a specific problem in the field of technology. It is; a new and useful art (whether producing a physical effect or not), process, machine, manufacture or composition of matter which is not obvious, or any new and useful improvement thereof which is not obvious, capable of being used or applied in trade or industry and includes an alleged invention. An invention may be, or may relate to, a product, or a process.

Patents Fuel progress

Where would the world be without inventions and innovations? At a backward stage of Industrial Development without doubt. Technological progress and economic strength in any modem nation, Kenya being no exception, depends greatly on the ability of its nationals to be creative and innovative and be aggressive in the promotion of trade both at home and abroad. Patents play a major role in the stimulation of inventive activity.

Patents offer inventors monopolies on their creations for specific periods, and thus provided incentives for research and development. Without the possibility of patent protection, many people might not take the risks or invest the time and money involved in devising and perfecting new products. For example, our society would have benefited greatly were we to have protected products such as the kiondo and even certain vaccines for livestock diseases produced in Kenya.

It is important that new products become available on the market continuously; otherwise without them the economy would quickly stagnate.

But patents do more than keep creative wheel spinning. They are also a means of technological exchange. Each patent document describes a new aspect of a technology in clear and specific terms and is available for anyone to read. Patents are made public specifically to promote the sharing of knowledge. As such they are vital resources for entrepreneurs, researchers, inventors, academics and others who need to keep up with development in their fields.

What can you Patent?

Yes: Inventions in any field of Technology. In general any device, substance, method or process can be patented

Examples: Any new or improved product or process in the following main sections of technology:


Human Necessities: Agriculture, foodstuff, to personal or domestic articles, health and amusement.
Performing operations and transporting: separating, mixing, shaping, printing and transporting.
Chemistry and metallurgy.
Textiles and paper. Fixed Construction: Building, earth moving mining.
Mechanical engineering, lighting, heating, weapons, blasting including engines, pumps and engineering in general
Physics: Instruments and nucleonic.
Electricity
There are exceptions. The following are not regarded as inventions and are excluded from patent protection: -

Discoveries or findings that are products or processes of nature where mankind has not participated in their creation (including, plants and microorganisms).

Scientific and mathematical methods and theories.
Schemes e.g. investment, methods of bookkeeping or insurance schemes.

Business methods e.g. credit or stock methods
Rules for playing games (The games equipment may be patentable).

Methods for treatment of human or animal body by surgery or therapy, as well as diagnostic methods; except products, in particular substances or compositions or apparatus for use in, any of those methods or;
Public Health related methods of use or uses of any molecule or other substances whatsoever used for the prevention or treatment of any disease which the Minister responsible for matters relating to health may designate as a serious health hazard or as a life threatening disease.

Mere presentation of information.
Non Functional details of shape, configuration, pattern or ornamentation

Note, also that some inventions are not patentable under the Industrial Property Act. They are: -
Plant varieties, but not parts thereof or products of biotechnological processes.

Inventions contrary to public order, morality, public health and safety, principles of humanity, and environmental conservation.

For more information

http://www.kipi.go.ke/index.php/patents

Kenya Industrial Property Institute is a government parastatal that administers Intellectual Property rights

04/06/2015

Ownership of copyright...?

The first ownership of a copyright work vests in the person who creates it. However, copyright like any other moveable property can be transferred through sale, licenses and testamentary disposition.
Under the Copyright Law;

In the case of two authors, the two shall be known as the joint authors of the work.

In the case of works created for hire or works created under a contract of employment, unless otherwise stated in a contract, the employer or the person who commissioned the work shall be the owner of the work.

In the case of a film, the principal director and the film producer are joint authors and first owners of the copyright (and the economic rights). Similar provisions to those referred to above, apply where the director is employed by someone.

In the case of a sound recording the author and first owner of copyright is the record producer, in the case of a broadcast, the broadcaster; and in the case of a published edition, the publisher.

Copyright in material produced by a Government department belongs to the Government.

25/11/2014

Every man is entitled if he can order his affairs so that the tax attaching under the appropriate Act is less than it would be otherwise.

06/11/2013

Itax system; Recently launched in the Country will highly improve Tax collection in the Country.
Most people are willing to pay tax the only deterrent is the ease.

Turnover tax system should cover even rental income as this remains highly untaxed due to being mostly in the informal sector. Most landlords cannot comprehensively compute their taxable income.

Operational ease is a huge motivator where compliance is concerned.

29/08/2013

The next big investment agenda in this country is agriculture.
The mindset has to change from the tie to the gumboot.

The new route for chama investment should be directed towards this end.

Lets take up this new frontier

24/07/2013

"Recognize that you can’t do all the work yourself, and give those people you hire a chance to succeed." - Kevin Eikenberry

24/05/2013

If you think you can offer it differently; Patent it before you speak it..

15/01/2013

Hi, what profitable venture can i start or join with KSH. 0.25 Million?

Help out, there is a jungle of ideas out there. The member who posted this question is employed and as such time consideration is necessary.