Why Fair Tax Policy Matters: Julian Mitchell on Powering Kenya's Informal Sector

Julian Mitchell, CEO of 4G Capital, recently delivered a compelling speech addressing the critical intersection of tax policy and economic growth in Kenya. Speaking from the operational perspective of a fintech lender serving micro and small enterprises (MSMEs), Mitchell highlighted the significant impact of tax administration on the backbone of Kenya's economy.

Supporting MSMEs as Economic Drivers: 4G Capital provides crucial working capital to micro and small enterprises, including traders, "mama mbogas," and "boda riders," who power the Kenyan economy but often lack access to mainstream finance. The company has disbursed hundreds of millions of dollars, trained hundreds of thousands of customers, and significantly contributed to job creation, with approximately 70% of its customers being women.

Impact of Tax Uncertainty

Tax uncertainty deters both local and international investment, chokes business confidence, and undermines growth, consuming valuable management time and diverting capital.

Call for Predictability, Transparency, and Fairness

Unleashing Business for Development

Mitchell urged government and policymakers to recognise businesses as partners in addressing development challenges, learning from countries where lower corporate tax rates have encouraged investment and delivered government surpluses.

Partners in Kenya's Future

Mitchell concluded by emphasising 4G Capital's commitment to building Kenya's future, stressing that when businesses across Kenya grow, the nation grows.

Listen to the full speech:

For a comprehensive understanding of Julian Mitchell's address on aligning tax policy with national prosperity, you can watch the complete video here: https://youtu.be/7YStBR03YWM