Kenya’s treasury to rise petrol VAT, taking Sh57 per litre
The Treasury in Kenya will implement a rise in value added tax (VAT) on petrol that will see it take Sh57.57 (US$0.57) for every litre.
The tax increase will be introduced to Nairobi on 1 September, and will increase the price of the fuel to Sh131.93 ($1.31) per litre.
Kenya’s Treasury has set a target of generating Sh70bn ($695.3mn) from the increase of petrol VAT.
The International Monetary Fund (IMF) proposed the rise in payment, which will increase the government’s share of the cost of a litre of petrol to 44%.
Organisations such as the Kenya Private Sector Alliance (KEPSA), the Motorists Association of Kenya, and the Central Organisation of Trade Unions have warned of the rise in costs of the fuel following the implementation of the VAT price increase.
The institutions have expressed their concerns regarding the price rise and its effect on the nation’s economic growth, rather than generating the set Sh70bn.
Prior to the rise in VAT to be introduced at the end of this week, the country’s government already had several taxes regarding fuel, including a road maintenance levy, petroleum development levy, petroleum regulatory levy and railway development levy.
5 minutes with... Janthana Kaenprakhamroy, CEO, Tapoly
Founder and CEO of award-winning insurtech firm Tapoly, Janthana Kaenprakhamroy heads up Europe’s first on-demand insurance platform for the gig economy, winning industry awards, innovating in the digital insurance space, and leading with inclusivity.
Here, Business Chief talks to Janthana about her leadership style and skills.
What do you do, in a nutshell?
I’m founder and CEO of Tapoly, a digital MGA providing a full stack of commercial lines insurance specifically for SMEs and freelancers, as well as a SaaS solution to connect insurers with their distribution partners. We build bespoke, end-to-end platforms encompassing the whole customer journey, but can also integrate our APIs within existing systems. We were proud to win Insurance Provider of the Year at the British Small Business Awards 2018 and receive silver in the Insurtech category at the Efma & Accenture Innovation in Insurance Awards 2019.
How would you describe your leadership style?
I try to be as inclusive a leader as possible. I’m committed to creating space for everyone to shine. Many of the roles at Tapoly are performed by women and I speak at industry events to encourage more people to get involved in insurance/insurtech. Similarly, I always try to maintain a growth mindset. I think it’s important to retain values to support learning and development, like reliability, working hard and punctuality.
What’s the best leadership advice you’ve received?
Build your network and seek advice. As a leader, you need smart people around you to help you grow your business. It’s not about personally being the best, but being able to find resources and get help where needed.
How do you see leadership changing in a COVID world?
I think the pandemic has proven the importance of inclusive leadership so that everyone feels supported and valued. It’s also shown the importance of being flexible as a leader. We’ve had to remain adaptable to continue delivering high levels of customer service. This flexibility has also been important when supporting employees as everyone has had individual pressures to deal with during this time. Leaders should continue to embed this flexibility within their organisations moving forward.
They say ‘from every crisis comes opportunity’, what opportunities do you see?
The past year has been challenging, but it has also proven the importance of digital transformation in insurance. When working from home was required, it was much harder for insurers to adjust who had not embedded technology within their operating processes because they did not have data stored in the cloud and it caused communication delays with concerned customers at a time when this communication should have been a priority, which ultimately impacts the level of customer satisfaction. This demonstrates the importance of what we are trying to achieve at Tapoly in driving digitalisation in insurance and making communication between insurers and distribution partners seamless.
What advice would you give to your younger self just starting out in the industry?
Start sooner, don’t be afraid to take (calculated) risks and make sure you raise enough money to get you through the initial seed stage.