- The Daily Brief, by The Kenyan Wall Street
- Posts
- New rules for Kenyan startups
New rules for Kenyan startups
Kenya's #1 newsletter among business leaders & policy makers
Hello 👋🏿. It's Brian from The Kenyan Wall Street with the latest updates from the National Treasury, South Sudan, and the Capital Markets Authority (CMA).
First, we explore some of the provisions of the Startups Bill.
Top Stories
STARTUPS
A New Gov't leash…this time for startups
Startups
The Startups Bill, which had been delayed for over two years, has some interesting provisions that will affect the operations of innovators in Kenya.
The Leash ⛓️
The bill seeks to compel startups to allocate 15% of their expenses on research. Moreover, Startups which have been in existence for a period of more than 3 years risk being locked out from registration as a startup and admission into incubation programmes if they do not meet the criteria in the recently passed Startup Bill. The proposed law will also rein in startups’ corporate functions by mandating them to have headquarters in Kenya, not distribute profits, and be wholly owned by one or more Kenyans.
Incentives ⬆️
The Bill establishes a Startup Fund financed through government appropriations, grants, and donations. Moreover, some agencies have been mandated to supporting startups by developing a national incubation framework, fostering innovation, and creating linkages between universities and the business sector. The bill contains fiscal and non-fiscal incentives for startups, incubators, and investors.
🧐 Why is the government turning its eyes on startups?
Also Read ⏱️
Today's Poll
Is the Startups Bill going to benefit the innovation ecosystem or is it another Trojan horse for increased government control on businesses? |
Yesterday's Poll Results
Do you think the government's move to break up state entities will reduce budgetary deficits?
🟨🟨⬜️⬜️⬜️⬜️ Yes (27.27%)
🟩🟩🟩🟩🟩🟩 No (72.73%)
ECONOMY
“Stick to monetary policy!” Treasury to CBK
Treasury bonds and bills
Treasury has proposed that it take over the Central Bank of Kenya’s (CBK) role of selling government bonds and treasury bills as part of broader reforms to streamline debt operations while separating fiscal and monetary functions.
If the proposal is approved, the Public Debt Management Office (PDMO) will administer government securities in terms of setting up the borrowing calendar and pricing of the debt. The move, which seeks to further lower interest rates on government securities below the current 11%, in line with Treasury CS Mbadi’s agenda, is likely to face resistance from the CBK.
🤔 How to Get things Done
COMPANIES
Genghis Capital in the mud…CMA to the rescue
Genghis Capital
The creditor, Auswell Mashaba, has tasked Moran auctioneers to seize office assets belonging to Genghis Capital over US$2.7 million in unpaid debt. The investment firm’s efforts to stop the auction met dead ends on Monday when the High Court declined to certify Genghis’ application as urgent saying the court did not find it appropriate to certify it as such.
CENSORSHIP
Censorship
Major telcos in South Sudan shut down internet access for Facebook and TikTok because the government did not want its citizens to see the atrocities meted out on refugees in Wad Madani, a region in Sudan.
What does this mean from a global context? As governments strive to control social media platforms, Brian Nzomo interrogates if the new climate of internet censorship reflects benevolent concerns or reveals the fading influence of governments over information the masses consume…
Video of the Day
In this episode of Her Leadership, we feature Mbithe Muema, Business Development Leader at the Nairobi Securities Exchange. Mbithe shares how her upbringing and core values, with humility at the center, have shaped her as a leader.
What you missed
“25 years on 75% of people in Africa own phones, a revolution driven by entrepreneurs and not Governments. With this in mind, we cannot have so many young people without the energy of innovation. We need a massive push for Intra-African Exchange of youth to make the demographic dividend work”
What did you think of today’s newsletter?
Contact us if you have any inquiries or complaints here…
May the sun rise…