KENYA (COMMONWEALTH) – the world economy is not looking good right now as every country has been hit with inflation. There are of course people in the industries working around the clock to make sure that the citizens and parties who are struggling to keep their heads above water are getting the support they need.
But it seems that Safaricom a well know tele communication company in Kenya has figured out a way to not pay the increased tax rates in the country. Now it must be pointed out that this is very much with thin the tax laws and even the company and commercial laws of the country.
What Safari plans on doing is they plan are organization internally with the group of companies and with doing so they plan on removing M-pesa from the Tele communication business. Which then means that they could maybe avoid the full hit of the capital gain tax.
But of course, the course Telco stated that they will still continue to follow tax protocols and laws of the country as they continue to then set up M – Pesa as a new business with in the new structure of the company.
The CEO of Safaricom Peter Ndegwa stated that the tax reliefs are a welcome news and that they are able to take that relief and make good use of it too provide better services to the country. This also meant that the people of Kenya would benefit from this re organization of the company.
Mr Ndegwa also went on to state that the board is taking their time to review and give the needed approval for the transaction for the separation of the two companies but still goes to provides all the support that the management needs to get things moving.
It was evident that not everyone was ok with this split. There was some resistance initally from some higher ups in the country but once the plan was drawn out and explained to the company higher ups then there was agreement. Even in the business of tele communication everything depends on how its communicated.
