USAID and BrighterMonday backed “e-Biz Kwa Vijana” project, an e-commerce development initiative launched in 2023, has closed its first phase, with at least 2,000 young entrepreneurs and Micro, Small and Medium Enterprises (MSMEs) having benefited from free digital skills and E-commerce training.
The initiative, executed through e-Trade Alliance, has also on-boarded 632 MSMEs onto various e-commerce platforms to help them venture into the next phase of their business growth and opportunity journey.
It is designed to train up-to 1,000 young entrepreneurs aged between 18-35 years, in leveraging online trading and digital platforms also covered women entrepreneurs and people with disabilities.
“This is an indicator of the hunger for support and the strong entrepreneurial spirit in young people in Kenya today. We recognise and acknowledge the immense potential and power of E-Commerce to revolutionise the local entrepreneurial landscape by equipping young people with the necessary knowledge and tools to expand their market opportunities,” chief executive officer of BrighterMonday Chris Otundo, said on Thursday, June 13.
Among the key achievements of the project, were a 45 per cent attendance rate by women out of the 2,093 online learners in the E-Biz Kwa Vijana project, including 62 with disabilities, thus ensuring that all individuals, regardless of physical ability, have the opportunity to acquire valuable digital skills.
In addition to the online training, 248 learners attended physical training sessions, with a 77 per cent representation by women highlighting BrighterMonday’s commitment to gender inclusivity in the digital space.
Michael Mandu, the acting secretary for Trade who represented the Principal Secretary, State Department for Trade noted the steady growth of the E-Commerce sector in Kenya with Kenya established as a leader in digital trade within the African continent and globally.
“The combined revenues from the sector were projected to grow to USD2,928.00 bn in 2023 with a large share of this revenue being accounted for by the Small and Medium Enterprises as well as youth enterprises. This has contributed to job creation and employment opportunities for young people while also nurturing of digital talents in the country,” Said Mandu.
During the event participants reviewed the Kenya National E-Commerce Strategy launched in December 2023, as well as the recent tax proposals contained in the Finance Bill 2024 and which they said could have multifaceted effects on E-commerce adaptability and transparency in the country.
Among the proposals include, a proposed shift from the 1.5 per cent Digital Service Tax to a 6 per cent Significant Economic Presence (SEP) Tax, that E-Commerce players said could significantly impact profitability and operational costs of E-Commerce platforms.
This was the same regarding the 20 per cent Withholding Tax for non-residents and 5% for residents in the E-Commerce space which stakeholders said may present compliance challenges for smaller sellers, potentially hindering their participation in marketplaces.
“As stakeholders, we call for continuous engagement, knowledge-sharing, and collaboration with government and the relevant departments to address these concerns as the e-commerce ecosystem’s growth shall depend largely on how businesses and particularly young entrepreneurs adapt to this changing tax landscape,” said Otundo.
Similar sentiments were expressed regarding the proposed Data Protection Act amendment that seeks to exempt personal data disclosure for tax purposes, and which has raised consumer privacy concerns. Others include changes in Excise Duty, Eco Levy, and the motor Vehicle tax which portend a rise in costs for goods with E-commerce platforms facing tighter margins while prompting reduced spending.
