Coastal Entrepreneurs Want Tax and Policy Harmonization to Spur Economic Growth

By Mbungu Harrison

Emails, thecoastnewspaper@gmail.com

Young entrepreneurs and startups in Kenya’s coast region are calling for the harmonization of taxes and policies saying current disjointed frameworks within the 47 counties are stifling economic growth and especially so, blue economy.

Sote Hub, a leading business incubator based in the region, has raised concerns over cross-county levies that continue to burden youth-led small and medium businesses (SMEs).

According to the organisation such levies hinder movement, inflate operational costs, and discourage entrepreneurship of youths under 35.

Speaking in Mombasa County, Sote Hub executive director David Otieno said the call for harmonisation at county-level policies making process would create a more conducive environment for entrepreneurs and their businesses.

“The biggest challenge has been unfriendly policies and taxes across counties. If this can be addressed, I believe that the region can attract more investments, create jobs, and stimulate economic development,” he said.

Sote Hub is supporting over 1,100 startups and SMEs involved in fishing, farming, and other blue economy ventures. Some of these businesses have grown significantly, with positive ripple effects in their communities.

The director cites challenges such as limited access to technology, markets, funding, and the lack of formalisation of business ideas as major barriers for young people.

“Sote Hub, that has deeply embedded roots at the coastal region is committed to empowering young entrepreneurs in the Coast Region, but we need a supportive policy environment to achieve our goals.”

During a recent media engagement in the county, Sote highlighted successful youth-led businesses stressing the importance of harmonised operational processes or systems.

“By harmonizing policies and taxes, we can create a level playing field for startups to compete and grow.”

He noted that the logistical and financial barriers caused by fragmented regulations was hampering socio-economic growth.

“If a trader is transporting fish products from Lamu to Kwale or vice-versa, they encounter a lot of unrealistic levies, permits and taxes that deplete income and act as deterrent to many a SMEs traders. This must be addressed immediately!”

Among the many beneficiaries of Sote Hub’s programs is Faith Mwende, founder of Sea Ventures Kenya, a startup that produces animal feeds from recycled fish waste.

Currently, she employs seven young people and can expand if the county tariffs are harmonised and seamless across county boundaries.

“By creating a more favorable business environment, the Coast Region can attract more investments, create jobs, and stimulate economic growth,” she said noting that Sote Hub’s support helped her create job opportunities in Mombasa.

Her brand, Zuri Feeds, creates sustainable organic animal feeds and fertilizers, thus, offering a viable model for recycling and blue economy innovation.

Another entrepreneur, Hope Mwanake, co-founder of Inscorp, echoed the need for broader support from county and national governments.

She is known for her environmental innovations, including building homes from recycled plastic bottles and running clean water projects for women in Kilifi.

“More support from local governments and stakeholders is key to uplift livelihoods in the remote grassroots,” she said.

Dennis Okangi, founder and executive director of Kuza Freezers, shared his experience of working with small-scale fishers and highlighted the urgent need to address post-harvest losses.

His business focuses on cold storage solutions to help fish traders reduce spoilage and improve profitability.

Over the past four years, Sote Hub has graduated hundreds of startups and facilitated employment or opportunities to youth.

Its programs include business incubation, entrepreneurship training, access to resources, and dedicated co-working spaces.

As the Coast region continues to navigate its economic development journey, the organisation is looking forward to the Blue Economy Innovation and Investment Summit 2025 to be held in Mombasa.

The summit is expected to connect young entrepreneurs with banks, investors, innovators, and markets.

The push for tax and policy harmonization is seen as a timely intervention that could unlock untapped potential in the region’s youth-led businesses and spur inclusive economic growth.