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Business laws and regulations

Simple Alliance, Kenya Limited


Every other business environment would require order which is best achieved through laws and regulations put in place by the existing authorities. Kenya as a country has laws that govern the various industries that exist in its business field. As a business owner or an aspiring one it would be important that you have a clear understanding of the laws that touch on your field of operation to avoid brushing the wrong side of the law. It is important that you conduct your business with integrity as it helps a lot with success and growth. We shall look at the laws that apply to Kenyan field and categorise them

  1. 1.      Banking and Credit Laws

These are the laws that guide entrepreneurs on banking and lending. They protect t entrepreneur against any frauds that may end up to them losing money or getting exploited when they borrow from banks and other financial institutions. These laws include; Banking Act, Agricultural Development Corporation Act, Banking Act and Central Bank of Kenya Act, Central Bank of Kenya, Prudential Guidelines for Institutions Licensed under the Banking Act.

  1. 2.      Bankruptcy and Collateral Laws

The bankruptcy and collateral law contained under the Bankruptcy Act is a law that defines what defines bankruptcy and what steps should be taken by the creditor in the case of a debtor going bankrupt. This law is aimed at protecting the business owner by regulating the actions that financiers may want to take against them in case they lose their money. It also protects against financiers just getting from nowhere and declaring you bankrupt.

  1. 3.      Civil Procedure Codes

These laws dictate the procedures that are to be taken under the various situations that a business owner may find themselves in. they give guidelines whether for or against the business owner as clearly seen in the Civil Procedure Act. The Debts (Summary Recovery) Act outlines the steps to be taken in a business situation when recovering the money owned to someone.

  1. 4.      Commercial and Company Laws

These laws govern the practice of business in general and touch on aspects that deal with establishing a business model and structure. To a great extent they cover the overall business operations and tend to cover the other laws that touch on business but not solely crafted for business like the ones discussed earlier. These laws include; Industrial Property Act, 2001, Law of Contract Act, Limited Partnerships Act, Prevention of Fraud (Investments) Act, 1977, Companies Act, Brokers Act, Transfer of Businesses Act, Agricultural Development Corporation Act, African Re-insurance Corporation (Mandatory Re-insurance Cessions) Act, Registration of Business Names Act, Stamp Duty Act.

 

  1. 5.      Constitutions

The Constitution of Kenya is a document that holds all the regulations that govern the happenings in the country. It therefore by virtue of it touching on everything affects businesses to a great deal. The constitution protects business owners from any negative happenings they may face either from external sources or from fellow business owners. It also gives them an avenue through which they can present their grievances and get them handled.

  1. 6.      Labour Laws

They are laws that govern business owners as they go about hiring and any other activities they may get into in relation to the welfare of their employees. This are issues to do with contracts and remuneration of employees among others. The two prominent acts under this in Kenya are Employment Act and the Regulation of Wages and Conditions of Employment Act

  1. 7.      Land and Building Laws

There are several acts under this and they touch on those businesses that have a physical location. They govern the dues that a business owner has to pay in relation to their land and buildings. Among them are; Stamp Duty Act, Registered Land Act, Transfer of Property Act, 1882, Building Societies Act, Physical Planning Act,1996

  1. 8.      Securities Laws

These are laws that touch on business owners who invest in the stock market and they work to ensure that business owners’ investments are safe whether with the broker or at the Security Exchange and that they are not lied to. They include; Stock Traders Licensing Act, Stock Traders Licensing Rule, Prevention of Fraud (Investments) Act, 1977.

  1. 9.      Tax Laws and Trade Laws

These laws guide business owners on the dues expected of them as a result of a business establishment and touch differently on different types of business. Some apply across the board while others apply to specific businesses. They tell the business owner of the government’s expectation of them. Tax Laws include Income Tax (Allowances and Rates) Act, Income Tax Act, Value Added Tax Act and Subsidiary Legislation, Value Added Tax Act and Subsidiary Legislation (part 2), Customs and Excise Act, Stamp Duty Act. Trade Laws include, Agricultural Produce (Export) Act, Customs and Excise Act, Imports, Exports and Essential Supplies Act, Customs and Excise (1st Booklet) Act, Customs and Excise (2nd Booklet) Act.

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