Firms increase uptake of tax-free lunch

Manufacturers and commercial banks are looking to effect a Sh4,000 pay rise for employees through tax free lunch schemes in quest to boost productivity.

Digital lunch scheme provider, Apptivate Africa has reported increased interest for its mobile lunch delivery app, M-kula, largely from industries and lenders.

Workers under the scheme are entitled to Sh48,000 in tax-free meal allocations wired directly to their mobile wallet annually, translating to a tax-free pay rise of Sh4,000 per month.

“A number of companies especially in the manufacturing and banking sectors that were lax in early 2018 are now interested in exploring how we can help them,” said Apptivate Africa Chief Executive Neil Ribeiro.

Apptivate said improved business environment, investor confidence in 2018 and a growing need to create employee-employer emotional connection, will accelerate demand for mutually benefiting incentives like meal vouchers by companies in 2019.

“Employers are realising they need to provide more than a pay cheque to keep their teams motivated. Food is a basic human need, and a great way to get employees motivated and create an emotional connection between them and the company,” said Mr Ribeiro. 

The firm says the interest by manufacturers will accelerate momentum and boost the sector’s contribution to the economy.

Manufacturing sector’s contribution to gross domestic product has stagnated at about 10 per cent over the last few decades.

“We are ready to be part of the big role of re-awakening the sector in line with President Uhuru Kenyatta’s Big 4 Agenda on manufacturing,” said Ribeiro.

The Presidency has listed policy review for sector and incentives among priority areas to improve the manufacturing sector.