It’s the role of every employer to understand the employee tax responsibilities they shoulder. Since employment tax is one of the most common costs businesses must pay when hiring employees, getting it right means remaining compliant with all local payroll laws and regulations.
Some of the most common types of employment taxes applicable in Kenya include:
- Pay As You Earn (PAYE)
- NITA Levy
- National Hospital Insurance Fund (NHIF)
- National Social Security Fund (NSSF)
- Affordable Housing Levy
Financial Restructuring
Several circumstances may affect a company’s ability to remain profitable. At times, it doesn’t matter how hard the financial and management teams may try to keep a business on track, there are many things that cannot be predicted. Markets naturally rise and dip, new technologies gain momentum almost overnight, and consumer wants and needs evolve with time. Every company must evolve with external factors in their environment, but sometimes drastic measures are necessary to get a company heading towards profitability gain. Therefore, financial restructuring remains the one viable option for struggling companies. It is a strategy for getting a company back on track financially.
Financial restructuring is not only for those companies that are struggling. Many healthy companies endeavor to restructure their business to proactively anticipate and avoid potential problem sources and to take advantage of opportunities to save money. A company may restructure to reallocate resources for a new campaign or product.
Restructuring is also necessary when companies merge with or acquire another company. Mergers and acquisitions can even be a means of financial restructuring. For instance, a company with a low debt-to-equity ratio may join with one that has a high ratio to restore balance.
Achieve your Financial Freedom with Cynet East Africa Consultancy
Financial restructuring isn’t an easy decision to arrive at as a company. In most cases, for restructuring to work, all interested parties must believe that financial restructuring will put them in a better position than if the company were to be put into immediate liquidation or a Formal Restructuring. You need a professional with the ideal expertise and prowess in the area to guide your organization through a step-by-step diagnosis towards achieving a successful financial restructuring. We will:
- Analyze your business and its prospects;
- Review the restructuring options;
- Assess the likely recovery of moneys owed to each class of stakeholder in the event of liquidation;
- Develop a restructuring plan;
- Develop a negotiation strategy that will ensure each stakeholder group agrees to a restructuring; and
- Identify new cash flow requirements and raising the required money.
All these options should be discussed with professionals who have extensive experience in this area. Not all these options will be right for you. Cynet will analyze your company’s specific financial situation and lay out the right options for you. We will do everything we can to keep your company profitable. We will customize a strategy based on your unique wants and needs.
Our teams of creative and dedicated problem solvers are single-mindedly focused on quickly and effectively putting you back on the path to growth. Leveraging our global firm’s full range of capabilities and deep sectoral experience, our professionals will create unique solutions to your problems, supported by some of the industry’s most innovative tools, enabling technologies and proven methodologies.
When your organization or investment is facing financial distress, you can count on Cynet to help you stabilize the situation, give you all your options for a holistic financial restructuring, and then agree and execute your plan.
