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Debt Management in Kenya

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Debt Management in Kenya
Taxation and debtors
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In order to keep current customers and attract new ones, most companies find it necessary to offer credit.  Debtors represent the extension of credit on an open account by a firm to its customers.   Accounts receivable management begins with the decision on whether or not to grant credit. The total amount of receivables outstanding at any given time is determined by:

 

The average collection period which depends on;

  • Credit standards which is the maximum risk of acceptable credit accounts
  • Credit period which is the length of time for which credit is granted
  • Discount given for early payments
  • The firm’s collection policy.


We at Laxia Africa will work with you to determine the best policy to manage your debtors.

 

get in touch with us: + 254 735 679 308 | 020 2400 366 | This e-mail address is being protected from spambots. You need JavaScript enabled to view it | www.laxiaafrica.com



Taxation and Debtors

Under the income tax act in Kenya, there are two types of debts that give rise to saving of cash flow by reducing taxes i.e. we have general bad debts and specific bad debts. Under the Value added tax act, the value added tax paid to the government and the same is not received from the customers is refundable after fulfilling certain simple conditions.
What are you waiting for let us help you safe cash flow without evading paying your taxes.

get in touch with us: + 254 735 679 308 | 020 2400 366 | This e-mail address is being protected from spambots. You need JavaScript enabled to view it | www.laxiaafrica.com