The Kenya Revenue Authority is holding some Kshs 6 billion in Value Added Tax refunds meant to have been paid the private sector.

The Kenya Private Sector Alliance - KEPSA now says the long delay in releasing the refund is making investors and business people in the country, incur heavy expenditure as they look for other sources of credit to finance their operations leading to the high cost of doing business.

Speaking at a Nairobi hotel during meeting between the Parliamentary Committee on Finance, Trade and Planning and the Kenya Private Sector Alliance - KEPSA, the CEO of the Kenya Flower Council Jane Ngige said the Kshs 40 billion horticulture industry is in dire straits as the Kenya Revenue Authority - KRA continues to hold some Kshs 2 billion in value added tax - VAT refunds to the horticulture sector.

Ngige urged the Parliamentary Committee on Finance, Trade and Planning to intervene and put a check on the exchequer to release the funds to the private sector.

Committee Chairman, Chris Okemo urged KRA to streamline the refunds and help to stabilize operations in the private sector in order to spur the much needed growth. KEPSA appealed to Parliament to pass the laws governing the business sector so as to make Kenya an attractive destination for investment.

The Alliance said it would support the Proceeds of Crime and Anti-Money Laundering Bill currently in its second reading in the house.

They however are objecting to the introduction of the Price Control Bill of 2009 which they say could undermine investor confidence and growth of the economy.

KEPSA also urged the Committee to discuss with government on the need to urgently introduce to the House pending Bills that affect businesses.

They include the Companies Bill, Insolvency Bill, Limited Partnerships Bill, Investments Bill and Business Regulatory Bill.