LEASING ASSOCIATION OF KENYA
The Leasing Association of Kenya (LAK) is an umbrella association of asset finance and leasing practioners in Kenya. The origin of LAK was the East, Central & Southern Africa Leasing Association which was registered in Kenya in 2003. It was an association limited by guarantee but the name was later changed to the Leasing Association of Kenya in 2007 to better reflect the membership.
LAK’s mandate is to bring together all firms and individuals engaged in leasing with the aim of developing a sustainable Leasing industry in Kenya. This mandate is achieved via the following key activities:
- Creating awareness of leasing benefits in Kenya through topical seminars, workshops, conventions and research studies targeted at various stakeholders
- Lobbying and advocacy for regulatory reforms to improve/ increase use of leasing in the country
- Training and capacity building for lease professionals
- Self regulation and control of ethical behavior among industry players
- Enhancing Corporate Social Responsibility as part of the association’s efforts to contribute to the overall wellbeing of society beyond leasing
WHAT WE DO
In order to add value to the members as well as enhance the sustainability of the industry, LAK continuously seeks strategic partners. The Association of Kenya Credit Providers (AKCP) is one such partner whom LAK established a working relationship in 2013.
AKCP was registered in April 2013 to promote credit information sharing in Kenya by all credit providers while promoting consumer protection best practices. AKCP members include, but not limited to: commercial banks, microfinance institutions, Higher Education Loans Board, asset finance and leasing companies, SACCO’s, utility companies, insurance companies, hospitals, consumer retailers, etc.
To find out more about the AKCP, please visit http://ciskenya.co.ke
LAK was instrumental in driving regulatory reforms that improved lease operations in Kenya as follows:
- The definition of “Commercial” with respect to the type of leased cars was clarified in the Income Tax rules.
- The definition of “Assets” was clarified in the Income Tax rules with the exclusion of buildings and land.
- With Holding Tax on lease transactions were removed from a high of 15%.
- The need to have approval from Kenya Revenue Authoriy at end of lease terms was removed.
- The Clawback Provision in the event of non-conformity with the Income Tax Rules on Leasing was clarified to also include Lessor’s perspectives.
LAK contributed to the Review of Leasing Framework in Kenya where an External Consultant was engaged by the Government of Kenya. The recommendations presented can be found here.
Director, Special Projects
LAK Director, Membership