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The Kenya Private Sector Alliance (KEPSA) proudly announces a series of significant victories following their advocacy efforts, which have led to crucial amendments in the Finance Bill 2024.
These changes reflect the active public participation and collaboration with the three arms of government, highlighting KEPSA’s influential role in shaping economic policies.
Through concerted efforts with the National Assembly’s Finance and National Planning Committee, the Senate, and the President, KEPSA successfully influenced 10 out of the 16 amendments proposed by the private sector.
“We, as businesses, acknowledge and take seriously paying taxes as our civic duty. We know the country needs to grow economically and are doing our best to generate revenue. However, we also know that a predictable tax regime and focus on revenue generation policies in the short to long term will give the country both job opportunities and revenue rather than a focus on tax policies alone. We, therefore, applaud the National Assembly through the Finance and National Planning Committee, the Senate through the Speaker’s Roundtable held last week, and the President through the Presidential Roundtable, which we also held last week, for the opportunities to make our proposals leading to these gains,” said Ms. Carole Kariuki, KEPSA CEO.
Key Gains for KEPSA:
- Removal of VAT on Essential Goods and Services:
- Normal bread.
- Sugar transportation.
- Financial services and foreign exchange transactions.
- Taxation Adjustments:
- No increase in mobile money transfer fees.
- Removal of the 2.5 percent proposed Motor Vehicle Tax.
- Elimination of excise duty on vegetable oil.
- Eco Levy Adjustments:
- Eco Levy will apply only to imported finished products, exempting locally manufactured goods such as sanitary towels, diapers, phones, computers, tyres, and motorcycles.
- Alcoholic Beverages:
- Excise duty to be based on alcohol content rather than volume, promoting safer and more affordable alcoholic beverages.
- Pension Contributions:
- Tax exemption threshold for pension contributions increased from Ksh. 20,000 to Ksh. 30,000 per month.
- VAT Registration Threshold:
- Increase from Ksh. 5 million to Ksh. 8 million, easing the burden on small and medium businesses.
Additional Adjustments:
- Housing Fund and Social Health Insurance Levies:
- These will now be income tax-deductible, enhancing household disposable incomes.
- E-TIMS Responsibility:
- Withdrawal of the requirement for electronic invoicing (E-TIMS) from farmers and small businesses with a turnover below Ksh. 1 million.
KEPSA remains committed to continued engagement with the government to advocate for policies that foster a conducive business environment and enhance Kenya’s economic competitiveness. These adjustments to the Finance Bill 2024 are a testament to the effective collaboration between the private sector and the government.
