Kenya: President Kenyatta Signs Vat, Paye Relief Plan in Newly Amended Laws

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President Kenyatta Signs Tax Laws

Given the urgency of the matter at hand, we expect that the enactment of the relevant legislation will be expedited. The coronavirus (COVID-19) presents an alarming health and economic crisis for Kenya and the world. Governments and businesses are responding to the risks and uncertainties arising from the virus in various ways on a daily basis . A last-minute supreme court hearing on the eve of the re-run poll, of petitions challenging the legality of the second election, was scrapped when only two judges turned up, raising fears the bench may have been compromised. The bodyguard of the deputy chief justice was shot by unknown gunmen the night before. Odinga accused the government of being behind the killings, which followed at least five deaths on Friday as police tried to disperse opposition supporters.

Following a failed attempt to exit Ghana in 2021, Vodafone is again hoping to offload its assets in the West African country, having agreed on … However, Ghana’s regulator, the National Communications Authority, has turned down the companies’ request to seal the deal. Singapore-based cross-border payments provider Thunes is in “advanced talks” with Africa’s largest bank, Standard Bank, to extend its coverage … On the continent, Thunes senior vice-president for Africa Sandra Yao tells The Africa Report. They would need to deposit the money in escrow if the tax tribunal makes a ruling in favour of the tax authority, but before appealing the decision. Experts predict the proposal will be contentious and will most likely end up in litigation if it passes in Parliament.

President Kenyatta signs nine Bills into law The Presidency

The Finance Bill was passed by Parliament on Thursday amid protests from a section of the members and a public outcry over the bill’s motion and its passing. Before accompanying the President to Gatundu, First Lady Margaret Kenyatta had cast her vote at St. Mary’s School in Nairobi County shortly before 7.00 am. President Uhuru Kenyatta on Tuesday morning cast his vote at Mutomo Primary School in Gatundu, Kiambu County. Analysts noted how real estate transactions will be impacted by a revision of the CGT rate to 15%. Gains from the first review encouraged proposals to raise the rate to 20 percent and 12.5 percent through the Income Tax Bill 2018 and the Finance Bill 2019, respectively. This indicates that the rate, which is applied to the net revenues from the sale of property, will triple starting in January of 2020 as a result of President Kenyatta endorsing Treasury proposals. Said tax collected in the six months to 31 December 2021 had increased from KSh673.6 billion to KSh868.8 billion.

The amendment was then approved in the National Assembly and the finance bill was passed, sending it to Kenyatta’s desk. Finance Committee chair Joseph Kirui Limo noted when he introduced the amendment that the tax had led President Kenyatta Signs Tax Laws to revenue “going down” as operators left the market and bettors played with unlicensed operators. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.

President Kenyatta signs six Bills into law The Presidency

Although the budget deficit has further increased concerns of Kenya’s growing debt pile and looming debt repayments, Yatani said it has reduced from the current 8.2% of GDP to 6% in the new budget. Kenya is projecting slower, but significant growth over the next year, its Cabinet Secretary for Treasury Ukur Yatani said during his budget speech on Thursday 7 April.

  • At his annual State of the Nation address last fall, President Uhuru Kenyatta mounted the podium at Kenya’s Parliament to acknowledge that too many Kenyans live in poverty and too many officials loot the country’s public resources.
  • Security Council this month — as well as defending democracy and human rights, strengthening financial transparency, accelerating economic growth, and tackling climate change.
  • Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.
  • Kenya’s High Court ruled that the government’s plan to impose a minimum tax on corporate sales, even when a company reports losses, is unconstitutional.
  • We know that Africa is a continent experiencing rapid demographic growth, vast economic potential, and significant geopolitical influence on the world stage.

Every year, by law, any Kenyan president is required to tell the country about its progress and setbacks. But the comparison is with a period of economic slump, when tax relief was granted to cushion individuals and businesses against the effects of Covid-19 lockdowns.

Quantifying Commitment to Innovation in East Africa

Election years are normally bad for economic growth in Kenya, which could mean even slower growth especially if the August 2022 elections are contentious. Other risks include continued inflationary pressures especially on the agricultural sector, where the Russia-Ukraine conflict and an uncertain rainy season have threatened to derail the country’s most important planting season. Kenya’s latest budget has not quenched the thirst for borrowing to finance infrastructure, and proposes a contentious way to arbitrate tax disputes. Members of the military carry the body of former president John Magufuli to lie in state at Uhuru stadium in Dar es Salaam, Tanzania Saturday, March 20, 2021. Tens of thousands of Tanzanians came out to view Magufuli’s body at Uhuru Stadium in the country’s largest city, Dar es Salaam, over the weekend. Suzan Mtua, 30, died with four school-age children from the same family when there was a stampede of people wanting to view the body Sunday, Heri Mtua, a family spokesman, said.

Kenyans have been angered by the new taxes, accusing authorities of forcing them to dig deeper into their pockets, while the government presides over wastage of its revenue through theft and corruption. The bill was passed by parliament on Thursday during an acrimonious session marked by loud protests from lawmakers opposed to a new eight percent value-added tax on all petroleum products. AllAfrica is a voice of, by and about Africa – aggregating, producing and distributing 600 news and information items daily from over 100 African news organizations and our own reporters to an African and global public. Nairobi — President Uhuru Kenyatta Saturday signed into law the Tax Laws Bill, 2020, at State House, Nairobi. It is not clear however from the statement whether persons earning between KES 24,000 and the top tax rate threshold of KES 47,059 will get the tax relief.

US Stocks: Wall St set for weekly gains on signs of cooling inflation

U.S. Secretary of State Antony Blinken has begun his first official visit to Africa with an appeal for the preservation of democracy in politically and ethnically fractured societies. Kenyan President Uhuru Kenyatta has been welcomed by President Cyril Ramaphosa to start a two-day state visit to South Africa.

President Kenyatta Signs Tax Laws

Covid-19 patients are being treated at the Tshwane District Hospital in Pretoria, South Africa, Friday July 10, 2020. Health Minister Zweli Mkhize this week said South Africa could run out of available hospital beds within the month. Inequality concerns are growing as health workers seek better protection while some among the rich are hoarding equipment at home. South Africa now has more than 250,000 confirmed cases, including more than 3,800 deaths.

Kenya tightens restrictions amid a spike of COVID-19 deaths

The information contained in this newsletter was submitted by the KPMG International member firm in Kenya. 1 For the President’s 25 March address to the nation proposing the measures, click here.

President Kenyatta Signs Tax Laws

With hard-hitting investigations, innovative analysis and deep dives into countries and sectors, The Africa Report delivers the insight you need. The cost on mobile money transfer services, such as M-Pesa, is also set to go up as taxes further increase to 20 per cent from 12 per cent. I give my commitment that I will ensure proper utilization of public resources for a better Kenya. I will not relent on the war against corruption,” the President said on his official https://turbo-tax.org/ twitter handle. The minister to publish a “statement of actual revenues” in the official Kenya Gazette within 21 days after the end of every month. The statement shows total tax and non-tax revenue, domestic and foreign loans and their repayment, and grants. Kenya’s Business Daily newspaper said tax revenue in the first half of the current financial year – July to December 2021 – rose at the “fastest pace” since president Uhuru Kenyatta took office in 2013.

Kenya’s election rips open scars of inequality, corruption

President Joe Biden and Kenyan President Uhuru Kenyatta discussed financial transparency as the East African leader visited the White House on Thursday. Ethiopia’s government is marking a year of war by lashing out in response to international alarm about hate speech. Kenyans are paying their last respects to former leader Mwai Kibaki in a state funeral service Friday that is attended by African leaders. It continued, “The notable increase in CGT rate could potentially slow down investment and transactions in several sectors, including as real estate.” This action was largely considered as a test run for a larger plan to improve its performance in collecting taxes.

There was a chaotic debate in parliament on Thursday evening, where the bill was eventually passed by MPs. In his first State of the Nation address, Kenyatta promised honest government and offered to forgo 20% of his salary. In public, Kenyatta vigorously espoused transparency, and anti-corruption activists praised him for his fight against graft. The Pandora Papers reveal the Kenyattas also secretly owned offshore shell companies. Uhuru’s mother, Ngina, popularly known as “Mama Ngina,” was given 264 acres over decades, according to a later government probe, which recommended that the landholdings be revoked. Following Jomo Kenyatta’s death in 1978, in his 80s , Moi took over as president, as a result of complex negotiations designed to head off tribal feuds. There’s been reports in the Kenyan media that U.S. investment promises are already drying up because of, you know, lack of progress on the U.S.-Kenya FTA.

Njoroge ruled out using the law to regulate interest rates the lenders would charge. As part of the supplementary budget, the Teachers Service Commission has been allotted Ksh.2.1 billion and Ksh.1.37 billion to cover pending salaries and the ongoing revamping of primary schools across the country respectively. “The second Supplementary Appropriation Bill of 2022 makes available a total of Ksh.88,822,649,842 for Government expenditure on public services among them the fuel stabilization fund which has been allocated Ksh.49,292,440,866,” PSCU said in a statement. It eventually did bring the 20% stake tax back with this year’s finance bill, when it was first presented to Parliament in May. This tax was increased from 10% in 2019 in a move that led to operators Sportpesa and Betin leaving the market, on the back of a different dispute over another 20% tax on stakes.

  • While the tax remained in an initial version of the 2020 Bill, the National Assembly’s Finance and National Planning Committee submitted an amendment to remove it.
  • Nairobi — President Uhuru Kenyatta Saturday signed into law the Tax Laws Bill, 2020, at State House, Nairobi.
  • The head of the state signed into law the Bill on Saturday, April 25, shortly after addressing the nation on matters of the novel coronavirus pandemic which has wrecked havoc to Kenyans.
  • ” Well, Kenya is a strong bilateral partner and a leader on regional and global issues.
  • Rationing of private-sector lending, non-performing loans continue to swell in the banking sector.

Last modified: August 13, 2022