Finance Bill 2024 - Webinar Presentation-1.pdf
Godwil1
74 views
42 slides
Jun 02, 2024
Slide 1 of 42
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
About This Presentation
Kenya Finance Bill
Slide Content
Get ahead of the game:
Unpacking the Finance
Bill, 2024
Kenya Finance
Bill, 2024 Analysis
May 2024
_______________________
Kpmg.com/eastafrica
Unpacking the Finance
Bill, 2024
Kenya Finance
Bill, 2024 Analysis
May 2024
_______________________
Kpmg.com/eastafrica
1Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Opening Remarks
Stephen
Ng’ang’a
Partner
Tax and Regulatory Services
KPMG East Africa
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Opening Remarks
Stephen
Ng’ang’a
Partner
Tax and Regulatory Services
KPMG East Africa
2Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
The Presenting Team
Solomon
Kihang’a
Senior Manager
Tax
Income Tax
Peter Kinuthia
Partner & Head
Tax
Closing
Remarks
Clive Akora
Partner
Tax
Macroeconomic
Overview
Jossineter
Syengo
Senior Manager
Tax
Excise Duty &
Miscellaneous
Fees and Levies
Stephen
Ng’ang’a
Partner
Tax
Opening
Remarks
Kenneth Wanjohi
Associate Director
Tax
Value Added Tax
Maryann Kamau
Senior Associate
Tax
Tax
Procedures &
Other Acts
Changes
Esther Kithome
Manager
Tax
Q&A Session
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
The Presenting Team
Solomon
Kihang’a
Senior Manager
Tax
Income Tax
Peter Kinuthia
Partner & Head
Tax
Closing
Remarks
Clive Akora
Partner
Tax
Macroeconomic
Overview
Jossineter
Syengo
Senior Manager
Tax
Excise Duty &
Miscellaneous
Fees and Levies
Stephen
Ng’ang’a
Partner
Tax
Opening
Remarks
Kenneth Wanjohi
Associate Director
Tax
Value Added Tax
Maryann Kamau
Senior Associate
Tax
Tax
Procedures &
Other Acts
Changes
Esther Kithome
Manager
Tax
Q&A Session
3Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Economic overview
Clive Akora
Partner
Tax and Regulatory Services
KPMG East Africa
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Economic overview
Clive Akora
Partner
Tax and Regulatory Services
KPMG East Africa
Economic
overview
01
overview
01
5Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
▪Improvedmacroeconomic environment
characterized by slight increase inGDP (4.8%
to 5.5%) attributed to improved monetary
policy formulation and implementation.
▪Inflation remained above the Government
target range of 5±2.5.
▪Revenue as a percentage of GDP has been
declining (2014: 18.1% 2023:14.3%)
▪Reduction of the fiscal deficit to a target of
3.0% of the GDP through the increased tax
collections.
Global Outlook
Global economic growth experiencing challenges from:
a.Global supply chains disruptions
b.Heightened political tensions
c.Weakening demand in China and Eurozone
d.Elevated global interest rates on account of
inflationary pressures
e.Significant loss and damages due to frequent
extreme weather events
f.Weakening of currencies in emerging and
frontier markets against US Dollar – tightening
monetary policy
Above challenges resulted in slow down of global
economic growth from 3% in 2023 to 2.9% in 2024.
Global Economic Outlook
Kenyan economic outlook
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
▪Improvedmacroeconomic environment
characterized by slight increase inGDP (4.8%
to 5.5%) attributed to improved monetary
policy formulation and implementation.
▪Inflation remained above the Government
target range of 5±2.5.
▪Revenue as a percentage of GDP has been
declining (2014: 18.1% 2023:14.3%)
▪Reduction of the fiscal deficit to a target of
3.0% of the GDP through the increased tax
collections.
Global Outlook
Global economic growth experiencing challenges from:
a.Global supply chains disruptions
b.Heightened political tensions
c.Weakening demand in China and Eurozone
d.Elevated global interest rates on account of
inflationary pressures
e.Significant loss and damages due to frequent
extreme weather events
f.Weakening of currencies in emerging and
frontier markets against US Dollar – tightening
monetary policy
Above challenges resulted in slow down of global
economic growth from 3% in 2023 to 2.9% in 2024.
Global Economic Outlook
Kenyan economic outlook
6Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Kenya outlook - Summary
▪Despite the increase in GDP, the following downside risks remain:
a)unpredictable weather conditions which will impact agricultural production, leading to inflationary pressure
b)escalation of geopolitical conflicts could lead to increased supply disruptions
c)High interest rates (CBR up from 7% in 2022 to 13% in 2024) –increased defaults and impairments, fiscal
pressures due to higher financing needs
d)Sustained weaknesses in global demand resulting in subdued demand for Kenya’s exports and falling foreign
direct investments
▪The following are upside risks to the domestic economy:
a)early easing of global financing conditions; and
b)lower international fuel and food prices, which would strengthen Kenya’s external balances
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Kenya outlook - Summary
▪Despite the increase in GDP, the following downside risks remain:
a)unpredictable weather conditions which will impact agricultural production, leading to inflationary pressure
b)escalation of geopolitical conflicts could lead to increased supply disruptions
c)High interest rates (CBR up from 7% in 2022 to 13% in 2024) –increased defaults and impairments, fiscal
pressures due to higher financing needs
d)Sustained weaknesses in global demand resulting in subdued demand for Kenya’s exports and falling foreign
direct investments
▪The following are upside risks to the domestic economy:
a)early easing of global financing conditions; and
b)lower international fuel and food prices, which would strengthen Kenya’s external balances
7Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Kenya outlook - Fiscal Overview
01
High government expenditure is not
supported by the available revenues
•Recurrent expenditures partly paid by debt.
However, in the medium term, national
governments borrowing shall only be used for
development expenditure;
•Collections below projections, however,
expected to increase to 19% of GDP in 2024.
•Successful refinancing of Eurobond has
reduced sovereign default risks.
•Allocations for development expenditure below
constitutional requirement of 30%
•Interest payments are now more than wage
and pension payments –rates are
unsustainable
02
Impact of deteriorating fiscal
position
•Delayed county disbursements -
delayed salaries and pending bills
•Deferral of development
expenditure –likely to impact
economic growth
•Review of budgets of state
corporations –recurrent
expenditure capped to 70% of
2023/24, 80% of after-tax profit to
be paid as dividends and
regulatory authorities to remit 90%
of surplus.
03
2024 Budget of KES
3.914T, ordinary
revenues of KES 2.913T
•Recurrent and
development
expenditure of KES
2.781T and KES 687B
respectively
•Net external borrowing
of KES 446 B
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Kenya outlook - Fiscal Overview
01
High government expenditure is not
supported by the available revenues
•Recurrent expenditures partly paid by debt.
However, in the medium term, national
governments borrowing shall only be used for
development expenditure;
•Collections below projections, however,
expected to increase to 19% of GDP in 2024.
•Successful refinancing of Eurobond has
reduced sovereign default risks.
•Allocations for development expenditure below
constitutional requirement of 30%
•Interest payments are now more than wage
and pension payments –rates are
unsustainable
02
Impact of deteriorating fiscal
position
•Delayed county disbursements -
delayed salaries and pending bills
•Deferral of development
expenditure –likely to impact
economic growth
•Review of budgets of state
corporations –recurrent
expenditure capped to 70% of
2023/24, 80% of after-tax profit to
be paid as dividends and
regulatory authorities to remit 90%
of surplus.
03
2024 Budget of KES
3.914T, ordinary
revenues of KES 2.913T
•Recurrent and
development
expenditure of KES
2.781T and KES 687B
respectively
•Net external borrowing
of KES 446 B
8Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Income Tax Changes
Solomon Kihang’a
Senior Manager
Tax and Regulatory Services
KPMG East Africa
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Income Tax Changes
Solomon Kihang’a
Senior Manager
Tax and Regulatory Services
KPMG East Africa
Income Tax
Changes
02
Changes
02
10Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
▪Taxation of income or principal sum of a registered family trust.
▪Reduction of late income tax filing penalties for EPZ enterprise from KES 2,000per
day to KES 20,000 per month.
▪Capital allowance of 10% per year to a spectrum licence by a telecommunication
operator.
▪Increase of the tax rate from 2.5% to 3% on non-resident air transport operators
and ship owners.
Income Tax – Corporation Tax
▪Proposal to introduce motor vehicle tax at 2.5% of the value of the motor vehicle with
a minimum of KES 5,000and a maximum of KES 100,000
▪Repeal of digital service tax and replacement with significant economic presence tax
at the rate of 30% on 20% deemed profit -Effective tax rate of 6%
▪WHT on payment/facilitation of payments by digital marketplace or platform owners
at the rate of 5% and 20% for residents and non-residents respectively
▪Reduction of the period for deferment of realized exchange loss from 5 to 3 years.
▪Taxation of interest on bonds, notes, or similar securities at 15% used to raise funds
for infrastructure and other social services issued after 1 July 2024.
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
▪Taxation of income or principal sum of a registered family trust.
▪Reduction of late income tax filing penalties for EPZ enterprise from KES 2,000per
day to KES 20,000 per month.
▪Capital allowance of 10% per year to a spectrum licence by a telecommunication
operator.
▪Increase of the tax rate from 2.5% to 3% on non-resident air transport operators
and ship owners.
Income Tax – Corporation Tax
▪Proposal to introduce motor vehicle tax at 2.5% of the value of the motor vehicle with
a minimum of KES 5,000and a maximum of KES 100,000
▪Repeal of digital service tax and replacement with significant economic presence tax
at the rate of 30% on 20% deemed profit -Effective tax rate of 6%
▪WHT on payment/facilitation of payments by digital marketplace or platform owners
at the rate of 5% and 20% for residents and non-residents respectively
▪Reduction of the period for deferment of realized exchange loss from 5 to 3 years.
▪Taxation of interest on bonds, notes, or similar securities at 15% used to raise funds
for infrastructure and other social services issued after 1 July 2024.
11Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Income Tax - Corporation Tax
•Removal of 20% penalty on
non-payment/
underpayment of instalment
taxes
•Recognition of sales to a
public entity to be deferred
to the year payment is made
•Retirement, pension and
provident funds no longer
required to register with the
Commissioner
Withholding Tax (WHT)
•Removal of minimum threshold
of KES 24,000 p.m.on
withholding tax for residents
•Income from supply of goods to
public entity to be subjected to
5% WHT
•Introduction of withholding tax
at the rate of 5% on securities
with a 3-year maturity.
•Royalty definition to include use
or transfer of the right to use
software within the definition of
royalty.
Capital Gains Tax (CGT)
•Exemption from CGT on tax
gains derived from transfer of
property within a SEZ by a
licensed developer, enterprise or
operator.
•Reduction of the CGT rate from
15% to 5% for the transfer of
certified investments.
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Income Tax - Corporation Tax
•Removal of 20% penalty on
non-payment/
underpayment of instalment
taxes
•Recognition of sales to a
public entity to be deferred
to the year payment is made
•Retirement, pension and
provident funds no longer
required to register with the
Commissioner
Withholding Tax (WHT)
•Removal of minimum threshold
of KES 24,000 p.m.on
withholding tax for residents
•Income from supply of goods to
public entity to be subjected to
5% WHT
•Introduction of withholding tax
at the rate of 5% on securities
with a 3-year maturity.
•Royalty definition to include use
or transfer of the right to use
software within the definition of
royalty.
Capital Gains Tax (CGT)
•Exemption from CGT on tax
gains derived from transfer of
property within a SEZ by a
licensed developer, enterprise or
operator.
•Reduction of the CGT rate from
15% to 5% for the transfer of
certified investments.
12Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
What is it: This is a tax payable by a covered person where the combined income effective tax rate
is less than 15% in a year of income. The proposal introduces a minimum tax rate of 15% for Multi-
National Entities (MNEs) that meet revenue thresholds below.
Who does it apply to: “Covered Person” i.e. a resident or permanent establishment of a non
resident person who is a member of MNE group with consolidated annual turnover of at leastEUR
750 million in at least two of the four years preceding the year of income.
Implication: Covered persons to pay a minimum effective tax rate of 15% in Kenya.
Income Tax – International Tax and Transfer Pricing
Minimum Top up Tax
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
What is it: This is a tax payable by a covered person where the combined income effective tax rate
is less than 15% in a year of income. The proposal introduces a minimum tax rate of 15% for Multi-
National Entities (MNEs) that meet revenue thresholds below.
Who does it apply to: “Covered Person” i.e. a resident or permanent establishment of a non
resident person who is a member of MNE group with consolidated annual turnover of at leastEUR
750 million in at least two of the four years preceding the year of income.
Implication: Covered persons to pay a minimum effective tax rate of 15% in Kenya.
Income Tax – International Tax and Transfer Pricing
Minimum Top up Tax
13Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Income Tax – International Tax and Transfer Pricing
NET INCOME/LOSS
MINIMUM TOP-UP TAX
NET INCOME OR
LOSS FOR THE YEAR
ADJUSTED
COVERED TAXES
15%
Excess profit Combined effective tax rate (%)
100%
(10% OF
EMPLOYEE
COSTS + 8% OF
TANGIBLE
ASSETS )
Minimum Top up Tax
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Income Tax – International Tax and Transfer Pricing
NET INCOME/LOSS
MINIMUM TOP-UP TAX
NET INCOME OR
LOSS FOR THE YEAR
ADJUSTED
COVERED TAXES
15%
Excess profit Combined effective tax rate (%)
100%
(10% OF
EMPLOYEE
COSTS + 8% OF
TANGIBLE
ASSETS )
Minimum Top up Tax
14Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Advance Pricing Agreement (APA)
What is it: An arrangement that determines, in advance of controlled transactions, an appropriate set of criteria for the
determination of the transfer pricing for those transactions over a fixed period of time (OECD TPG 2022).
Who does it apply to: Entities with related party transactions, especially complex transactions where traditional
methods might pose challenges and have a high risk of transfer pricing disputes arising in future.
What does this mean to taxpayers:
▪Certainty in setting transfer prices; and
▪Reduction in transfer pricing disputes.
Income Tax – International Tax and Transfer Pricing
Advance Pricing Agreement (APA)
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Advance Pricing Agreement (APA)
What is it: An arrangement that determines, in advance of controlled transactions, an appropriate set of criteria for the
determination of the transfer pricing for those transactions over a fixed period of time (OECD TPG 2022).
Who does it apply to: Entities with related party transactions, especially complex transactions where traditional
methods might pose challenges and have a high risk of transfer pricing disputes arising in future.
What does this mean to taxpayers:
▪Certainty in setting transfer prices; and
▪Reduction in transfer pricing disputes.
Income Tax – International Tax and Transfer Pricing
Advance Pricing Agreement (APA)
15Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Expanded tax deductible non-
cash employment benefit
▪From the current KES 36,000 to
KES 48,000 per year
Unfettered benefit for public
officers
▪Exemption from tax any amount
paid or granted to a public officer
as reimbursement of expenditure
incurred
Exemption of pension benefits
▪Pension benefits paid upon
attainment of retirement age,
withdrawal after 20 years since
registration and retirement due to
ill health will be exempted from
tax
Update of per-diem rates
•From the currentKES 2,000 to an
amount not exceeding 5% of the
monthly gross earning of an
employee where the employer has
a policy
Increase in pension allowable
deduction
•To increase the allowable pension
contribution made by an individual
to a registered pension fund from
KES 20,000 per month to KES
30,000 per month
Meals
▪The allowable value of meals served
to employees to be increased from
KES 48,000 to KES 60,000per year
Higher interest deduction for
mortgage holders
▪Deductible interest on mortgage
interest to increase from KES
300,000 to KES 360,000 per annum
Increased disposal income
▪Proposal to Introduce tax deductions
on employees’ taxable income on
contributions made to SHIF, AHL and
a post-retirement medical scheme.
Income Tax - PAYE
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Expanded tax deductible non-
cash employment benefit
▪From the current KES 36,000 to
KES 48,000 per year
Unfettered benefit for public
officers
▪Exemption from tax any amount
paid or granted to a public officer
as reimbursement of expenditure
incurred
Exemption of pension benefits
▪Pension benefits paid upon
attainment of retirement age,
withdrawal after 20 years since
registration and retirement due to
ill health will be exempted from
tax
Update of per-diem rates
•From the currentKES 2,000 to an
amount not exceeding 5% of the
monthly gross earning of an
employee where the employer has
a policy
Increase in pension allowable
deduction
•To increase the allowable pension
contribution made by an individual
to a registered pension fund from
KES 20,000 per month to KES
30,000 per month
Meals
▪The allowable value of meals served
to employees to be increased from
KES 48,000 to KES 60,000per year
Higher interest deduction for
mortgage holders
▪Deductible interest on mortgage
interest to increase from KES
300,000 to KES 360,000 per annum
Increased disposal income
▪Proposal to Introduce tax deductions
on employees’ taxable income on
contributions made to SHIF, AHL and
a post-retirement medical scheme.
Income Tax - PAYE
16Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax Changes
Kenneth Wanjohi
Associate Director
Tax and Regulatory Services
KPMG East Africa
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax Changes
Kenneth Wanjohi
Associate Director
Tax and Regulatory Services
KPMG East Africa
Value Added
Tax Changes
03
Tax Changes
03
18Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax
Time of supply for exported goods is on
possession of the required export confirmation
documents
VAT refund for official aid funded projects
▪No more refund of credit arising from
supplies made by a manufacturer to an
official aid funded projects
Change in input VAT apportioning rule
▪No more apportionment of input VAT based
on percentages of taxable and exempt
supplies
Claim of excess input VAT
▪VAT refunds to be claimed within 6 months
down from 24 months
Transfer of business as a going concern from
standard rated to exempt
Threshold for VAT Registration increases from
KES 5 million to KES 8 million
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax
Time of supply for exported goods is on
possession of the required export confirmation
documents
VAT refund for official aid funded projects
▪No more refund of credit arising from
supplies made by a manufacturer to an
official aid funded projects
Change in input VAT apportioning rule
▪No more apportionment of input VAT based
on percentages of taxable and exempt
supplies
Claim of excess input VAT
▪VAT refunds to be claimed within 6 months
down from 24 months
Transfer of business as a going concern from
standard rated to exempt
Threshold for VAT Registration increases from
KES 5 million to KES 8 million
19Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax
Update on exemption of solar and wind energy
generating equipment
Exemption to apply until the completion of the
current projects under development
VAT on financial and insurance services
▪issuance of credit and debit cards
▪telegraphic money transfer services
▪The assignment of a debt for consideration
▪Foreign exchange transactions
▪Cheque handling, processing, clearing and
settlement
▪Issuance of securities for money, including
bills of exchange, promissory notes, money
and postal orders
▪The provision of financial services on behalf
of another on a commission basis
▪Management and related insurance
consultancy services
▪Services of insurance assessors and loss
adjusters
▪Actuarial services
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax
Update on exemption of solar and wind energy
generating equipment
Exemption to apply until the completion of the
current projects under development
VAT on financial and insurance services
▪issuance of credit and debit cards
▪telegraphic money transfer services
▪The assignment of a debt for consideration
▪Foreign exchange transactions
▪Cheque handling, processing, clearing and
settlement
▪Issuance of securities for money, including
bills of exchange, promissory notes, money
and postal orders
▪The provision of financial services on behalf
of another on a commission basis
▪Management and related insurance
consultancy services
▪Services of insurance assessors and loss
adjusters
▪Actuarial services
20Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax
Health Sector
16% to exempt
▪Mosquito repellent
▪Inputs and raw materials used in the
manufacture of mosquito repellent
Exempt to 16%
▪Taxable goods for the construction and
equipping of specialized hospitals with a
minimum bed capacity of fifty beds
Betting Sector
Exempt to 16%
▪Betting, gaming and lotteries services
Agricultural Sector
16% to exempt
▪Tea packaging materials
▪Micronutrients foliar feeds and bio-stimulants
(Organic fertilizers)
Zero rated to exempt
▪Agricultural pest control products
▪Material used in manufacturers of agricultural
pest control products
Zero rated to 16%
▪Transportation of sugarcane from farms to
milling factories
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax
Health Sector
16% to exempt
▪Mosquito repellent
▪Inputs and raw materials used in the
manufacture of mosquito repellent
Exempt to 16%
▪Taxable goods for the construction and
equipping of specialized hospitals with a
minimum bed capacity of fifty beds
Betting Sector
Exempt to 16%
▪Betting, gaming and lotteries services
Agricultural Sector
16% to exempt
▪Tea packaging materials
▪Micronutrients foliar feeds and bio-stimulants
(Organic fertilizers)
Zero rated to exempt
▪Agricultural pest control products
▪Material used in manufacturers of agricultural
pest control products
Zero rated to 16%
▪Transportation of sugarcane from farms to
milling factories
21Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax
Energy sector
Zero rated to exempt
▪Bioethanol vapour (BEV) stoves
Zero rated to 16%
▪The supply of electric bicycles and electric
buses
▪The supply of solar and lithium-ion batteries
Education Sector
Exempt to 16%
•Musical instruments and other musical
equipment, imported or purchased locally, for
exclusive use by educational institutions
Aviation sector
Exempt to 16%
▪Aeroplanes and other aircrafts of unladen weight
exceeding 2,000 kg but not exceeding 15,000 kg
▪Spacecraft (including satellites) and suborbital and
spacecraft launch vehicles
▪Direction finding compasses, instruments and
appliances for aircrafts
▪Hiring, leasing and chartering of aircrafts,
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax
Energy sector
Zero rated to exempt
▪Bioethanol vapour (BEV) stoves
Zero rated to 16%
▪The supply of electric bicycles and electric
buses
▪The supply of solar and lithium-ion batteries
Education Sector
Exempt to 16%
•Musical instruments and other musical
equipment, imported or purchased locally, for
exclusive use by educational institutions
Aviation sector
Exempt to 16%
▪Aeroplanes and other aircrafts of unladen weight
exceeding 2,000 kg but not exceeding 15,000 kg
▪Spacecraft (including satellites) and suborbital and
spacecraft launch vehicles
▪Direction finding compasses, instruments and
appliances for aircrafts
▪Hiring, leasing and chartering of aircrafts,
22Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax
Transport sector
Zero rated to exempt
▪Supply of motorcycles of tariff heading
8711.60.00 (Electric Motorcycles)
Zero rated to 16%
▪Inbound international sea freight offered by a
registered person
Tourism sector
Exempt to 16%
▪Taxable goods and services for direct and
exclusive use for the construction of tourism
facilities, recreational parks of 50 acres or
more, convention and conference facilities
▪Specially designed locally assembled motor
vehicles for transportation of tourists
Manufacturing sector
Exempt to 16%
▪Plant, machinery and equipment used in the
construction of a plastics recycling plant
Zero rated to 16%
▪Bread
▪The supply of locally assembled and
manufactured mobile phones
Film Sector
Exempt to 16%
▪Goods and services used by the local film
producers or local film agents
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Value Added Tax
Transport sector
Zero rated to exempt
▪Supply of motorcycles of tariff heading
8711.60.00 (Electric Motorcycles)
Zero rated to 16%
▪Inbound international sea freight offered by a
registered person
Tourism sector
Exempt to 16%
▪Taxable goods and services for direct and
exclusive use for the construction of tourism
facilities, recreational parks of 50 acres or
more, convention and conference facilities
▪Specially designed locally assembled motor
vehicles for transportation of tourists
Manufacturing sector
Exempt to 16%
▪Plant, machinery and equipment used in the
construction of a plastics recycling plant
Zero rated to 16%
▪Bread
▪The supply of locally assembled and
manufactured mobile phones
Film Sector
Exempt to 16%
▪Goods and services used by the local film
producers or local film agents
23Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Excise Duty & Miscellaneous Fees and Levies
Jossineter Syengo
Senior Manager
Tax and Regulatory Services
KPMG East Africa
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Excise Duty & Miscellaneous Fees and Levies
Jossineter Syengo
Senior Manager
Tax and Regulatory Services
KPMG East Africa
Excise Duty Act
04
04
25Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Excise Duty Act
Introduction of Excise
Duty Remission for spirits
Removal of Excise Duty
Relief on Excisable finished
products
Excise Duty for services offered by
non-residents through
digitalplatforms e.g., betting,
gaming, advertisement.
Payment date of Excise Duty on
manufactured alcoholic
beverages extended from 24 hrs
to 5 working days
Excise Duty on
motorcycles
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Excise Duty Act
Introduction of Excise
Duty Remission for spirits
Removal of Excise Duty
Relief on Excisable finished
products
Excise Duty for services offered by
non-residents through
digitalplatforms e.g., betting,
gaming, advertisement.
Payment date of Excise Duty on
manufactured alcoholic
beverages extended from 24 hrs
to 5 working days
Excise Duty on
motorcycles
26Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Excise Duty
Description Previous rate Proposed rate
Excise Duty on telephone and internet data services 15% 20%
Money transfer services and other fees 15% 20%
Excise Duty on betting, gaming, prize competition, Lottery 12.5% 20%
Wines including fortified wines, and other alcoholic beverages obtained by
fermentation of fruits
KES. 243.43/litre KES. 22.50/centilitre of pure alcohol
Beer, Cider, Perry, Mead, Opaque beer and mixtures of fermented beverages
with non-alcoholic beverages and spirituous beverages of alcoholic strength
not exceeding 6%
KES. 142.44/litre KES. 22.50/centilitre of pure alcohol
Spirits of undenatured ethyl alcohol; spirits liqueurs and other spirituous
beverages of alcoholic strength exceeding 6%
KES. 356.42/litre KES. 16/centilitre of pure alcohol
Cigarettes with filters (hinge lid and soft cap) KES. 4,067.03/mille KES. 4,100/mille
Cigarettes without filters (plain cigarettes) KES.2,926.41/mille KES. 4,100/mille
Excise Duty on fees charged on advertisement via the internet and social
media
0% 20%
Nicotine pouches and nicotine liquid KES. 1,594.50/kg KES. 2,000.00/kg
Coal N/A
5% of the value or KES. 27,000/MT
whichever is higher
Vegetable oils of tariff headings 15.11, 15.12, 15.15 and 15.17
N/A
25%
Change and introduction of Excise duty rates
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Excise Duty
Description Previous rate Proposed rate
Excise Duty on telephone and internet data services 15% 20%
Money transfer services and other fees 15% 20%
Excise Duty on betting, gaming, prize competition, Lottery 12.5% 20%
Wines including fortified wines, and other alcoholic beverages obtained by
fermentation of fruits
KES. 243.43/litre KES. 22.50/centilitre of pure alcohol
Beer, Cider, Perry, Mead, Opaque beer and mixtures of fermented beverages
with non-alcoholic beverages and spirituous beverages of alcoholic strength
not exceeding 6%
KES. 142.44/litre KES. 22.50/centilitre of pure alcohol
Spirits of undenatured ethyl alcohol; spirits liqueurs and other spirituous
beverages of alcoholic strength exceeding 6%
KES. 356.42/litre KES. 16/centilitre of pure alcohol
Cigarettes with filters (hinge lid and soft cap) KES. 4,067.03/mille KES. 4,100/mille
Cigarettes without filters (plain cigarettes) KES.2,926.41/mille KES. 4,100/mille
Excise Duty on fees charged on advertisement via the internet and social
media
0% 20%
Nicotine pouches and nicotine liquid KES. 1,594.50/kg KES. 2,000.00/kg
Coal N/A
5% of the value or KES. 27,000/MT
whichever is higher
Vegetable oils of tariff headings 15.11, 15.12, 15.15 and 15.17
N/A
25%
Change and introduction of Excise duty rates
Miscellaneous
Fees & Levies
Act
05
Fees & Levies
Act
05
28Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Miscellaneous
Fees & Levies Act
Increase Import Declaration Fee from 2.5% to
3% Customs Value and amendment in use of
IDF Funds –10% to Kenya’s subscriptions to
international bodies and 20% to revenue
enforcement measures.
Exemption from IDF & RDL on inputs, raw
materials and machinery used in the
manufacture of mosquito repellents
01
02
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Miscellaneous
Fees & Levies Act
Increase Import Declaration Fee from 2.5% to
3% Customs Value and amendment in use of
IDF Funds –10% to Kenya’s subscriptions to
international bodies and 20% to revenue
enforcement measures.
Exemption from IDF & RDL on inputs, raw
materials and machinery used in the
manufacture of mosquito repellents
01
02
29Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Miscellaneous Fees & Levies Act
Goods Subject to Export and Investment Promotion Levy
Description Tariff Current rate Proposed rate (KES)
Articles of leather
42.01
42.02
42.03
42.05
N/A
20% of the Customs
value.
Footwear
64.01
64.02
64.03
64.04
64.05
N/A
20% of the Customs
value.
Denatured ethyl alcohol and other spirits. 2207.20.00 N/A
3% of the Customs
value.
Rum and other spirits obtained by distilling fermented sugar 2208.40.00 N/A
3% of the Customs
value.
Vodka 2208.60.00 N/A
3% of the Customs
value.
Organic surface-active products and preparations for washing the skin3401.30.00 N/A
3% of the Customs
value.
Furniture 9403 N/A
3% of the Customs
value.
7321.12.00
Cooking stoves for
liquid fuel.
N/A
3% of the Customs
value.
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Miscellaneous Fees & Levies Act
Goods Subject to Export and Investment Promotion Levy
Description Tariff Current rate Proposed rate (KES)
Articles of leather
42.01
42.02
42.03
42.05
N/A
20% of the Customs
value.
Footwear
64.01
64.02
64.03
64.04
64.05
N/A
20% of the Customs
value.
Denatured ethyl alcohol and other spirits. 2207.20.00 N/A
3% of the Customs
value.
Rum and other spirits obtained by distilling fermented sugar 2208.40.00 N/A
3% of the Customs
value.
Vodka 2208.60.00 N/A
3% of the Customs
value.
Organic surface-active products and preparations for washing the skin3401.30.00 N/A
3% of the Customs
value.
Furniture 9403 N/A
3% of the Customs
value.
7321.12.00
Cooking stoves for
liquid fuel.
N/A
3% of the Customs
value.
30Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Miscellaneous Fees & Levies Act
Introduction of the Fourth Schedule: Goods Subject to Eco Levy
Description Tariff number Eco Levy rate (KES)
Portable automatic data processing machines,
weighing not more than 10 kg,
8471.30.00 225 per unit
Parts and accessories of the machines of
Automatic data processing machines and units
8473.30.00 98 per unit
Line telephone sets with cordless handsets 8517.11.00 225 per unit
Other telephones for cellular networks or for
other wireless networks
8517.14.00 225 per unit
Base stations 8517.61.00 225 per unit
Smartphones 8517.13.00 225 per unit
New pneumatic tyres, of rubber. 40.11 1,000 per unit
Retreaded or used pneumatic tyres, of rubber.40.12 1,000 per unit
Diapers 9619.00.90 150 per Kg
Primary cells and primary batteries. 85.06 750 per Kg
Electric accumulators, including separators.85.07 750 per Kg
Plastic packing materials 39.23 150 per Kg
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Miscellaneous Fees & Levies Act
Introduction of the Fourth Schedule: Goods Subject to Eco Levy
Description Tariff number Eco Levy rate (KES)
Portable automatic data processing machines,
weighing not more than 10 kg,
8471.30.00 225 per unit
Parts and accessories of the machines of
Automatic data processing machines and units
8473.30.00 98 per unit
Line telephone sets with cordless handsets 8517.11.00 225 per unit
Other telephones for cellular networks or for
other wireless networks
8517.14.00 225 per unit
Base stations 8517.61.00 225 per unit
Smartphones 8517.13.00 225 per unit
New pneumatic tyres, of rubber. 40.11 1,000 per unit
Retreaded or used pneumatic tyres, of rubber.40.12 1,000 per unit
Diapers 9619.00.90 150 per Kg
Primary cells and primary batteries. 85.06 750 per Kg
Electric accumulators, including separators.85.07 750 per Kg
Plastic packing materials 39.23 150 per Kg
31Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Tax Procedures Act & Other Acts Changes
Maryann Kamau
Senior Associate
Tax and Regulatory Services
KPMG East Africa
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Tax Procedures Act & Other Acts Changes
Maryann Kamau
Senior Associate
Tax and Regulatory Services
KPMG East Africa
Tax Procedures
Act
06
Act
06
33Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Tax Procedures Act
Computation of time
▪The Bill proposes to amend
Section 77 to exclude
Saturdays, Sundays and public
holidays from computation of
time.
Objection Decision to
be made within 90 days
▪The Bill proposes to
increase the timeframe
for the Commissioner
making an objection
decision from 60 days
to 90 days.
Validity of Agency Notices
▪Introduction of a year-one validity
period for agency notices where
the agent has not notified the
Commissioner that they are
unable to settle the amounts due.
..
Unsupported objections to
be deemed disallowed
▪The Bill proposes to
automatically disallow
objections where the taxpayer
does not provide information
within 7 days of being notified
that the objection is not validly
lodged.
Penalty for failure to integrate
the Electronic Tax System
▪The Bill proposes to introduce a penalty not
exceeding Two Million Shillings every month
for failure to comply with a notice requiring
integration of an electronic tax system and
submission of documents through the
system.
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Tax Procedures Act
Computation of time
▪The Bill proposes to amend
Section 77 to exclude
Saturdays, Sundays and public
holidays from computation of
time.
Objection Decision to
be made within 90 days
▪The Bill proposes to
increase the timeframe
for the Commissioner
making an objection
decision from 60 days
to 90 days.
Validity of Agency Notices
▪Introduction of a year-one validity
period for agency notices where
the agent has not notified the
Commissioner that they are
unable to settle the amounts due.
..
Unsupported objections to
be deemed disallowed
▪The Bill proposes to
automatically disallow
objections where the taxpayer
does not provide information
within 7 days of being notified
that the objection is not validly
lodged.
Penalty for failure to integrate
the Electronic Tax System
▪The Bill proposes to introduce a penalty not
exceeding Two Million Shillings every month
for failure to comply with a notice requiring
integration of an electronic tax system and
submission of documents through the
system.
34Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Tax Relief In Cases of Recovery
Difficulties
▪The Commissioner to defer tax
assessments or collections when
recovery is impossible, overly difficult,
or causes hardship.
▪Requirement forCabinet Secretary's
approval to obtain relief.
PIN registration for remote employees
▪PIN registration of employees outside
Kenya working remotely for an
employer based in Kenya.
Refund period of overpaid taxes
▪Refund period time-limit for overpaid
income taxes to be five years and six
months for other taxes.
Expanding the scope for Withholding VAT
▪Deletion of proviso exempting zero-
rated supplies and registered
manufacturers whose investment for
the three years preceding 1 July 2022
was at least KES 3 billion.
Tax Procedures Act
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Tax Relief In Cases of Recovery
Difficulties
▪The Commissioner to defer tax
assessments or collections when
recovery is impossible, overly difficult,
or causes hardship.
▪Requirement forCabinet Secretary's
approval to obtain relief.
PIN registration for remote employees
▪PIN registration of employees outside
Kenya working remotely for an
employer based in Kenya.
Refund period of overpaid taxes
▪Refund period time-limit for overpaid
income taxes to be five years and six
months for other taxes.
Expanding the scope for Withholding VAT
▪Deletion of proviso exempting zero-
rated supplies and registered
manufacturers whose investment for
the three years preceding 1 July 2022
was at least KES 3 billion.
Tax Procedures Act
Other Acts
07
07
36Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Other Acts
Kenya Revenue Authority (KRA) Act
▪Removal of the Civil Aviation Act from the list of legislation under the
Kenya Revenue Authority's collecting mandate, in view of the Kenya Civil
Aviation Authority’s (KCAA) oversight role in aviation matters
Extension of Commissioner’s powers in Industrial Training Act
▪Proposal to extend the Commissioner’s authority on collection of
training levy to also include powers provided under the Tax Procedures
Ac
01
Affordable Housing Act
▪Delete provision that prevented owners of affordable housing units to sell
without prior written consent of the Affordable Housing Board
Exemption of disclosure of personal data for tax assessment
▪Exempting the disclosure of personal data under the Data Protection Act
forassessment, enforcement, or collection of taxes
02
03
04
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Other Acts
Kenya Revenue Authority (KRA) Act
▪Removal of the Civil Aviation Act from the list of legislation under the
Kenya Revenue Authority's collecting mandate, in view of the Kenya Civil
Aviation Authority’s (KCAA) oversight role in aviation matters
Extension of Commissioner’s powers in Industrial Training Act
▪Proposal to extend the Commissioner’s authority on collection of
training levy to also include powers provided under the Tax Procedures
Ac
01
Affordable Housing Act
▪Delete provision that prevented owners of affordable housing units to sell
without prior written consent of the Affordable Housing Board
Exemption of disclosure of personal data for tax assessment
▪Exempting the disclosure of personal data under the Data Protection Act
forassessment, enforcement, or collection of taxes
02
03
04
37Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Questions and Answers Session
Esther Kithome
Manager
Tax and Regulatory Services
KPMG East Africa
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Questions and Answers Session
Esther Kithome
Manager
Tax and Regulatory Services
KPMG East Africa
38Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Q & A
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Q & A
39Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Closing Remarks
Peter Kinuthia
Partner and Head of Tax
and Regulatory Services
KPMG East Africa
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Closing Remarks
Peter Kinuthia
Partner and Head of Tax
and Regulatory Services
KPMG East Africa
40Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Thank you
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Thank you
41Kenya Finance Bill, 2024 Analysis
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
Peter Kinuthia
Partner, and Head of Tax
and Regulatory Services
KPMG East Africa
T: +254 709 576 215
E: [email protected]
Clive Akora
Partner, Tax and
Regulatory Services
KPMG East Africa
T: +254 720 068 088
E: [email protected]
Disclaimer
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely
information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
Stephen Ng’ang’a
Partner, Tax and Regulatory
Services
KPMG East Africa
T: +254 709 576 259
E: [email protected]
kpmg.com/eastafrica
Contacts
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
© 2024. KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
Peter Kinuthia
Partner, and Head of Tax
and Regulatory Services
KPMG East Africa
T: +254 709 576 215
E: [email protected]
Clive Akora
Partner, Tax and
Regulatory Services
KPMG East Africa
T: +254 720 068 088
E: [email protected]
Disclaimer
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely
information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the
Stephen Ng’ang’a
Partner, Tax and Regulatory
Services
KPMG East Africa
T: +254 709 576 259
E: [email protected]
kpmg.com/eastafrica
Contacts
Tags
Download
Download Slideshow Get the original presentation fileQuick Actions
Statistics
- Views 74
- Slides 42
- Age 566 days
Related Slideshows
1
DTI BPI Pivot Small Business - BUSINESS START UP PLAN
MeljunCortes
44 views
1
CATHOLIC EDUCATIONAL Corporate Responsibilities
MeljunCortes
42 views
11
Karin Schaupp – Evocation; lançamento: 2000
alfeuRIO
43 views
10
Pillars of Biblical Oneness in the Book of Acts
JanParon
39 views
31
7-10. STP + Branding and Product & Services Strategies.pptx
itsyash298
51 views
44
Business Legislation PPT - UNIT 1 jimllpkggg
slogeshk98
43 views