Tax
From The Report: Kenya 2018
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In conjunction with Ernst & Young, this chapter explores the taxation system and Kenya’s efforts to build an investor-friendly environment. It also contains a viewpoint with Gitahi Gachahi, CEO, EY Eastern Africa.

Articles from this Chapter

Overview

Broad appeal: A guide to the tax framework for individuals and businesses
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Kenya has a broad taxation system covering income tax, value-added tax (VAT), and Customs and excise duties. These are governed by independent legislation that establish provisions for the charge, assessment and collection of the respective taxes. The Kenya Revenue Authority (KRA) employs different divisions that deal with the three areas, undertaking reviews on companies to confirm they are paying the right taxes. An equally important factor for the protection of revenue leakage is corporate…

Analysis

Next steps: Policymakers debate the introduction of consumption taxes to offset non-compliance
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In mid-June 2018 the cabinet secretary of the National Treasury unveiled a comprehensive raft of tax administration measures tailored towards financing the government’s KSh3trn ($29.4bn) budget for FY 2018/19. Some of the measures were a reiteration of proposals envisaged in the Income Tax Bill, 2018, the Tax Laws (Amendment) Bill of that same year, and recommendations from the 2018 Budget and Appropriations Committee report to the National Assembly. While the ultimate focus of the measures…

Viewpoint

Simplicity and productivity: Gitahi Gachahi, CEO, EY Eastern Africa, on observing the canons of taxation as a prerequisite for growth
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Viewpoint: Gitahi Gachahi The simplification of a tax system goes a long way towards ensuring compliance. There are two distinct ways of simplifying a tax system – enhanced legislation and effective tax collection – and their execution must be coordinated for exemplary results to be attained. Good legislation is well thought out and customised to the dynamics of a country’s business models. Effective tax collection can only be attained by having capable tax administration achieved. In a report…