The recently tabled Finance Bill, 2024, proposes significant amendments to Kenya’s tax-related laws, aiming to widen the tax base and meet the projected budget revenues for the Financial Year 2024/2025. Key measures include the expansion of the definitions of “digital content monetization” and “digital marketplace”, the introduction of motor vehicle tax payable at the time of insurance issuance, and the implementation of advance pricing agreements to reform transfer pricing guidelines.

It is important to note that the proposed provisions within the Bill are subject to change as they undergo public participation and parliamentary debate before becoming the Finance Act 2024. Stakeholders are encouraged to participate in the public consultation process by submitting their comments to the National Assembly Departmental Committee on Finance and Economic Planning.

The Finance Bill also aligns with the Medium–Term Revenue Strategy (MTRS) and the National Tax Policy, setting the stage for future tax reforms and providing certainty in the country’s tax regime.

This analysis provides a high-level overview of the proposed changes to the Income Tax Act, Value Added Tax Act, and other tax-related laws. It is essential to remember that the analysis is subject to change and does not constitute specific tax advice for any individual or group. For detailed insights, seeking specific tax advice on a case-by-case basis is recommended.

For a detailed breakdown of the proposed changes, including amendments to the Income Tax Act and the Value Added Tax Act, refer to the full report on the Finance Bill, 2024 available here. Stay tuned for further developments as the Bill progresses through the legislative process.

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