This archive report was first published on 25 June 2020.
On June 25, 2020, Kenya's National Assembly adopted the Finance Bill 2020 with amendments, ensuring that monthly pensions for citizens aged 65 and above remain tax-exempt.
Lawmakers had initially proposed removing the tax exemption for pensioners, but ultimately decided against it, citing concerns that this would discourage people from saving into pension schemes.
However, the bill does introduce changes to the tax on residential rental income, increasing the lower limit from Sh144,000 to Sh288,000 and the upper limit from Sh10 million to Sh15 million.
Landlords earning between Sh288,000 and Sh15 million per year will now pay a 10% tax on their gross income.
The Kenya Revenue Authority (KRA) will also receive a 2% commission on agency fees collected on behalf of county governments and government agencies.
Additionally, goods imported for specific government projects will remain exempt from tax for the duration of the project.
The bill also reduces the excise duty thresholds for certain alcoholic drinks.
