This archive report was first published on 2 July 2021.
On July 2, 2021, President Uhuru Kenyatta assented to the Finance Act, 2021, paving the way for the Kenya Revenue Authority to collect duties from various sectors.
The Finance Act, 2021, introduces amendments to several tax-related Acts of Parliament, including the Income Tax Act, VAT Act, and Excise Duty Act.
Some of the key changes include a 5% increase in excise duty on airtime and mobile data, which is expected to raise nearly Sh8 billion from Safaricom, Airtel, and Telkom Kenya.
Additionally, a 16% value-added tax on cooking gas will come into effect, leading to an increase in the price of the commodity.
However, the Finance Act, 2021, also reduces the tax on winnings from gambling from 20% to 7.5%, as announced in the Finance Bill, 2021.
The new tax measures are part of the government's efforts to raise monies locally to fund the Sh3.6 trillion budget for the financial year 2021/2022.
