This archive report was first published on 11 July 2019.
On July 11, 2019, Kenya Revenue Authority made a significant move by refunding Sh11.1 billion in Value Added Tax (VAT) to private sector players, out of the total Sh14.2 billion owed to them in the last financial year.
Kenya Private Sector Alliance CEO Carole Kariuki confirmed receiving a letter from the taxman regarding the tax refunds payments. This move follows the presidential directive to clear Sh10.9 billion of verified refunds by the end of June 2019.
KEPSA had previously submitted requests for tax refunds in excess of Sh56.9 billion owed to its members since April 2014-October 2018. According to Kariuki, the refunds owed to manufacturers alone, amounting to Sh20 billion, would spark an annual growth of Sh50 billion in turnover in the industry, resulting in Sh6 billion in VAT collections, Sh1 billion in corporate and income taxes, and the creation of 20,000 indirect jobs.
Carole Kariuki said, "It is estimated that refunds owed to manufacturers alone, amounting to Sh20 billion, would spark an annual growth of Sh50 billion in turnover in the industry – Sh6 billion in VAT collections, Sh1 billion in corporate and income taxes and create 20,000 indirect jobs." The private sector lobby group welcomes this move, stating that it will have a positive impact on the economy.
