This archive report was first published on 23 September 2019.
Kenya's National Treasury Cabinet Secretary Henry Rotich has unveiled a new budget that places a significant burden on low-income earners and gamblers. The government aims to raise 1.8 trillion shillings, a substantial portion of the planned 3.02 trillion shillings in spending.
Security guards, drivers, cleaners, promotional sales agents, and catering staff are among the lowest-income earners who will be affected by the new tax measures. Employers of these individuals will be required to pay a 15 percent taxation, which will be deducted from their employees' salaries whenever they file their annual returns.
Rotich stated that the purpose of the proposals is to expand the scope of withholding tax and enhance tax compliance among individuals offering these services.
Gamblers and sports bettors will also face a 10 percent excise duty on the amount they bet, regardless of the outcome. This means that for a minimum bet of 50 shillings, only 40 shillings will be used for the bet, with the remaining 10 shillings going to the Kenya Revenue Authority (KRA).
Rotich cited the negative social effects of betting on young and vulnerable members of society as the reason for introducing this tax.
Alcoholic drinkers and cigarette smokers will also face increased excise duties. A 750ml bottle of wine will now have an excise duty of 136 shillings, an increase of 18 shillings from the current rate. The duty on a bottle of whiskey will rise by 24 shillings to 182 shillings for a 750ml bottle, while smokers will face an increase of 8 shillings to 61 shillings per packet of 20 cigarettes.
