Kenya finance bill 2025
Kenya’s Treasury has proposed a new law in the Finance Bill 2025 that would let KRA access private customer data like bank and M-Pesa details by removing current legal protections. If passed, KRA won’t need a court order to get this info from businesses.
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Kenya’s Treasury has proposed raising the fringe benefit tax from 9% to 30%, matching the corporate tax rate. This may make it harder for employers to offer staff loans and other benefits.
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The Treasury proposes removing the VAT exemption on locally assembled mobile phones, potentially raising costs for consumers.
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The proposed Finance Bill 2025 seeks to raise the tax-free per diem allowance for high-income earners from Sh2,000 to Sh10,000. This change would benefit senior government officials and corporate executives during business travel.
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The government wants to start charging 16% VAT on internet TV, online radio, music, films, e-learning, and software updates. If passed, this will make streaming and digital content more expensive for users.
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Kenya’s Treasury has proposed reducing the Export & Investment Promotion Levy from 17.5% to 5% for some construction products, including semi-finished iron and steel.
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The National Treasury’s proposal in the Finance Bill 2025 to remove zero-rating on key items like drugs, animal feed, electric buses, and solar batteries could increase the cost of living.
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Kenya’s Treasury has proposed extending the KRA tax refund processing time from 90 to 120 days and the audit timeline from 120 to 180 days under the Finance Bill 2025. This could worsen cash flow challenges for taxpayers.
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The Finance Bill 2025 also proposes granting the Treasury CS the power to waive penalties or interest resulting from electronic tax system errors, delays in updates, or duplicated penalties.
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