• Several proposals to amend the VAT act on several clauses, some likely to attract VAT. For instance, Air Ticketing Services offered by travelling agents currently exempted from tax is being proposed to be subjected to a 16% tax. Entry fees to National Parks and Game Reserves, currently exempted from tax, will be charged 16%. Tour operator services presently exempted from the tax will attract 16%. Pest control products and fertilizers currently zero-rated will be exempted from VAT, and the same will happen to raw materials used to process or manufacture these products. 

The Tax Laws Amendment Bill 2024 aims to raise to 178 Billion Shillings by amending several laws touching on Value Added Tax (VAT), excise tax, and income tax. The tax bill proposed the introduction of a new tax, a significant presence tax.

This tax will affect non-resident persons whose income is derived in Kenya. These include businesses on the digital platform or digital market space, such as the ride-hailing commonly used by Kenyans as taxis.

The taxable profit for these institutions will be 10% of gross turnover. This means that the money that these institutions collect, 10%, will be considered by the government to be their taxable profit and, therefore, be subjected to a percentage. This tax will replace the Digital Service Tax.

The Minimum Top-up Tax is making its way back to the conversation. It proposes that if the effective tax rate paid by an individual or an organization running a business is below 15%, they will be required to pay a balance. This will be calculated by dividing the total tax paid by the total net income of the organization or individual multiplied by 100 to give the percentage.

Several proposals to amend the VAT act on several clauses are likely to attract VAT. For instance, Air Ticketing Services offered by travelling agents currently exempted from tax is being proposed to be subjected to a 16% tax. Entry fees to National Parks and Game Reserves, currently exempted from tax, will be charged 16%. Tour operator services presently exempted from the tax will attract 16%. Pest control products and fertilizers currently zero-rated will be exempted from VAT, and the same will happen to raw materials used to process or manufacture these products.

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The government is also proposing some allowable deductions like the housing levy. So far, people contributing to this have received affordable housing relief. This is being taken away, but has the housing levy deducted instead? Social Health Insurance Fund (SHIF) deductions will also be allowable deductions, meaning that one will be taxed on their income after these deductions have been taken off their gross pay.

Even as public participation on the tax bill 2024 is ongoing across most parts of the country, some citizens have criticized this move. Speaking during an interview, Abraham Ochieng, the Senior Programs Officer at Bajeti Hub stated that Kenyans need more than just a week to understand the document and what is being proposed so that when it comes to public engagement, they can engage at a level of information.