Category Taxation in Kenya

Kenya’s Gambling Taxes Are Too High

January 10, 2018 Taxation in Kenya

Online blackjackNAIROBI – Kenya’s heavy-handed approach to taxing gambling operators may drive some businesses out of the country.

A new report issued by the international consultancy PricewaterhouseCoopers shows that the tax burden faced by gambling operators in Kenya is higher than any of its regional neighbours and most developed countries.

As of January 1st 2018 the rate of tax faced by gambling companies is 35 percent on all gambling revenues, with no allowances for deductions.

In comparison, the rate levied in Tanzania, South Africa, Uganda, and Rwanda, are 6 percent, 9.6 percent, 13 percent, and 20 percent respectively.

Similarly, Germany, the UK, and Canada have rates of 5 percent, 15 percent, and 20 percent.

The treasury claims that the high rate of tax is needed to protect vulnerable people...

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Kenya’s Tax Revenue Slowing Down

December 13, 2017 Taxation in Kenya

Kenyan tax revenueNAIROBI – Tac collections in Kenya have slowed down, when compared to growth in the economy.

New information released by the World Bank in its 16th Kenya Economic Update report has shown that the tax-to-GDP ratio in Kenya has fallen to its lowest level in a decade.

Over the 2016/17 financial year, the tax-to-GDP ratio fell to approximately 16.9 percent, even though the total level of revenues rose by 13.3 percent.

However, the growth in the level of tax revenues was outpaced by growth of the nominal GDP levels, which reached 14.9 percent in the same time period.

The World Bank explained that while the economy in Kenya grew at an impressive rate, the government coffers didn’t enjoy the same positive boost due to inadequate efforts to ensure tax compliance.

It was noted in particular tha...

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Kenya to Launch Tax Amnesty

March 30, 2017 Taxation in Kenya

Kenyan tax amnestyNAIROBI – Kenya is offering a generous tax amnesty to local taxpayers, however, those skipping out on the offer will face investigation.

On March 28th the Deputy Commissioner of the Kenya revenue Agency James Ojee announced that the tax authority would be opening a tax amnesty to allow national tax payers to come clean about their hidden offshore wealth.

Kenyan taxpayers will now be offered the opportunity to file by December 31st 2017 the correct tax returns for the year ending December 31st 2016.

Taxpayers who make use of the tax amnesty to disclose their businesses, property, income and assets overseas, will enjoy a waiver for the taxes, interests and penalties for the years up, and including, to 2016.

Those who do not make use of the tax amnesty will face an investigation to determin...

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Kenya Should Drop Tax Incentives

March 27, 2015 Taxation in Kenya

NAIROBI – International investors coming to kenya are not doing so because of tax incentives, and such tax breaks should be dropped.

In a speech delivered at a conference in Kwale on March 25th the Commissioner General of the Kenya Revenue Authority John Njiraini called for the government to retract the tax breaks provided to foreign investors.

Currently, foreign investors operating in the Export Processing Zones can enjoy a 10 year tax holiday, along with duty free imports, and a 100 percent capital investment deduction on certain activities.

The Commissioner General claimed that the majority of investors who come to the country are not convinced to do so due to the tax breaks but instead enjoy the country’s political stability, security, access to the local and regional market, the lo...

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East Africa Looks At Tax Harmonization

October 14, 2014 Taxation in Kenya

NAIROBI – In less than one year the five countries of the Eastern African Community will have a harmonized tax system.

At an event to mark the launch of Taxpayers Week in Kenya on October 13th the Tourism Cabinet Secretary Phyllis Kandie announced that the process of harmonizing taxes among the countries of the East African Community should be completed by April 2015.

During her speech she explained that the governments of Burundi, Kenya, Rwanda, Tanzania and Uganda are pursuing the implementation of a “…the harmonization will see a fully operational Single Customs Territory which was hampered by the absence of a harmonised tax regime.”

The process of facilitating a harmonized tax system is currently ongoing, with Kenya, Uganda and Rwanda recently implementing matching rates of exci...

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