The Kenya Treasury Secretary has proposed changes to the Finance Bill, 2023 that will be tabled before Parliament for debate.
Recent reform steps To help increase the level of domestic revenue mobilisation in Kenya, the Kenya Revenue Authority (KRA) implemented a tax base expansion.
The Bill seeks to impose a 5% withholding tax (WHT) on local sales promotion, marketing and advertising services offered by resident persons. In 2020, a 20% WHT was introduced on sales promotion, marketing and advertising services rendered by nonresident persons.
The Finance Bill 2023 seeks to amend various laws relating to taxes and duties to increase government revenues from taxes collected. This includes Income tax that increases gross sales from 1% to 3%; digital assets are proposed with a tax of 3% levy on the transfer charges applied during an exchange of the assets.