In a bid to increase home ownership in the country as envisaged in the housing pillar under the Big Four Agenda, section 38 of the Retirement Benefits Act (1997) was amended to allow access of retirement benefits for purposes of purchase of a residential house. The new tax law amends several statutes that are intended to help cushion the Kenyan economy and her citizens from effects of the coronavirus pandemic that halted normal operations https://turbo-tax.org/president-kenyatta-signs-tax-laws/ in Kenya from Friday, March 13 when the first COVID-19 case was reported. The Bill, which was presented to the president for signature by National Assembly Speaker Justin Muturi was passed by Parliament on Wednesday, April 22. It took steps to do so with its initial version of the 2021 Finance Bill, which would have raised the rate back to 20%. However, the Finance Committee again made changes, this time reducing the stake levy to 7.5%.

• Prices are higher than they were before elections,” hairdresser Evelyne Adhiambo said.
• Investors who use dollars as their base currency would have lost 5.7 percent on Kenyan bonds since the start of the year, currently one of the worst performances across emerging markets this year barring the main trouble spots of Turkey, Argentina and Venezuela.
• In the August 8, 2017, presidential election, Kenyatta was reelected with more than 54 percent of the vote.
• As this was above the 50% plus 1 vote threshold, he won the election in the first round thus evading a run-off between the top two candidates.[45] He was, therefore, declared the fourth President of the Republic of Kenya by the Independent Electoral and Boundaries Commission (IEBC).
• Income tax rates have increased from the existing 30% to 32.5% for individuals making Ksh500,000 ($3,600) per month and to 35% for those making Ksh800,000 ($5,700).
• The next year, he was moved from the ministry of trade and became the minister of finance.

The doubling of the tax on petroleum products, from 8% to 16%, is expected to have a ripple effect on East Africa’s economic hub, with the prices of goods and services expected to increase. NAIROBI, Kenya — Kenyans are preparing for tough times after lawmakers approved tax increases that are even unpopular with supporters of the president who once vowed to reduce the cost of living. Uhuru Kenyatta’s party, The National Alliance (TNA) joined William Ruto’s United Republican Party (URP), Najib Balala’s Republican Congress Party (RCP) and Charity Ngilu’s National Rainbow Coalition party to form the Jubilee Alliance coalition. Various opinion polls prior to the election placed Uhuru as one of the main contenders, and his Jubilee Alliance as among the most popular.

Kenyan president says Nairobi attack over as ‘terrorists’ killed

Kenyans have been angered by the new taxes, accusing authorities of forcing them to dig deeper into their pockets, while the government presides over wastage of its revenue through theft and corruption. The increased tax benefits the Kenya Revenue Authority by increasing revenue collection, but it disadvantages real estate developers. This action was largely considered as a test run for a larger plan to improve its performance in collecting taxes.

The bill also adds other new taxes, and authorises revenue collection and spending through June 2019. NAIROBI, Kenyan President Uhuru Kenyatta has signed a new finance bill into law, officially introducing a series of new taxes, including one on fuel, which have led to public anger and strikes. The new law would increase taxes on essential commodities and services, including food and mobile money transfers, and is projected to earn more than $2.1 billion. Although the trial of his deputy president, Ruto, began in September 2013, Kenyatta’s trial was repeatedly delayed.

President Kenyatta signs five Bills into law

However, clearly it will create pronounced ripple effects through the economy in that it will raise prices across the economy and further crimp and reduce incomes, which have already been under downside pressure,” Satchu said. The previous administration avoided raising it by introducing subsidies to cushion consumers. People earning above 500,000 shillings ($3,500) now will pay 32.5% in taxes, and those making above 800,000 shillings will pay 35%.

• The country’s excise tax on stakes has been a major point of controversy in recent years, starting in 2019 when the treasury raised the rate from 10% to 20%.
• Citing what he deemed irregularities with the election, he filed a challenge to the results with Kenya’s Supreme Court.
• In a bid to increase home ownership in the country as envisaged in the housing pillar under the Big Four Agenda, section 38 of the Retirement Benefits Act (1997) was amended to allow access of retirement benefits for purposes of purchase of a residential house.
• Korir, who just three weeks ago worked as a Director of Agriculture in West Pokot County, recently won the Mega SportPesa Jackpot of Sh208 Million (USD 2.08 Million).
• Those earning above the new threshold would benefit from a PAYE tax reduction from 30% to 25%.
• This action was largely considered as a test run for a larger plan to improve its performance in collecting taxes.
• We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons.

His nearest challenger was again Odinga—this time representing a coalition of opposition parties called the National Super Alliance (NASA)—who trailed him with about 45 percent. As Kenyatta was constitutionally obligated to step down after serving two terms, he would not be able to stand in the presidential poll. Undaunted, Ruto stood as the presidential candidate for the United Democratic Alliance party, part of the broader Kenya Kwanza alliance, and was elected by a narrow margin. On 1 September 2017, the court declared the election invalid and ordered a new presidential election to take place within 60 days from the day of the ruling.[7] A new presidential election was held on 26 October, which he won, with 39.03% electoral voter participation. The ruling criticized the conduct of the IEBC and noted many concerns with the vote tallying and transmission process cited by NASA that the judges felt had affected the validity of the election. In a stunning turn of events, however, Kenyatta’s reelection was overturned on September 1 when the Supreme Court nullified the results of the presidential poll and ordered a new election, which was to be held within 60 days.

Political life

This change was ultimately approved by Parliament and signed into law by Kenyatta, who had previously expressed strong opposition to the industry. New taxes which take effect from today are expected to raise the cost of living among Kenyans squeezing both personal and household incomes further. This tax was increased from 10% in 2019 in a move that led to operators Sportpesa and Betin leaving the market, on the back of a different dispute over another 20% tax on stakes.

The bill was passed by parliament on Thursday during an acrimonious session marked by loud protests from lawmakers opposed to a new 8 percent value-added tax on all petroleum products. The new law ― expected to generate more than $2.1 billion ― will hike taxes on basic goods and services https://turbo-tax.org/ including food and mobile money transfers. Subsequently, Uhuru Kenyatta was Minister of Finance from 2009 to 2012,while remaining Deputy Prime Minister. Parliament approved the bill with the lower rate on Thursday during an acrimonious session marked by loud protests from lawmakers.

At least a dozen protesters were also arrested this month during a march against the tax proposals. Kenya is now sitting on a public debt mountain of almost $70 billion or about 67 percent of gross domestic product (GDP), and its repayment costs have jumped as the shilling sinks to record lows of around 140 to the dollar. Ruto ― who took office in September after a bitterly fought election — is seeking to fill the government’s depleted coffers and repair a heavily-indebted economy inherited from his predecessor Uhuru Kenyatta, who splurged on major infrastructure projects. The Kenyan president has been criticized for reneging on pledges he made during the August 2022 election campaign, when he positioned himself as the ally of the underprivileged in Kenya and promised to raise their standard of living.

1,266,794,262,462 required to meet public expenditure during the financial year ending on 30th June, 2018. The new tax package was approved by parliament last week and will double the tax on fuel to 16 percent and introduce a new housing levy, a move expected to have a ripple effect in a country hamstrung by high inflation. As was the case with the August election, the validity of the October poll was challenged, though this time NASA was not one of the parties that filed petitions with the Supreme Court. The court dismissed the challenges and upheld Kenyatta’s victory, paving the way for him to be sworn in for his second term on November 28, 2017. Ruto’s election win was largely attributed to his appeal to voters as a fellow “hustler” who rose from a humble background to senior roles in government, including as Kenyatta’s vice president.

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