Members of Parliament have expressed their backing for new tax regulations aimed at churches, NGOs, and other entities currently exempt from taxation.
The National Assembly Committee on Delegated Legislation, led by Ainabkoi MP Samuel Chepkonga, approved the Income Tax Regulations Bill (Charitable Organizations and Donations Exemptions) 2024 during a session with senior officials from the Kenya Revenue Authority (KRA).
This legislation, introduced by former Treasury Cabinet Secretary Prof. Njuguna Ndung’u, seeks to clarify the criteria that charitable organizations must fulfill to qualify for tax exemptions on their income, as well as define the types of donations eligible for tax deductions.
During the committee meeting, KRA Commissioner General Humphrey Wattanga brought to the Committee’s attention that several churches and NGOs are capitalizing on activities that stray from their intended charitable missions.
“Numerous tax-exempt organizations are venturing into businesses that do not align with their foundational charitable purposes, without reinvesting any profits back into their primary goals,” Wattanga expressed.
KRA Deputy Commissioner Maurice Oray supported Wattanga’s remarks, emphasizing that while certain organizations enjoy tax-exempt status, there is a pressing need for tighter regulations.
Following these discussions, the Committee approved the proposed tax recommendations. “We have thoroughly examined the regulations and believe they are in compliance with the law,” Chepkonga declared during the meeting.
