The public participation phase for the Tax Laws Amendment Bill 2024 and the Tax Procedures Amendment Bill 2024 is reaching its conclusion this week at the Kenyatta International Conference Center (KICC) in Nairobi. This follows a series of vigorous discussions held in six counties, where citizens voiced their concerns regarding the allocation of tax revenue and ongoing issues of corruption.
Residents of Nairobi will have three days to interact with the National Assembly’s Departmental Committee on Finance and National Planning, providing their insights and submissions on the proposed amendments.
These final public participation sessions at KICC will wrap up the hearings that have already occurred in Kericho, Siaya, Isiolo, Bungoma, Taita Taveta, and Mombasa.
Among the notable proposals in the Tax Procedures Amendment Bill is the extension of the Tax Amnesty Program. If approved, this program will be available until June 30, 2025, allowing taxpayers to clear their arrears without incurring penalties.
The Tax Laws Amendment Bill 2024 also proposes several important changes, including the introduction of the Significant Economic Presence Tax (SEPT), which will replace the Digital Service Tax at a rate of 6%.
The legislation also suggests the inclusion of the Housing Levy and SHIF as permissible deductions, along with various other modifications.
Tax collection is a contentious topic in Kenya, with issues of accountability and corruption highlighted during public consultations. In regions such as Kericho and Mombasa, residents have demanded increased transparency regarding the allocation of tax funds.
Kanini Kega, a prominent figure in the discussions, stressed the importance of prudence in tax policy formulation. “We need to exercise caution with our tax strategies. Our goal is to avoid implementing harsh taxes that could deter investors and result in job losses,” Kega remarked in one of the meetings.
Kuria Kimani, Chairman of the National Assembly Finance Committee, assured the public that their feedback would be duly considered. He committed to reevaluating any proposals that might face significant opposition before they proceed further.
The Tax Laws Amendment Bill 2024 and the Tax Procedures Amendment Bill 2024 were initially presented in the National Assembly on November 13, 2024, and subsequently referred to the Departmental Committee on Finance and National Planning for additional review and reporting to the House.
