Kenya to tax car owners Ksh.5,000 per passenger seat in Finance Bill 2023

Kenyan government is proposing to tax private car owners based on passenger capacity, on top of a lined up tax proposals including the controversial Housing Fund.

This is in line with the Finance Bill, 2023 (the Bill) which was presented to the National Assembly on May 4, 2023, by the National Treasury Cabinet Secretary Njuguna Ndungu.

Amendment of the Third Schedule to Cap 470 under the third schedule to the income tax, the government has proposed a Ksh.100 tax on saloon cars based on the number of passengers per vehicle.

Besides saloon cars, station wagons, mini buses (matatus), buses and coaches, will also attract Ksh.100 tax on a monthly basis or Ksh.5,000 per annum or whichever is higher.

The Bill also proposes a Ksh.3,000 per tonne or Ksh.5,000 per annum tax on vans, pick-ups, trucks, prime movers, trailers and lorries.

Should the Bill sail through, every car owner in the country will be mandated to honour these taxes whether a car or truck is in use or not.

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