Kenya

List of Amendments in Finance Bill, 2024 After State House Meeting

The changes come even as thousands of Kenyans gathered in Nairobi’s CBD to strongly oppose the Bill, which has been termed punitive.

The Kenya Kwanza Parliamentary Group made changes after convening at State House on June 18, 2024, to discuss the latest developments regarding the Finance Bill, 2024.

The meeting, which included a briefing from the Finance Committee of the National Assembly, outlined a series of amendments to ease financial burdens for Kenyans.

Key highlights from the briefing include:

  1. Removal of the proposed 16 percent VAT on bread.
  2. Exemption of VAT on the transportation of sugar.
  3. Elimination of VAT on financial services and foreign exchange transactions.
  4. Confirmation of no increase in taxes on mobile money transfers.
  5. Removal of the 2.5 percent Motor Vehicle Tax.
  6. Excise duty on vegetable oil has been abolished.
  7. Introduction of income tax deductibility for levies on the Housing Fund and Social Health Insurance, freeing up more disposable income for employees.
  8. Implementation of the Eco Levy on imported finished products, exempting locally manufactured goods. This move aims to boost local manufacturing capacity, generate employment, and conserve foreign exchange.
  9. Exemption of the Eco Levy for locally manufactured items such as sanitary towels, diapers, phones, computers, tyres, and motorcycles.
  10. Increase in the VAT registration threshold from KSh5 million to KSh8 million, reducing the VAT registration burden for many small businesses.
  11. Repeal of the responsibility for electronic invoicing ETIMS from farmers and small businesses with turnovers below Ksh.1 million.
  12. Imposition of excise duty on imported table eggs, onions, and potatoes to safeguard local farmers.
  13. Adjustment of excise duty on alcoholic beverages based on alcohol content rather than volume, aiming for safer and more affordable alcoholic products.
  14. Increment of pension contributions exemption from Ksh.20,000 per month to Ksh.30,000.
  15. Allocation of KSh18 billion to employ all 46,000 Junior Secondary teachers on internship.
  16. Provision of funds to recruit 20,000 interns in the upcoming month, with a focus on transitioning teachers from internships to permanent and pensionable positions.
  17. Proclamation by the President that the Executive and Legislature will persist in making tough but necessary decisions for national progress, citing last year’s impactful proposals from the Finance Bill 2023.
  18. Commendation by the President for national institutions’ effective functioning in Kenya’s democratic framework, emphasizing the significance of the National Assembly’s role in amending the Finance Bill as a collaborative effort between the Executive and Legislature.

Also Read: Kenyans Likely to Flock Uganda for Alcohol Over Kenya’s Finance Bill 2024

The changes come even as thousands of Kenyans gathered in Nairobi’s CBD to strongly oppose the Bill, which has been termed punitive.

List of Amendments in Finance Bill, 2024 After State House Meeting
Kenyans gathered outside Parliament building in Nairobi CBD to protest against controversial Finance Bill 2024 on June 18 2024

The National Assembly has already made changes to the timeline for discussing the Bill to June 19, 2024, from morning hours at 9:30 AM till late at 9:00 PM.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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