CS Kagwe targets taxes, VAT refund delays hurting flower farmers
The Agriculture Cabinet Secretary said the Government was keen to resolve the VAT refund issue and would raise the matter with the Treasury.
The Agriculture Cabinet Secretary said the Government was keen to resolve the VAT refund issue and would raise the matter with the Treasury.
The reminder covers several categories of tax obligations affecting businesses, landlords and individuals engaged in taxable activities
Income tax has taken the biggest cut, with the projected collection reduced by Sh78.6 billion from Sh1.384 trillion to Sh1.305 trillion. The income tax category, which includes corporate taxes paid on profits as well as Pay As You Earn (PAYE) deducted from workers' salaries and wages, remains the largest source of the expected revenue decline.
The negotiations, currently underway in New York under the United Nations Framework Convention on International Tax Cooperation, are seeking to reshape international tax rules by giving member states a greater role in deciding how multinational companies are taxed
In a statement released on Wednesday, the motorists' lobby described EPRA's decision as "an economic betrayal of Kenyans", arguing that it was the second consecutive monthly review in which motorists had been denied the full benefit of favourable international oil prices.
Speaking on Tuesday, Wandayi said Kenya's government-to-government (G2G) fuel import arrangement had shielded the country from supply disruptions and rising freight costs triggered by escalating military tensions around the Strait of Hormuz, one of the world's busiest oil shipping routes.
KRA also surpassed its customs revenue target after collecting Sh988.8 billion against a target of Sh980.8 billion, achieving a performance rate of 100.8 per cent. Domestic revenue reached Sh1.851 trillion, equivalent to 93 per cent of the target for the financial year.
Deputy government spokesperson explained that some narratives presented during the debate were inaccurate and contributed to confusion about the actual contents of the Finance Bill 2026
The National Assembly passed the Finance Bill, 2026, in its Third Reading with 122 votes in favour against 40 nays. The vote is among efforts by the government to fund the Sh4.8 trillion budget for the 2026-27 fiscal year.
The decision keeps the products taxed at zero percent VAT, meaning no tax is added on sale, a move aimed at keeping them affordable and supporting local production.
Under the proposal, core transfer services will be exempt from VAT, while services such as cash handling, payment processing, settlement, merchant acquiring, gateway and aggregation services will still attract the tax.
With the latest position, the total tax burden on imported mobile phones is expected to ease only slightly, dropping to about 50 per cent from the current 54.5 per cent, rather than the sharp reduction that had been anticipated.