Experts have expressed deep concerns over provisions in the Finance Bill, 2025, that could negatively impact businesses and cash flow in the economy.
Key among these is the reclassification of products from zero-rated to tax-exempt, the increase in excise duty on imported packaging materials from outside the East African Community, the removal of the 15 per cent corporate tax incentive for local assemblers of motor vehicles, and granting Kenya Revenue Authority access to trade secrets and personal data for integration into the electronic tax management system.
They note that the government's spending plan for the upcoming financial year includes no incentives aimed at improving the living standards of Kenyans, even as the government steers clear of direct taxation. "The move to make products tax-exempt will increase their cost.
And as long as Kenya does not have a mechanism to claim refunds on inputs, products will remain expensive," said Kenya Association of Manufacturers (KAM) Chief Executive Officer Tobias Alando, ahead of the Budget Statement reading last Thursday.
