Kenya’s Treasury 2024 budget proposes 2% hike to 18%
The ruling Kenya Kwanza coalition has proposed a 2% rise in the standard VAT rate from 16% to 18% in the Draft Medium-term Debt Strategy for the period 2024-25 and 2026-27. The rise would be to help meet the costs of the government’s major spending plans following the passing in June of the country’s largest budget. The country also faces a potential debt crunch in 2024.
A rise to 18% would put Kenya in line with neighbouring countries and harmonisation of the country’s VAT with the East African Community member states:
- Uganda: 18%
- Tanzania: 18%
- Rwanda: 18%
- Burundi: 18%
- Ethiopia: 15%
VAT Calc’s global VAT and GST rates online database provides a free look-up rate search for over 200 taxing jurisdictions.
COVID 2020 VAT cut to 14%
The rate was temporarily reduced to 14% on 1 April 2020 to help support businesses and consumers as the COVID-19 pandemic struck in 2020. The African country also reduced its corporate income tax rate from 30% to 25%.
The 8% reduced rate has remained unchanged during the period. This is payable on the following supplies:
- Motor fuel (regular and premium gasoline)
- Aviation fuel
- Gas oil
- Natural gas
