As the largest economy in the EAC and COMESA in terms of GDP, Kenya has positioned itself as a major economic power in sub-Saharan Africa. Traditionally a largely agrarian economy, Kenya has quickly entrenched its position as a manufacturing, logistics and technology hub in the region, and this diversification forms a solid platform from which the government can generate economic growth over the c
In conjunction with Ernst & Young, this chapter explores the taxation system and Kenya’s efforts to build an investor-friendly environment. It also contains a viewpoint with Gitahi Gachahi, CEO, EY Eastern Africa.…
Viewpoint: Gitahi Gachahi The simplification of a tax system goes a long way towards ensuring compliance. There are two distinct ways of simplifying a tax system – enhanced legislation and effective tax collection – and their execution must be coordinated for exemplary results to be attained. Good legislation is well thought out and customised to the dynamics of a country’s business models.…
Kenya has a broad taxation system covering income tax, value-added tax (VAT), and Customs and excise duties. These are governed by independent legislation that establish provisions for the charge, assessment and collection of the respective taxes. The Kenya Revenue Authority (KRA) employs different divisions that deal with the three areas, undertaking reviews on companies to confirm they are…
In mid-June 2018 the cabinet secretary of the National Treasury unveiled a comprehensive raft of tax administration measures tailored towards financing the government’s KSh3trn ($29.4bn) budget for FY 2018/19. Some of the measures were a reiteration of proposals envisaged in the Income Tax Bill, 2018, the Tax Laws (Amendment) Bill of that same year, and recommendations from the 2018 Budget…
Tanzania has a broad taxation system covering income taxes, value-added tax (VAT), stamp duty, and Customs and excise duties. These are governed by laws that provide for the charge, assessment and collection of taxes. The Tanzania Revenue Authority (TRA) may conduct tax audits of individuals and entities to confirm that they are compliant and paying the correct taxes. Corporations Standard…
Taxes constitute the largest source of government income and the Kenya Revenue Authority (KRA) is assigned the task of revenue collection. The country has experienced a boom in the construction sector over the last few years, but this has not led to a proportionate growth in tax revenue generated by rental income. Various measures have been put in place to encourage voluntary compliance by landlords,…
Viewpoint: Gitahi Gachahi Special Economic Zones (SEZs) are proliferating across the globe. Countries around the world are increasingly exploring the possibilities presented by SEZs and attempting to harness their potential to catalyse economic development and structural transformation. A recent World Bank study of six African zone programmes (Ghana, Kenya, Lesotho, Nigeria, Senegal and Tanzania)…
The largest economy in the EAC, Kenya is a major player in both the region and sub-Saharan Africa as a whole. Over the past few decades its market has transformed from being largely agrarian into one of the most diversified and innovative on the continent, even developing a thriving technology sector that some have dubbed the Silicon Savannah. However, the nation is not without its challenges, and
In conjunction with EY, OBG explores the taxation system, examining Kenya’s investor-friendly environment. It also features an interview with Gitahi Gachahi, CEO, EY Eastern Africa, on creating an enabling environment for foreign direct investment in Kenya.…
