Tax
From The Report: Kenya 2014
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In conjunction with EY, OBG explores the taxation system, examining Kenya’s investor-friendly environment. OBG talks to Gitahi Gachahi, CEO, EY Eastern Africa, on the benefits of a regional Customs union.

Articles from this Chapter

Overview

The nation’s tax law in detail
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Kenya has a broad taxation system covering income tax, value-added tax (VAT), and Customs and excise duty. These are governed by independent legislations that make provisions for the charge, assessment and collection of the respective taxes. Corporate governance is also at the core of businesses’ operations. Corporate Entities The operation of corporate entities in Kenya is governed by certain rules and regulations. A corporate entity which intends to conduct business in the country can either…

Analysis

Modernising tax laws and offering investment incentives
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Taxation is the major source of government revenue in Kenya. Over the past few years, the government through the Kenya Revenue Authority (KRA) – the body mandated to administer and collect taxes on behalf of the government – has stepped up efforts to widen the tax base. Kenya, like most African countries, operates a source- and partly residency-based taxation system. Under the source-based system, taxation is levied on all income derived or accrued in Kenya irrespective of the residence of the…

Viewpoint

Gitahi Gachahi, CEO, EY Eastern Africa, on the benefits of a regional Customs union
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The advent of a single Customs territory in East Africa (EA) has heralded a new dawn for importers in the region, with assessment and collection of taxes taking place in the country of destination before the cargo is released from the first port of entry. This is a major milestone in the region’s bid to attain a Customs union. With an estimated combined population of 130m, the EA region is a sizeable market. Under this system, importers and manufacturers alike are likely to find it easier to access…