- In June 2024, Kenya faced a fiscal crisis when the President rejected the Finance Bill entirely.
- The rejection led to a national discussion on the budget-making process and its disconnect from the public.
- The 2025 Finance Bill is under scrutiny to avoid repeating past mistakes.
- Key issues include expanding the tax base without public support and increasing compliance costs.
- The 2024 Bill’s rapid tax base expansion led to protests and its rejection.
- The 2025 Bill proposes changes affecting businesses and individuals, such as repealing incentives and broadening taxes.
- Compliance costs are rising, burdening consumers and small businesses with complex procedures.
- The tax system is perceived as increasingly challenging, especially for those in the informal economy.
Source: mondaq.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
