Kenya Finance Bill 2025/6 props

[Nefertiti]

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Sorry I picked this off a Riggy nonsense thread, but the Finance Bill 2025 has some good stuff:


✔Deductibles - SHA/SHIF, housing levy, pensioner contributions exempted.
✔Digital - 20% tax on Big Tech. About time but I wonder how Trump will react if he gets a whiff of this.
?M-Pesa, Eazzy, Airtel Money, Pesa-link, etc - 10%
✔Alcohol & betting ads - 15%
?Imported sugar - 5% - looks low not sure
✔VAT registration - MSME with <8m revenues p.a. exempted. Was 5m cap before.

The Finance Bill 2025 proposes several key changes to enhance tax collection and simplify compliance.

It introduces tax deductibility for contributions to the Social Health Insurance Fund, affordable housing levy, and post-retirement medical funds, which could reduce taxable income for contributors.

The bill also plans to replace the current 1.5 per cent Digital Services Tax with a 20 per cent Significant Economic Presence Tax targeting foreign digital businesses, broadening the tax base.

Excise duties are adjusted, including a 10 per cent levy on money transfer services, 15 per cent on alcohol and betting advertisements, and 5 per cent on imported sugar, except for pharmaceutical use.

The VAT registration threshold is raised from Sh5 million to Sh8 million to ease the burden on smaller businesses.

Additionally, the Kenya Revenue Authority will have greater access to financial data, such as mobile money statements, to better detect tax evasion. These proposals aim to strengthen revenue but have raised concerns over privacy and business impact.

https://www.the-star.co.ke/news/2025-06-02-gachagua-calls-for-immediate-release-of-rose-njeri

[Kadudu]

Ujinga! So if Pundit sends his mpango 10k for services rendered she has to pay 1k taxes. For what?

The Finance Bill 2025 proposes several key changes to enhance tax collection and simplify compliance.

It introduces tax deductibility for contributions to the Social Health Insurance Fund, affordable housing levy, and post-retirement medical funds, which could reduce taxable income for contributors.

The bill also plans to replace the current 1.5 per cent Digital Services Tax with a 20 per cent Significant Economic Presence Tax targeting foreign digital businesses, broadening the tax base.

Excise duties are adjusted, including a 10 per cent levy on money transfer services, 15 per cent on alcohol and betting advertisements, and 5 per cent on imported sugar, except for pharmaceutical use.

The VAT registration threshold is raised from Sh5 million to Sh8 million to ease the burden on smaller businesses.

Additionally, the Kenya Revenue Authority will have greater access to financial data, such as mobile money statements, to better detect tax evasion. These proposals aim to strengthen revenue but have raised concerns over privacy and business impact.

[Nefertiti]

Hujambo dada. Habari ya Ujerumani?

Welcome to the world... tax and death are certain. Transaction taxes are applied all over the world.

In Ruto's maiden SotN address in the joint parliament, he listed taxes as thus:

     1) transactions
     2) consumption
     3) income
     4) assets/wealth

He said Kenyan taxes were bottom-heavy i.e. the poor paid more. Tax decreases 1 towards 4. He said it should be the reverse - top-heavy - the rich should pay more on their wealth/assets.

That noble pledge has since poured through the reality cleft into the political morass.

Ujinga! So if Pundit sends his mpango 10k for services rendered she has to pay 1k taxes. For what?

The Finance Bill 2025 proposes several key changes to enhance tax collection and simplify compliance.

It introduces tax deductibility for contributions to the Social Health Insurance Fund, affordable housing levy, and post-retirement medical funds, which could reduce taxable income for contributors.

The bill also plans to replace the current 1.5 per cent Digital Services Tax with a 20 per cent Significant Economic Presence Tax targeting foreign digital businesses, broadening the tax base.

Excise duties are adjusted, including a 10 per cent levy on money transfer services, 15 per cent on alcohol and betting advertisements, and 5 per cent on imported sugar, except for pharmaceutical use.

The VAT registration threshold is raised from Sh5 million to Sh8 million to ease the burden on smaller businesses.

Additionally, the Kenya Revenue Authority will have greater access to financial data, such as mobile money statements, to better detect tax evasion. These proposals aim to strengthen revenue but have raised concerns over privacy and business impact.

[Kadudu]

Wewe ni mjinga wa kwanza hii duniani.

Was I born yesterday? I transact money several times in a month for years. Never have I paid 10% for a transaction. Transaction fees are paid, but not a tax. If I pay my electricity bill through mpesa, why should I pay 10% on top? The electricity is already taxed. The bank that charges me transaction fees pays taxes. Do not support KK regime blindly. This will push the economy back to cash economy.

Hujambo dada. Habari ya Ujerumani?

Welcome to the world... tax and death are certain. Transaction taxes are applied all over the world.

In Ruto's maiden SotN address in the joint parliament, he listed taxes as thus:

     1) transactions
     2) consumption
     3) income
     4) assets/wealth

He said Kenyan taxes were bottom-heavy i.e. the poor paid more. Tax decreases 1 towards 4. He said it should be the reverse - top-heavy - the rich should pay more on their wealth/assets.

That noble pledge has since poured through the reality cleft into the political morass.

[Nefertiti]

I don't agree with it that is why I put a question mark (alama ya ulizo au duku duku).

That said, I believe Kenyans have been paying transaction tax on top of transaction fees for years. That 100bob you pay to send $1k actually includes some tax.

Whether this will push the economy back to cash economy remains to be seen...

I see Rose Njeri - the activist who built a webpage for Kenyans to reject this bill - has been released by court on cash bail. 💪💪💪💪💪

Sorry I picked this off a Riggy nonsense thread, but the Finance Bill 2025 has some good stuff:


✔Deductibles - SHA/SHIF, housing levy, pensioner contributions exempted.
✔Digital - 20% tax on Big Tech. About time but I wonder how Trump will react if he gets a whiff of this.
?M-Pesa, Eazzy, Airtel Money, Pesa-link, etc - 10%
✔Alcohol & betting ads - 15%
?Imported sugar - 5% - looks low not sure
✔VAT registration - MSME with <8m revenues p.a. exempted. Was 5m cap before.

Wewe ni mjinga wa kwanza hii duniani.

Was I born yesterday? I transact money several times in a month for years. Never have I paid 10% for a transaction. Transaction fees are paid, but not a tax. If I pay my electricity bill through mpesa, why should I pay 10% on top? The electricity is already taxed. The bank that charges me transaction fees pays taxes. Do not support KK regime blindly. This will push the economy back to cash economy.

Hujambo dada. Habari ya Ujerumani?

Welcome to the world... tax and death are certain. Transaction taxes are applied all over the world.

In Ruto's maiden SotN address in the joint parliament, he listed taxes as thus:

     1) transactions
     2) consumption
     3) income
     4) assets/wealth

He said Kenyan taxes were bottom-heavy i.e. the poor paid more. Tax decreases 1 towards 4. He said it should be the reverse - top-heavy - the rich should pay more on their wealth/assets.

That noble pledge has since poured through the reality cleft into the political morass.

[gout]

The alligator is saying the crocodile is going far with the script of uneconomical PPP Mojaway and SGR by forced investment of pensions in another unviable expressway.   

https://www.msn.com/en-xl/africa/kenya/ndindi-nyoro-slams-treasury-over-risky-loans-misuse-of-pension-funds-not-viable/ar-AA1G0pc9

[gout]

Very good mazematix error to use in jaba bases all over the country.

Since the introduction of excise duty based on the alcohol content, the standard rate is Sh22.50 per centilitre of pure alcohol for beer.

With the beer made from locally produced agricultural products enjoying a relief of up to 80 percent, it means Senator Keg is exempted from paying excise duty of Sh18 per centilitre, or Sh1,800 per litre.
Since the introduction of excise duty based on the alcohol content, the standard rate is Sh22.50 per centilitre of pure alcohol for beer.

With the beer made from locally produced agricultural products enjoying a relief of up to 80 percent, it means Senator Keg is exempted from paying excise duty of Sh18 per centilitre, or Sh1,800 per litre.

https://www.businessdailyafrica.com/bd/corporate/industry/manufacturing/senator-keg-prices-set-to-rise-first-time-in-eight-years-5067644