Income Tax Bill

As Kenya undertakes a reform of its Income Tax Act, it is pertinent to ask whether this should be an opportunity to engage in a similar rebalancing that has occurred in more developed jurisdictions.

What does the new Income Tax Bill mean for you?

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Understanding Kenya’s new Income Tax Bill in the context of Kenya’s tax reform agenda:

A series of tax reform bills in recent years have paved the way for a thorough review of the current Income Tax Act. Taxpayers and investors clearly need more clarity, certainty and simplicity to comply with income tax requirements, and the new Income Tax Bill will need to address these priorities as well as the realities of Kenya’s present-day, highly diversified economy.

As PwC, we’re committed to sharing points of view on the latest developments - all featured here on this page. You can watch our webcasts to understand and share your point of view.

We can help you to understand the latest developments and plan for the future. Please contact Titus Mukora, a Partner in our Tax line of service, for more information about how we can help.

Kenya’s current Income Tax Act came into effect in 1974.

Kenya’s economy has grown and diversified significantly since then, from a reliance on agriculture and manufacturing to a much more diversified economy with financial services, digital business and real estate emerging as complex sectors and contributing to the tax revenue base. A past series of amendments have tried to resolve the difference arising from the evolution of the economy, but clearly a comprehensive overhaul of the Income Tax Act is long overdue.

The Government has placed a clear emphasis on four pillars: manufacturing, universal healthcare, food security and affordable housing. These focus areas will help create more jobs for the youth and contribute to the economic growth of the country over the next five years. We would like to see changes in tax legislation aligned to these pillars, including the Income Tax Bill.

PwC has been involved in discussions on Income Tax Reform with public and private organisations. We’ve been involved through budget submissions and we have supported stakeholders with holistic and sector-focused priorities to understand and navigate what we hope to see in the final Income Tax Act.

Download Alert Income Tax Bill 2018

The overhaul of the Income Tax Act (“ITA”) is a welcome move noting that the current ITA was enacted in 1974 and has undergone a lot of piecemeal amendments.