The Kenya Kwanza government on Tuesday June 18, 2024  announced the removal of controversial taxes from the Finance Bill 2024, following a public outcry.

This comes as a relief to Kenyans, as the Finance Bill is tabled in parliament Tuesday afternoon. 

The amendments were announced by Molo Member of Parliament Kimani Kuria, who disclosed that they considered the views of Kenyans during public participation.

Speaking during a Kenya Kwanza parliamentary group meeting at State House in Nairobi, Kuria explained that some additional taxes were dropped for the benefit of Kenyans.

Some of the changes in the Finance Bill 2024 include the following: 

1. 16 per cent VAT on bread removed.

2. VAT on the transportation of sugar also removed.

3. VAT on financial services and foreign exchange transactions has also been removed.

4. No increase in mobile money transfers.

5. 2.5 per cent Motor Vehicle Tax has also been removed.

6. Excise duty on vegetable oil removed.

7. Levies on the Housing Fund and Social Health Insurance will become income tax deductible. 

8. It is crucial to point out that Eco Levy is being levied on imported finished products. Locally manufactured products will, therefore, not attract the Eco Levy. Locally assembly and manufacturing will help boost Kenya’s manufacturing capacity, create jobs and save foreign exchange.

9. Consequently, locally manufactured products, including sanitary towels, diapers, phones, computers, tyres and motorcycles, will not attract the Eco Levy.