STATEMENT BY KENYA KWANZA PG AFTER

MEETING AT STATE HOUSE ON 18TH JUNE, 2024

The Finance Committee of the National Assembly briefed

the Kenya Kwanza Parliamentary Group on the report on
the Finance Bill. They included the following:

1. 16 per cent VAT on bread removed.

2. VAT on transportation of sugar also removed.

3. VAT on financial services and foreign exchange

transactions has also been removed.

4. No increase on mobile money transfer.

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. This means the levies
will not attract income tax, putting much more money in
the pockets of employees.

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

10. The threshold for VAT registration has been increased

from KSh5 million to KSh8 million. This therefore means
that many small businesses will no longer need to register
for VAT.

11. Responsibility for electronic invoicing ETIMS, recently

introduced by KRA, has been receded from farmers and
small businesses with a turnover of below Ksh. 1 million

12. Excise duty imposed on imported table eggs, onions

and potatoes to protect local farmers.

13. Excise duty on alcoholic beverages will now be taxed

on the basis of alcohol content and not volume. The
higher the alcohol content the more excise duty it will
attract. Consequently, alcohol manufacturers are expected
to make safer and cheaper alcohol.

14. Pension contributions exemption to increase from Ksh.

20,000 per month to Ksh. 30,000 .

15. The PG was also informed that adequate funds -KSh18

billion - have been provided for the employment of all
46,000 Junior Secondary teachers who are on internship.

16. Funds have also been provided to hire 20,000 interns

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next month. The policy is now to transition teachers from
internship to permanent and pensionable terms

17. His Excellency the President informed the PG that the

Executive and the Legislature will continue making the
right decisions no matter how difficult they are. He
pointed out that last year’s proposal in Finance Bill 2023
have led to tremendous progress.

18. The President also commended national institutions for

working effectively in a democratic Kenya. The National
Assembly has changed the Finance Bill that was prepared
by the Executive. This is as it should be.