Browsing: taxes in Kenya

• Global ratings agency S&P downgrades Kenya from “B” to “B-” on weaker debt trajectory.
• S&P says Kenya’s financial outlook has deteriorated following the rejection of Finance Bill 2024, which was intended to raise tax revenues.
• Agency projects that Kenya’s budget deficit will widen by almost two percentage points, reaching 4.3% for the 2025 fiscal year.

S&P Global Ratings has further downgraded Kenya’s credit score, pushing the East African nation’s rating deeper into junk territory. This downgrade follows the government’s decision to reject controversial tax increases in late June that were aimed at addressing fiscal imbalances.

The latest move by S&P places East Africa’s biggest economy’s rating on par with countries such as Egypt and El Salvador.

The rejection of the 2024/2025 Finance Bill, which was expected to introduce several tax increases, has been a pivotal moment for Kenya’s economic trajectory. The bill included tax hikes on essential items such as …

Kenya’s tax collector Kenya Revenue Authority has been looking for avenues for raising the tax as the countries look for a more sustainable way of meeting its development budget, and with a debt that seems to be spiraling out of control.

Media reports emerging from Kenya have indicated that the taxman in conjunction with The Communication Commission of Kenya (CA) are looking at media streaming sites like Netflix and YouTube as well as other apps operating in Kenya.

Further, the taxman is looking at ways of collecting revenue from every app downloaded, similar to a legislative clause currently available in Cameroon which allows for Telcos to pay a certain percentage for every app downloaded.

According to KRA, provision of online platforms for use by third parties is a taxable supply under the Value Added Tax Act of 2013. This means that this will attract the standard 16% levy.

“If you …