Kenyans raise concerns over tax utilization as public hearings conclude

This follows a series of intense sessions held across six counties, where Kenyans expressed concerns about the use of tax revenue and the persistence of corruption.

Nairobi residents will have three days to engage with the National Assembly’s Departmental Committee on Finance and National Planning to present their views and submissions on the proposed amendments.

The final public participation sessions at KICC are set to conclude the hearings that have already taken place in Kericho, Siaya, Isiolo, Bungoma, Taita Taveta, and Mombasa.

Among the key proposals in the Tax Procedures Amendment Bill is the extension of the Tax Amnesty Program. If approved, the program will run until June 30, 2025, offering a reprieve for taxpayers to settle arrears without penalties.

The Tax Laws Amendment Bill 2024 also includes several significant changes. Notably, the introduction of the Significant Economic Presence Tax (SEPT) will replace the Digital Service Tax, with an effective rate of 6%.

The bill also proposes incorporating the Housing Levy and SHIF as allowable deductions, among other changes.

Tax collection remains a highly emotive issue in Kenya, with accountability and corruption concerns raised during the public hearings. In counties like Kericho and Mombasa, citizens called for greater transparency in the use of tax revenue.

Kanini Kega, a key player in the process, emphasized the need for caution with tax policies. "We must be careful with our tax policies. We don’t want to introduce punitive taxes that scare away investors and lead to job losses," Kega said during one of the sessions.

National Assembly Finance Committee Chairman Kuria Kimani reassured the public that their concerns would be taken into account. He promised that proposals likely to face widespread rejection would be reconsidered before advancing further.

Both the Tax Laws Amendment Bill 2024 and the Tax Procedures Amendment Bill 2024 were first read in the National Assembly on November 13, 2024, before being forwarded to the Departmental Committee on Finance and National Planning for further consideration and reporting to the House.