Proposed tax on churches continues to spark resistance from religious leaders

Religious leaders have continued to reject the new tax regulation which targets churches and non-governmental Organizations (NGOs) engaging in business.

Assistant Arch-Bishop of Nomiya Church Rev. David Abaki Odhiambo has condemned it, arguing that the new tax regulation targeting churches, NGOs and other institutions exempted from taxes is in bad taste.

He argued that religion is a calling and that they are not business entities as may be perceived by the drafters of the new tax regulations.

Rev. Abaki has therefore pleaded with President William Ruto and his administration to reconsider the new tax regulation, stating that the church has helped a great deal in praying and finding peace for this country and should therefore not be subjected to taxation.

“The government should only regulate the churches to ensure that they are doing the right things other than imposing taxes on them,” the cleric told Radio Ramogi.

Members of Parliament last week supported the new tax regulations targeting churches, NGOs and other institutions exempted from taxes.

The National Assembly Committee on Delegated Legislation, chaired by Ainabkoi MP Samuel Chepkonga, endorsed the Income Tax Regulations Bill (Charitable Organizations and Donations Exemptions) 2024, in a meeting with top officials of the Kenya Revenue Authority (KRA).

The Bill, proposed by former Treasury Cabinet Secretary Prof. Njuguna Ndung'u, seeks to outline requirements to be met by charitable institutions that qualify them for tax exemptions on their income and stipulate what donations will be considered for tax deductions.

However, National Assembly Majority Leader Kimani Ichung’wa has assured the religious organisations in this country that the Bill shall not see the light of the day once it is brought to the floor of Parliament.    

He said the church must be consulted effectively.

“I assure you that the bill will not go forward without deliberations with churches. Churches are a key part of this country and no nation can progress without strong churches,” Ichung’wah said.