Introduction

The Kenya Finance Bill, 2025 was released on Wednesday, 30th April 2025.

This year’s Bill proposes a range of changes that could have a significant impact on individuals and businesses across various sectors. From tax amendments to new economic measures, staying ahead of these developments is crucial for informed decision-making.

In our latest newsletter, we break down the key highlights of the proposed changes in the various tax laws and their potential impact on businesses and individuals.

These are proposal at this stage and will only become effective once passed into an Act, which is expected on or before 30th June 2025. This newsletter provides an overview of the proposed amendments across several tax laws, including proposals to:

  • Tax losses to expire if not utilised within 5 years
  • Introduction of Advance Pricing Agreements (APA)
  • Reclassify certain items from a VAT zero-rated status to exempt. These items include, but are not limited to, inputs and raw materials for the manufacture of animal feeds; the supply of solar and lithium-ion batteries; the supply of electric buses; and locally assembled mobile phones
  • Align the timelines for VAT refund applications under the VAT Act and the Tax Procedures Act, reducing the period to within 12 months from the date on which such refunds become due and payable
  • Change the taxable value of coal from its customs value to its excisable value
  • Extend the period within which the Commissioner must ascertain refunds
  • Waive interest and penalties incurred as a result of malfunctions in the Electronic Tax Invoice Management System (eTIMS) and the iTax system
  • Empower the Commissioner to request trade secrets and personal client data from taxpayers
  • Revert the calculation of time for objections and appeals from working days to calendar days

     

Caveat

This newsletter has been prepared by RSM (Eastern Africa) Consulting Ltd, and the views are those of the firm, independent of its directors, employees and associates. This newsletter is for general guidance, and does not constitute professional advice. Accordingly, RSM (Eastern Africa) Consulting Ltd, its directors, employees, associates and its agents accept no liability for the consequences of anyone acting, or refraining from acting, in reliance on the information contained herein or for any decision based on it. No part of the newsletter may be reproduced or published without prior written consent. RSM (Eastern Africa) Consulting Ltd is a member firm of RSM, a worldwide network of accounting and consulting firms. RSM does not offer professional services in its own name and each member firm of RSM is a legally separate and independent national firm.

 

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