Kenya: MPs Urged to Relook Proposed 16% VAT On Financial Transactions

Nairobi — Kenyan bankers are against a proposal by the government to introduce a 16 percent VAT on financial transactions under the Finance Bill 2024.

While VAT applies to payments for goods and services, the Kenya Bankers Association (KBA) says that bank charges are not a direct payment for anything but a cost recovery.

Since banks are not delivering any goods to customers, bank charges are not considered ‘VATable’, it said.

The Finance Bill 2024 seeks to introduce VAT on various financial…


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