Kenya: Vehicle Owners to Pay More As Treasury Removes Sh100,000 Tax Cap

Nairobi — The government has removed a proposal to cap taxes on registered motor vehicles at Sh100,000, meaning that those owning high-end or expensive cars will have to pay more if Finance Bill 2024 passes.

Under the new system, vehicle owners will now be taxed based on the current market value of their vehicles.

The minimum annual tax payable will be Sh5,000, ensuring that even lower-valued vehicles contribute to the nation’s revenue, according to Treasury Cabinet Secretary Njuguna Ndung’u.