On 25^th November 2024, the Kenya Private Sector Alliance (KEPSA) participated in a consultative engagement with the National Assembly Committee on Finance and National Planning to deliberate on the proposed amendments to the Tax Laws, Tax Procedures, and Business Laws. This meeting formed part of the ongoing public participation process regarding these bills. 

Ms. Jilna Shah, Vice Chair of the KEPSA Public Finance Sector Board, led the discussions, expressing appreciation that the proposed bills had incorporated several recommendations previously presented by the private sector. She emphasized that these adjustments would contribute to an improved business environment, facilitate tax administration, and enhance employees' disposable income. Additionally, she underscored the importance of including provisions for Credit Adjustment Vouchers (CAVs) to allow businesses to offset input tax against output tax, thereby improving liquidity. 

Addressing the proposals on excise duty, Mr. Steve Okoth, a Public Finance Sector Board member, highlighted the need for a phased approach to taxation increases in the cigarette industry. He recommended staggering the excise duty increment over three years to sustain over 437 direct jobs and more than 15,000 indirect jobs while supporting approximately 1,700 farmers and their livelihoods. 

On the Business Laws Amendment Bill, KEPSA emphasized the need to align the definitions of standards in the bill with the East African Community (EAC) Treaty and EAC standards. Furthermore, it was proposed that the Kenya Accreditation Service incorporate Mutual Recognition Agreements (MRAs) to enable mutual acceptance of certifications and inspections across parties without additional requirements.

Click here to view the memorandum from KEPSA on Tax Laws/Procedures (Amendment) Bills 2024 and here for the Business Laws (Amendment) Bill 2024.