Tax & Accounting Blog

Kenya – VAT On Food May Be Coming Soon

Indirect Tax, VAT Tax Rates July 5, 2013

RTR2NE1D_72dpiOn 1 July 2013 Kenya’s controversial Value Added Tax Bill progressed through its first reading in the Parliament. It is being reported that the Bill could be passed as early as late this week. If passed the 16% rate would be applied to essential commodities such as food and medicines. Activists have been protesting the bill saying that it will significantly increase the cost of living and hit lower income Kenyans especially hard.

The Bill was first introduced last year, but didn’t go beyond the First Reading.