The government has withdrawn several contentious proposals from the Finance
Bill 2024, which was tabled at the National Assembly on Tuesday, 18 June 2024.
The decision came after a meeting at State House Nairobi, involving Members of
Parliament aligned with the ruling Kenya Kwanza coalition under President
William Ruto.
Key changes to the Finance Bill 2024 include:
Withdrawal of the proposed 16% VAT on bread.
Removal of excise duty on vegetable oil.
No increase in transaction fees for mobile phone transfers
Eco levy applies only to imported finished products; locally manufactured items
like diapers and sanitary towels are exempt.
VAT registration threshold increased from Ksh. 5 million to Ksh. 8 million, meaning
that many small businesses will no longer need to register for VAT.
eTims receded from farmers and small businesses with a turnover of below Ksh. 1
million.
Excise duty on alcoholic beverages revised based on alcohol content to combat
illicit brews.
Withdrawal of the proposal 2.5 % motor vehicle tax
Removal of VAT on sugarcane transportation from farms to milling factories.
These revisions reflect the government responsiveness to public concerns and
strategic adjustments aimed at supporting various sectors of the economy.