Kenya: Direct and indirect tax measures in Finance Act 2023
The Finance Act 2023 was signed into law by the president and gazetted.
The Finance Act 2023 was signed into law by the president and gazetted.
The Finance Act 2023 was signed into law by the president on 26 June 2023 and gazetted on 27 June 2023.
Direct and indirect tax measures in the Finance Act 2023 include:
- Introduction of a housing levy that requires both employers and employees to contribute to the National Housing Development Fund
- Introduction of new pay as you earn (PAYE) tax bands of 32.5% for income between KES 500,000 and KES 800,000 and 35% for income exceeding KES 800,000
- Increase in value added tax (VAT) on petroleum products (excluding liquefied petroleum gas gas) from 8% to 16%
- Exportation of services now taxed at 0%
- Requirement to remit withholding tax to the Kenya Revenue Authority within a five-day period
Read a July 2023 report [PDF 4.4 MB] prepared by the KPMG member firm in Kenya
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