Kenya rules out VAT rise to match East Africa neighbours
An electronic billing machine. Kenya has ruled out a decision to raise its value added tax (VAT) to match the uniform rate for the rest of the countries in EAC. PHOTO | CYRIL NDEGEYA | NATION
Kenya will not raise its value added tax (VAT) to match the uniform rate for the rest of the countries in the East African Community (EAC), the Treasury has said, offering relief to households and businesses.
Treasury Principal Secretary Kamau Thugge on Tuesday said Kenya’s VAT on consumer goods would remain at 16 per cent despite calls to align the rate with the rest of the trading bloc’s members such as Tanzania and Uganda, which charge 18 per cent.