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Why Finance Bill 2024 is Different From Others 
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Why Finance Bill 2024 is Different From Others 

The Finance Bill 2024 has become the subject of intense public debate over the past month. For some Kenyans, this was the first time they were hearing of the term Finance Bill, begging the question - why is it different? 

One unique aspect is that Finance Bill 2024 stands out as it proposed to raise the highest amount of new revenue in Kenya's history, targeting an ambitious Ksh330 billion. 

It proposed to raise these revenues by introducing a set of taxes - among the most controversial were: 

  • A Motor Vehicle Tax 
  • VAT on brad and other essentials 
  • Tax on mobile money payments
  • Waiver of data privacy from KRA
  • Tax on sanitary pads and diapers

The National Assembly’s Finance Committee has since proposed a number of changes which will now be reflected as the proposed law moves to the third reading ahead of a final vote on Tuesday, June 25.  

The 2024 bill broke the record of the Finance Bill of 2023 which also became the subject of intense public debate - proposing to raise Ksh211 billion through a set of new taxes and levies. The Finance Bill of 2023 increased new taxes by more than 400% proposing to raise Ksh211 billion in local taxes - up from Ksh50.4 billion that were introduced through the Finance Bill of 2022. 

Here are some of the proposals in the Finance Bill of 2023: 

  • House Levy 
  • VAT of Fuel 
  • Turnover Tax 
  • eTIMS threshold
  • Tax for digital content creators
  • Increased PAYE for some Kenyans

Apart from the two years, Finance Bills in Kenya have passed with relatively little debate and minimal splits among MPs. 

However, the trend in the past two bills shows an increase in public and parliamentary scrutiny, especially when there are multiple tax increases to a population that already feels overtaxed. 

Here are some of the past Finance Bills, the sums they raised and the major taxes they proposed: 

2013: Ksh27 billion. Introduced reforms in VAT and excise duty rates.

2014: Ksh35 billion. Focused on broadening the tax base and enhancing revenue collection mechanisms.

2015: Ksh40 billion. Included measures to increase revenue from customs and excise duties.

2016: Ksh45 billion. Targeted higher revenue through changes in income tax and VAT.

2017: Ksh49 billion. Introduced new tax bands and increased excise duties on various products.

2018: Ksh59 billion. Implemented significant VAT reforms and new excise duties.

2019: Ksh58 billion. Expanded the scope of VAT and introduced new levies on mobile money transfers.

2020: Ksh62 billion. Focused on digital services tax and increased excise duties.

2021: Ksh67 billion. Included minimum tax on corporate earnings and adjustments to PAYE.

2022: Ksh50.4 billion. Raised taxes on betting, gaming, and introduced digital services tax.

2023: Ksh211 billion. Controversial measures included the Housing Levy and increased VAT on fuel.

2024: Ksh330 billion. Highest in history, with significant VAT and excise duty increases.

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Tony Mukere is the editor in chief at Money254. He is a trained journalist with a passion for impactful storytelling. Before joining Money254.co.ke, he worked as an editor at Kenyans.co.ke, and as a reporter at Pulselive.co.ke. Connect with Mukere on Twitter.

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