kENYA: All eyes on the 2015/16 Finance Bill

Kenyans will have to wait a little longer to know how various taxation measures in the 2015/16 budget will affect them. The Cabinet Secretary for the National Treasury Henry Rotich will have to table the Finance Bill 2015/16 before Parliament for discussions. The document contains far reaching amendments to various laws and regulations as well as draft bills to introduce new tax laws, all with implications on the common person on the street.

“There’s still a lot of information outstanding. We have yet to see the Finance Bill and other related bills,” said Anne Eriksson, the PwC Country and Regional Senior Partner.

Her sentiments were shared by PwC Director Steve Okello, who said it would be preferable, in order to avoid economic uncertainty, if the Finance Bill was released on the same day as the Treasury Cabinet Secretary made his presentation to the National Assembly, so they could be debated in tandem.

For instance, the new Excise Bill is expected to push up the price of fuel, tobacco and alcoholic beverages. Commercial banks are also expected to meet the new minimum capitalisation levels as well as insurance firms, pushing up cost of credit and insurance premiums.

Also expected to come under intense debate are the retirement packages for retired senior politicians, including the former Premier, Vice President and Deputy President. “Instead of spending more resources to maintain our soldiers in Somalia, we should instead think of pulling out of this territory so as to reduce attacks by Al Shabab Militia,” said Francis Nyenze, Leader of Minority in Parliament, while reacting to the 2015/16 budget proposals from Parliament.

“Maybe the reason why no changes were made on the Excise Duty is because there’s an intention to publish a new Excise Duty bill. So when that is published it might actually come with changed rates,” Okello said.