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Businesses push for use of VAT refunds to offset tax arrears

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President William Ruto during the presidential roundtable with the Kenya Private Sector at Ole Sereni Hotel in Nairobi, on August 6, 2025. [PSC]

Businesses will soon be able to use the tax credits they are owed by the taxman as Value Added Tax (VAT) refunds to offset other tax obligations if a proposal presented to President William Ruto is approved.

The President's office is also reconsidering the three-month provision in the Finance Act, 2025, regarding the verification and payment of VAT refunds, to revert it to 90 days.

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