President William Ruto has signed the Finance Bill 2025 into law to ease the cost of doing business, and bolster economic growth across key sectors.
The bill which was passed by the National Assembly on June 19, amends six key tax laws: the Income Tax Act, the Value Added Tax Act, the Excise Duty Act, the Tax Procedures Act, the Miscellaneous Fees and Levies Act, and the Stamp Duty Act.
The Finance Bill 2025 provides zero rating of tea and coffee packaging materials to boost the agricultural value chain.
The new law puts in place in a raft of tax amendments and fiscal reforms designed to streamline revenue collection in the country.
ALSO READ:
The Finance Act 2025 has significant incentives to the telecommunications sector. The Act provides a tax exemption on investment allowances related to the purchase of spectrum licenses and rights to use fiber optic cables by telecom operators. This will is aimed at promoting digital infrastructure investment.
The new law also has a mandatory amendment to the Income Tax Act requiring all employers to automatically apply all applicable tax reliefs, deductions, and exemptions for their employees.
The provision ensures employees receive their full tax benefits without needing to make separate claims, improving compliance and fairness in the tax system.
ALSO READ:
It also provides exemptions for property transfers within Special Economic Zones and gains on listed securities.
A reduction in the Capital Gains Tax rate from 15% to 5% for high-value investments certified by the Nairobi International Financial Centre Authority.
The new law also provides VAT exemptions on raw materials and machinery used in manufacturing mosquito repellents.
In the new law period for processing tax offset and refund applications was extended from 90 to 120 days.
By Obegi Malack
Get more stories from our website:Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook:Sacco Review Newspaperfor timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
