- Tax experts, bankers, and financial inclusion advocates in Kenya are concerned about the proposed implementation of VAT on banking services in the Finance Bill 2024
- The Kenya Bankers Association warns that the new proposal will burden bank customers with a 16% VAT charge on outlined financial services
- The Bill also proposes to increase excise duty on financial services from 15% to 20%
- If enacted, customers will pay a total of 39.2% on bank fees as tax
- Bank bosses warn that the proposed taxation measure will hurt Kenya’s status as a financial hub and discourage the use of formal financial services
- The new VAT charges could make banking more expensive for Kenyans and hinder progress towards financial inclusion
- Higher costs might push people towards informal financial systems, which are less secure and transparent.
Source: standardmedia.co.ke
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
