RWK Financial Compass

A Welcome Reprieve for Taxpayers We are pleased to inform you about a significant proposed change regarding the ongoing tax amnesty program in Kenya.  As part of the recent changes to the Finance Bill, the government has proposed extending the deadline for the tax amnesty from June 30, 2024, to March 31, 2025.  This extension is designed to provide taxpayers with additional time to settle their tax liabilities without facing penalties and interest accrued up to December 31, 2022.  Benefits to Taxpayers Financial Relief: The waiver of penalties and interest allows taxpayers to manage their financial obligations more effectively, reducing the overall cost of tax compliance. Extended Timeframe: The additional nine months provide ample time for taxpayers to gather the necessary resources and documentation to settle their principal tax sums. Increased Compliance: By taking advantage of the amnesty, taxpayers can regularize their tax status, avoiding future penalties and intere...

The 2024-2025 budget for Kenya, presented by the Ministry of National Treasury and Economic Planning, is designed to sustain economic growth and address various sectors with a total budget of approximately 3.9 trillion shillings. Here’s a breakdown of the budget: Sources of Expected Funds The budget will be financed through several sources: Total Revenue: Ksh 3,343.2 billion will come from various forms of tax and non-tax revenue. Grants: Ksh 51.8 billion will be obtained from international grants and aid. Deficit: There is a budget deficit of Ksh 597.0 billion, which will be financed by: -Net Foreign Financing: Ksh 333.8 billion will be sourced from foreign loans and financial aid. -Net Domestic Financing: Ksh 263.2 billion will be raised through domestic borrowing. If you'd like to talk to a tax and finance expert, you can click here to book a free consultation appointment. Allocation in Different Sectors The budget allocations are distributed across various critical sectors a...

Greetings from RWK & Associates!   We are pleased to update you on significant developments in Kenya's healthcare landscape. The government has enacted the Social Health Insurance Act, No. 16 of 2023 (SHIFA), aimed at enhancing access to healthcare through the Social Health Insurance Fund (SHIF). SHIFA was assented to on October 19, 2023, and came into force on November 22, 2023, marking a pivotal step towards achieving universal health coverage in Kenya. SHIF and Its Impact The Social Health Insurance Fund (SHIF) established under SHIFA is a transformative initiative designed to provide comprehensive health insurance coverage for all Kenyans. SHIF aims to replace the National Health Insurance Fund (NHIF), streamlining healthcare funding and ensuring more equitable access to medical services.  With SHIFA, the Social Health Authority will oversee the functions previously managed by NHIF, extending its reach to cover primary healthcare services through the Primary Health Fun...

We hope this message finds you well. We are writing to inform you about a significant development in the agricultural trade sector. The government has announced the operationalization of the food crops regulations, initially gazetted in 2019, targeting importers and exporters of cereals, legumes, pulses, roots, and tubers. Effective July 1, 2024, these food crops will now be subjected to new taxes as part of the government’s strategy to expand its revenue base and regulate the market. New Levies on Food Crops Imports and Exports The Agriculture and Food Authority (AFA) has issued a notice, dated May 28, detailing the imposition of levies starting from July 1, 2024. Under these new regulations, cereal imports will be taxed at a rate of 2.0% of their customs value, while exports will incur a 0.3% levy. Similarly, legumes and pulses will face a 2.0% customs charge for imports and a 0.3% levy on exports. For roots and tubers, the import tax is set at 1.0%, with a 0.3% tax on exports. The...