President Kenyatta signs Finance Bill 2018 into law

September 21, 2018
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NAIROBI, Kenya, Sep 21 – President Uhuru Kenyatta has signed into law the Finance Bill 2018 that was passed in parliament amidst claims of ‘rigging’ through a controversial vote by acclamation. 

The President’s signature paves the way for the implementation of tax measures proposed by the Head of State including a revision of 8 percent VAT on petroleum products from 16 percent.

Other tax recommendations the President had sent to parliament, include motor vehicle duty of between 20 and 30pc, a levy on sugar confectionery and increase in duty on mobile and internet data services from 10pc to 15pc.

Kenyans will now pay more for mobile money services following an increase of excise duty from 10 percent to 20 percent.

The Housing Development Fund tax to be paid by employees has been revisited and increased to 1.5 percent while the employer will contribute 1.5 percent of the monthly basic salary with a penalty of 5 percent for employers who fails to submit the contribution.

The National Assembly also approved the supplementary budget that contains austerity measures aiming to cut Sh55 billion from the 2018/19 financial year.

While signing the bill, President Kenyatta emphasised his commitment to ensuring that public resources are utilized effectively.

He added that he will not relent on the war against corruption and asked Kenyans to join him to make Kenya a better place.

The President also signed into law the Coast Guard Bill 2018 which marks an important milestone in the management and enforcement of laws in Kenya’s internal and territorial waters.

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