The Finance Act 2019 has finally been gazetted more than four months after the start of the Financial year 2019/2020.
The Finance Act 2019 has finally been gazetted more than four months after the start of the Financial year 2019/2020. In the intervening period, the fiscal environment has remained volatile with the Kenya Revenue Authority reporting lower than expected first quarter revenue collections and the government now embarking on budget rationalization.
Following the National Treasury’s publication of the calendar for the 2020/2021 budget cycle, this is likely to be the last time that the Finance Bill is presented after the reading of the budget. From next year, the National Treasury plans to present the Finance Bill to the National Assembly by 27 April and to have it approved before the start of the new financial year.
While the removal of the interest rate caps has received the lion’s share of airtime, the changes in the Finance Act 2019 incorporate tax increases on betting, higher import levies, excise duty hikes on alcohol, cigarettes and imports of cars, gas cylinders and among others. These changes will have far reaching implications on the cost of living, access to credit, and the KRA’s tax mobilization efforts.
Kindly click on the link below to access our detailed analysis of the Finance Act 2019.
© 2019 KPMG Advisory Services Limited, a Kenyan Limited Liability Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.