KENYA POLLS- INSIGHT

  What Employers Need to Know About PAYE Changes in the Finance Bill 2025 As the Finance Bill 2025 makes its way through public consultation, employers across Kenya are taking a closer look at its proposals — especially those related to Pay As You Earn (PAYE) tax administration. One key proposal is now at the centre of HR and payroll discussions: Employers will be required to apply all tax reliefs before deducting PAYE. This may sound like a logical change, but it comes with its own set of compliance, administrative, and operational challenges. So, is this a step toward simplification or a source of confusion for employers?     What’s Changing Under the Finance Bill 2025? Currently, in many payroll systems, PAYE is calculated first based on gross income, and reliefs such as insurance, housing, or pension are applied afterward when employees file their individual tax returns. Under the proposed changes: Employers must apply all applicable tax reliefs (...

  VAT Refunds and What is Changing in the Finance Bill 2025? The Finance Bill 2025 has brought several significant tax proposals to the spotlight, but one that’s causing ripples across the business community is the reduction of the VAT refund claim period. Under the new proposal, the time limit to claim VAT refunds will be reduced to just 12 months. But what does this really mean for businesses, consumers, and the broader Kenyan economy?   What is the Current VAT Refund Framework? Under the existing VAT Act, businesses can claim Value Added Tax (VAT) refunds on inputs related to zero-rated supplies or when they are in a refund position due to excess input VAT. Currently, businesses have up to five years to lodge a VAT refund claim with the Kenya Revenue Authority (KRA). This system has allowed businesses more flexibility, especially those with complex accounting processes, long contract cycles, or delayed supplier reconciliations.   What’s Changing in the Fi...

  Is SHIF Tax Relief the Future of Affordable Healthcare in Kenya via the Finance Bill 2025? As the government of Kenya continues to reform healthcare and tax policy in Kenya, the Finance Bill 2025 introduces a new proposal that is sparking national conversation: granting tax relief on contributions to the Social Health Insurance Fund (SHIF). While this may sound like a win for most Kenyan households, many are asking will this truly make healthcare more affordable, or simply add another layer of complexity to the tax system?   What Is the Social Health Insurance Fund (SHIF)? SHIF is set to replace the current the National Health Insurance Fund (NHIF) framework, expanding healthcare access through a more inclusive model. Contributions will be income-based, and the fund aims to provide essential health care services for all Kenyans under the Universal Health Coverage (UHC) agenda.   What Does the Finance Bill 2025 Propose? Under the new proposal: All con...

  Unlocking Kenya’s Digital Future: How the Finance Bill 2025 Empowers Tech, Fintech & Start-ups As Kenya rises as a leading digital economy in Africa , the Finance Bill 2025 Kenya introduces bold reforms that could supercharge growth in sectors like fintech , e-commerce , cryptocurrencies , and digital services. These tax and policy updates are designed to position Kenya as a competitive tech-driven economy while ensuring sustainable revenue collection. What’s Changing: Digital Tax Reform in Finance Bill 2025 Kenya A major highlight in the Finance Bill 2025 is the digital tax reduction —cutting the digital asset tax in Kenya from 3% to 1.5%. This tax applies to the transfer or exchange of digital assets such as cryptocurrency and NFTs. By reducing the rate, the bill supports fintech growth and encourages innovation in the digital financial services space. Why This Matters for the Digital Economy Kenya Boosting Fintech Kenya & Start-ups: Lower taxes make Kenya...

Finance Bill 2025: What It Means for Kenyans The Finance Bill 2025 Kenya, currently under public scrutiny, introduces a wave of tax reforms aimed at boosting revenue collection and aligning Kenya’s tax system with global standards. While the Kenyan government emphasizes fiscal consolidation and economic growth, the bill has sparked widespread debate on its potential impact on the cost of living, business environment, and economic equity.    Key Proposals in the Finance Bill 2025   Digital Asset Tax Reduction The bill proposes a reduction in the digital tax in Kenya from 3% to 1.5% on the transfer or exchange value of digital assets. This move is designed to encourage innovation and growth within the digital economy, especially in fintech and cryptocurrency sectors.   Corporate Tax Incentives for Start-ups Under the bill, start-ups in Kenya certified by the Nairobi Inter...