Kenya presents budget for 2017-18

Posted on Updated on

The Cabinet Secretary submitted the budget for 2017-18 to the National Assembly on 30 March 2017. the main changes are summarised below:

Withholding taxes

Dividends paid to non-residents by enterprises operating in Special Economic Zones will be exempt from withholding tax in order to ensure that foreign investors get a good return on their investment. Withholding tax on interest payable to non-residents by special economic zone enterprises will be reduced to 5%.

Corporate taxation

In order to embolden investors to enter into the housing sector, reduced corporate tax rate has to maintain for developers who construct at least 400 units per year. In the case of new motor vehicle assemblers, the corporate tax rate will be reduced from 30% to 15% for the first 5 years of operation.

Incentives

A 150% deduction incentive will be applicable to the fishing sector and a 100% investment deduction will be applied for the special economic zone on buildings and machinery.

Individual taxation

Individual relief will be increased by 10% and individual income tax bands will be extended by 10%.

Excise duties

An 80% of excise duty will be applicable for locally manufactured beer, millet, cassava or other product except barley and excise duty will be rise from KES 175 per litre to KES 200 per litre on spirits.

Customs duties

White maize will be exempt from duty for a period of 4 months in the case of importation.

One thought on “Kenya presents budget for 2017-18

    James Mwangi said:
    April 2, 2017 at 2:56 pm

    The automobile industry was a big gainer but the incentives are good given the amount of money Kenyans are spending on car importation is mind boggling.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s