According to a report by Business Daily, a Kenyan news publication, Njuguna Ndung’u, Kenya’s treasury secretary relayed plans to stop the zero-rating of value-added tax (VAT) on the supply of several products including maize flour, cooking gas, ordinary bread, medicaments, agricultural pest control products, and animal feeds.
The Ruto administration, based on a recent report seems to have budged under the decade-long insistence from the International Monetary Fund to drop blanket reliefs on consumption. This simply means that the cost of essential goods and services in Kenya is set to increase should the proposed review of taxation laws be realized.
According to the report, the draft Medium Term Revenue Strategy will come into effect by July 2024, and “zero-rating for VAT purposes will be restricted to the export of goods and services, while exemption will apply to goods in the raw state.”
