Kenya gazettes Statute Law (Miscellaneous Amendments) Act, 2024 with several tax-related changes

Executive summary

The Statute Law (Miscellaneous Amendments) Act, 2024 (the Act), gazetted on 26 April 2024, seeks to amend several Acts of Parliament. This Alert highlights tax-related changes in the legislation.

Due date for remitting national industrial training levy

The Act adjusts the deadline for remitting the national industrial training levy (levy) of 50 Kenyan Shillings (KES) per employee from the fifth day to the ninth day of the subsequent month.

The levy is collected by the Kenya Revenue Authority on behalf of the National Industrial Training Authority.

The amendment aims to harmonize the remittance date with other statutory deductions such as Pay As You Earn (PAYE).

Value-added tax (VAT)

a) Exemption for supply of gas meters

The Act has exempted the supply of gas meters from VAT.

This implies that manufacturers/suppliers will not be required to charge VAT on the supply of gas meters and also will not be entitled to claim input VAT on the supply of gas meters.

Suppliers will, however, be required to account for VAT on imported services that relate to the supply of gas meters.

b) Introduction of VAT on denatured ethanol

The supply of denatured ethanol is now taxable at 16%. Previously an exemption applied in a effort to promote the manufacture of cleaning agents, cosmetics and disinfectants.

The introduction of VAT will likely increase the cost of goods that rely on denatured ethanol. Suppliers of denatured ethanol will, however, be entitled to input VAT credit on goods and services that are used in the manufacture/supply of denatured ethanol.