Kenyan Treasury Cabinet Secretary Njuguna Ndung’u explained that tax reliefs such as incentives, waivers, and abandonments are meant to encourage economic activities, but abuse of the process can have negative consequences.
He clarified that the suspension of abandonments and refunds payments does not mean that they have been scrapped and that it is not a change in policy.
The government reviewed the terms of relief to establish a mechanism that ensures fairness, equity, and effectiveness in implementing legal tax provisions.
However, other tax reliefs and incentives applications are clearly provided for in the law and will be reviewed in line with existing laws.
President William Ruto announced plans to increase tax collection by Ksh274.1 billion in the current fiscal year.
