Kenya's parliament approved the Finance Bill after lawmakers shot down several tax hikes that would have hurt citizens. The bill will collect 24 billion shillings for government coffers instead of the original 30 billion target. Members voted Thursday afternoon to finish the legislation that heads to President Ruto for signing.
Lawmakers blocked the Kenya Revenue Authority from gaining unlimited access to people's bank records and personal financial data. Politicians said such powers would violate privacy rights guaranteed under the constitution. The tax agency already has enough authority to request information through court warrants when needed.
Parliament rejected plans to expand income tax rates that would have created five different brackets reaching up to 30 percent. Finance officials wanted power to adjust these rates every three years to match rising prices. Representatives also kept zero tax rates on items like mobile phones assembled locally and solar batteries.
The approved bill maintains lower corporate tax rates for car assembly companies and housing developers. Alcohol makers will continue paying current excise duties on spirits production. All pension payments will remain completely tax-free whether people receive lump sums or monthly installments.
Lawmakers blocked the Kenya Revenue Authority from gaining unlimited access to people's bank records and personal financial data. Politicians said such powers would violate privacy rights guaranteed under the constitution. The tax agency already has enough authority to request information through court warrants when needed.
Parliament rejected plans to expand income tax rates that would have created five different brackets reaching up to 30 percent. Finance officials wanted power to adjust these rates every three years to match rising prices. Representatives also kept zero tax rates on items like mobile phones assembled locally and solar batteries.
The approved bill maintains lower corporate tax rates for car assembly companies and housing developers. Alcohol makers will continue paying current excise duties on spirits production. All pension payments will remain completely tax-free whether people receive lump sums or monthly installments.
