The Chairperson of the National Assembly Committee on Finance and National Planning, Kuria Kimani, reassured stakeholders at a Kenya Bankers Association (KBA) breakfast meeting that the upcoming Finance Act 2024 will offer clear guidelines to streamline tax procedures and eliminate uncertainties. Kimani highlighted the importance of clarity in tax regulations and mentioned that the new act will introduce specific monthly deadlines for tax remittances to the Kenya Revenue Authority (KRA). He acknowledged the challenges arising from the lack of clear timelines in the previous Finance Act, which could lead to increased tax compliance costs.

Edna Gitachu, a tax policy consultant for KBA, discussed the impact of the Finance Act 2023, noting that it required tax payments within five working days, leading to a significant increase in annual tax transactions. This surge resulted in substantial financial burdens on entities, especially in terms of administrative costs. Gitachu revealed insights from their ongoing Total Tax Contribution Report, indicating a notable rise in tax payments and supplementary expenses incurred by banks for tax compliance.

Kimani further explained that the Finance Act 2024 aims to harmonize with existing legislation to address concerns related to new levies like the Housing Levy and the Social Health Insurance Fund. These concerns mainly revolve around potential conflicts with current employment laws, which could strain disposable incomes. The forthcoming Finance Act 2024 is expected to establish a more organized tax regime, simplifying compliance processes for entities and reducing undue financial burdens. Stakeholders anticipate a conducive environment for economic activities in the upcoming fiscal year, emphasizing clarity and alignment with existing laws.