Kenya’s finance bill raises investor concerns

The tax is part of proposals in the 2024 Finance Bill. Foreigners are expected to pay a 15% tax on interest from infrastructure bonds if the bill is passed while domestic investors pay 5%.

There are concerns that the new tax could hurt foreign investment and affect global tech firms operating in Kenya. The bill will possibly also affect foreign digital businesses by increasing taxes to 6% of gross revenue.

Meanwhile, there’s a widespread objection to a proposed removal of the VAT exemptions on bread and the introduction of a 3.5% annual tax on the value of cars.

According to Semafor, other proposals including tax hikes on money transfer firms, mobile money transfers, and transactions across banks have raised controversies.