Event report
Unpacking the 2025 Finance Bill with Forvis Mazars in Kenya
The Impact of the 2025 Finance Bill on your business.
Today, we were pleased to host a highly insightful breakfast meeting in partnership with our Platinum Member, Forvis Mazars in Kenya, focused on unpacking the implications of the recently released Finance Bill 2025.
The session was expertly led by Peter Momanyi, Tax Director at Forvis Mazars in Kenya, who walked us through the proposed reforms and what they could mean for businesses across the region.
Highlights from the session included:
Regional Trade Integration
With the recent entry of Somalia (Nov 2023) and the DRC (Mar 2022) into the East African Community (EAC), the bloc now represents a population of over 107 million. The expansion is set to:
Enhance free movement of goods and people
Introduce centralized licensing and customs systems
Strengthen cargo tracking and customs administration
Digital Tax & Compliance Shifts
Expansion of the Significant Economic Presence Tax (SEPT) to broader digital transactions
Introduction of a Minimum Top-Up Tax for multinationals (15% minimum effective tax rate)
Adjustment in Advance Pricing Agreements and carry-forward rules for tax and capital losses
Business Cost Impacts
A proposed increase in the tax-free per diem limit to KES 10,000/day (from KES 2,000)
Mortgage interest relief expanded to cover construction loans
Digital asset tax reduced from 3% to 1.5%
VAT, Excise & Compliance Enhancements
Reduction of VAT refund window from 24 to 12 months
Revised timelines for excise license approvals and VAT claims
Stricter controls on the use of exempt/zero-rated supplies
E-TIMS enhancements and broader compliance reach
Tax Administration & Procedure
New protections for taxpayers around amended assessments
Relief from double taxation where WHT is already paid by the recipient
Garnishee orders extended to non-resident persons
Broadened data access powers of the commissioner
These proposed changes effective 1st July 2025, unless otherwise stated underscore a significant shift in Kenya’s tax landscape. While some measures aim to widen the tax base and improve efficiency, others may introduce new compliance burdens and costs for businesses.
We extend our sincere thanks to Forvis Mazars in Kenya and Peter Momanyi for the valuable insights and to all attendees for contributing to a robust discussion.
