tax due 20 days after the end of the month in which it is incurred. The remission scheme effectively leads to a cash-flow saving on the VAT as no VAT will be payable on purchase or importation of the goods once the approval has been granted.
The VAT remission eligibility is limited to expenditure in respect of ‘new investments’ or the expansion of investments. The remission is subject to certain conditions.
Other indirect taxes
Import duty is imposed on goods imported into Kenya. The rate will depend on a Common External Tariff (CET) in respect of the goods. The
import duty rates range from 0% to 25%. The import duty rates and their application are governed by the East African Community Customs Management Act.
Excise duty is tax imposed on excisable services or excisable goods manufactured in or imported into Kenya. Excise duty is governed by the Kenyan Customs and Excise Act.
Excise duty must be accounted for on certain manufactured goods, including alcoholic and nonalcoholic beverages, luxury goods, soft drinks, juices, tobacco products, petroleum products, cosmetics and vehicles. Excise duty is also applicable to services such as use of mobile cellular phone service, casino and gambling services.
Stamp duty is applicable to the following:
transfer of immovable property;
transfer of unquoted stock or marketable securities;
creation or increase of share capital;
grant of security over assets.
The stamp duty rates vary from 0.15% to 4%.
PwC contact person
Stephen Okello Rajesh Shah Maurice Mwaniki Nelson Ogara Phillip Korir Beatrice Wafula
Tax Director Tax Director Customs Manager VAT Manager VAT Manager VAT Manager
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PricewaterhouseCoopers Rahimtullah Tower Upper Hill Road Nairobi
P.0.Box 43963 Nairobi 00100
+254 20 285 5000
Contact details – PricewaterhouseCoopers, Kenya