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Kenya has proposed a 2.5% annual levy on the value of motor vehicles in the 2024/25 financial budget. Finance Minister Njuguna Ndung’u announced in parliament during the budget.
Kenya has proposed a 2.5% annual levy on the value of motor vehicles in the 2024/25 financial budget. Finance Minister Njuguna Ndung’u announced in parliament during the budget. Under the proposed levy, motorists would pay a minimum of USD 40 yearly as tax on their vehicles. The levy is charged on each vehicle. If the motor vehicle’s value is high, a 2.5% deduction would be imposed. This means that if a car is valued at USD 15,500, the government would take USD 390, which is 2.5% of the car’s value. The government had earlier proposed to cap the annual motor vehicle ownership tax at USD 780, but in the proposed budget, that clause had been struck off.
Kenyan motorists are already subjected to motor vehicle importation tax, clearance charges, insurance charges, and fuel taxes. Kenyans took to social media to express their anger over the proposed tax on motor vehicle ownership. Treasury Ministry’s Principal Secretary Chris Kiptoo said the government had considered a uniform “road maintenance levy” on all Kenyans but abandoned the plan. But later felt that the government did not need to do that because it would affect many other people who do not even have (motor) vehicles, stated Kiptoo.
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https://trendsnafrica.com/kenya-draws-its-biggest-ever-budget-with-an-array-of-new-taxes/
https://trendsnafrica.com/kenya-to-spend-usd-31-billion-in-2024-25/
As of 2021, Kenya had about 2.1 million registered motor vehicles. The government’s new tax proposal will be debated by parliament, and if approved Kenyans would have to pay more to own vehicles in the coming year.
