The Finance Act, 2021, which was assented into law by the
President of Kenya on 29 June 2021, makes a raft of changes to
Kenya's tax regime including the Income Tax Act, the Value
Added Tax Act, the Tax Procedures Act, the Miscellaneous Fees and
Levies Act and the Excise Duty Act, among others. Most amendments
proposed under the Finance Bill, 2021 were approved by
Parliament as set out, while others amendments we approved with
modifications.
While we note that some proposed amendments have been rejected
by Parliament, such as the proposed increase of the look back
period for tax audits and tax assessments from the current 5 years
to 7 years and the proposed increase of excise duty on imported
motorcycles, certain new provisions that were not set out in the
Bill have been introduced under the Act. The new provisions and
amendments which do not relate to amendments proposed under the
Bill raise constitutional concerns of lack of public participation,
including
