IKCC Main - Activities & Events #KenyaIKCC Main - Activities & Events #Kenyahttps://www.ikcc.co.ke/activities-events-press-release/tag/kenyaMon, 20 Apr 2026 05:20:53 -0700http://zoho.com/sites/<![CDATA[SUMMARY OF CHANGES INTRODUCED IN FINANCE ACT 2025 ]]>https://www.ikcc.co.ke/activities-events-press-release/post/Kenya-Finance-Act-2025

The Finance Act (“The Act”), 2025 received Presidential assent on 26th June 2025. Most of the changes will be effective 1st July 2025 with two effective from 1st January 2026. 
​The summarised newsletter by RSM Eastern Africa below provides brief insights into the key amendments and introductions to the various Acts by the Finance Act.



INCOME TAX

Tax losses – The Act has introduced a limitation on the period that tax losses can be carried forward capping this to five years. 

However, taxpayers can apply to the Commissioner to carry these forward for an additional five years after the expiry of the first five years.

Per diems – Tax free per diem allowance for employees has been increased from KShs. 2,000 per day to KShs. 10,000 per day.

Emoluments – Employers will be required to apply all applicable deductions, reliefs and exemptions prior to computing the tax deductible from employees.

Related persons – The Act has expanded the definition of related persons to include third parties who control multiple entities.

Withdrawals – The Act has deleted all references to winnings and replaced these with withdrawals which refers to amounts withdrawn by a customer from their betting or gaming wallet.

Scope of WHT – The Act has added the; supply of goods to a public entity, making or facilitating payment over a marketplace and withdrawals to the charging section of WHT.

 

 

National carrier – The Act has exempt from withholding tax payments made by the national carrier to a non-resident person not having a permanent establishment in Kenya.

Sale of scrap – This will no longer be subject to withholding tax.

Diminution of loose tools – The Act has reinstated the deductions for loose tools allowing for 100% deductions for the expenses incurred on loose tools in a year of income.

Mortgages on owner occupied residential premises – The Act has expanded the allowable deduction in relation to interest on mortgages to include interest charged on mortgages taken to construct owner occupied residential premises.

Deduction on Sale of standing timber – Salesperson of standing timber can now claim costs on a self-assessment basis.

Digital asset tax – The Act has deleted all provisions relating to DAT. This had been introduced in 2023.

Minimum top up tax – The Act has introduced a due date for the settlement of MTT to be by the end of the fourth month following the end of the year of income.

Advance Pricing Agreements – The Act has introduced APAs that will be agreements between the Commissioner and a taxpayer on the arm’s length price of transactions the taxpayer intends to undertake that fall within the ambit of the Kenya transfer pricing regulations. An APA will be valid for five years.

Country by country reporting – The Act has deleted exemptions to CBC reporting thus all MNEs with a consolidated turnover above KShs. 95 billion will be required to file a CBC report in Kenya.

Capital gains tax – The Act has amended the ITA to exempt from CGT a transfer of property by an individual to a company wholly owned by immediate family.

Change of accounting period – The Act has introduced a 3-month timeline for approval of request of change of accounting year by the Commissioner failure to which these will be deemed approved.

Exemption from income tax – The Act has extended the period for determination of an income tax exemption application from 60 days to 90 days.

Individual retirement funds – The Act has removed the requirement for these to be registered with the Commissioner.


VALUE ADDED TAX

ETIMS – The Act has clarified that only payments subject to WHT as a final tax shall be exempt from ETIMS requirements.

VAT refunds – The Act has harmonised the period for refund applications to be within 12 months similar to provisions of the TPA.

Refund of excess credits from zero rating od supplies – The Act has provided a window of 6 months from 1st July 2025 to persons to claim excess input credits on products reclassified to zero rated status in FA 2023.

Refund of tax on bad debts – The Act has reduced the waiting period for claiming VAT on bad debts from 3 years to 2 years.

Rate changes – Taxable goods of Chapter 5407 & 6309 imported as raw materials now standard rated. Packaging material for coffee and tea zero rated, supply of locally consumed teas now exempt, taxable services and goods to Defence force Welfare Services exempt.


TAX PROCEDURES ACT

Agency notices – The Commissioner can now issue agency to non-resident persons subject to tax in Kenya.

Certificate of origin – All imports will need to be supported by a certificate of origin.

Waiver of penalties & Interest – The Commissioner can now waive penalties and interest arising due to errors generated by an electronic tax system.

Penalty for failure to withhold tax – Taxpayers who fail to withhold will now not be required to pay principal tax where the withholdee has accounted for tax on that payment.

Refunds – Timelines for refund processing has been increased to 120 days for refunds not audited and 180 days for refunds that the Commissioner chooses to audit.

Late objections – Timelines for issuance of an objection decision on late objections will now start running from the date the objection is lodged.

Amended assessments – The Commissioner will be required to include reasons within the amended assessments.

Penalty for failure to file returns – The Commissioner can now issue default assessments where there is no return and apply a penalty similar to a late filing penalty.

 

 

Security for unpaid taxes – The Act now exempts the imposition of restrictions or the auctioning of property by the Commissioner from Stamp duty.


EXCISE DUTY

Digital lender – The Act has included within the definition of a digital lender non licensed entities under the CBK Act, fees charged by these institutions will be subject to excise duty at 20%.

Harmonisation with EAC protocols – For Excise duty purposes, goods shall be classified based on the protocol establishing the EAC Customs Union and the GIRs.

Digital Services – Non-residents shall be liable for payment of excise duty for excisable services offered through the internet, an electronic network or digital marketplace.

Timeline for Excise License – The Commissioner will have 14 days to consider and decide on an excise license application where all documents have been provided.

Defence Forces Welfare Services – All goods and services imported or locally purchased by them will be exempt.

STAMP DUTY

Transfer of property by a company to the shareholders as part of a re-organisation now exempt where this is done in proportion of shareholding.



  Jilna Shah

  Tax Director

CONTACT US:  RSM Eastern Africa Consulting Ltd

  jshah@ke.rsm-ea.com



CAVEAT

This newsletter has been prepared by RSM (Eastern Africa) Consulting Ltd, and the views are those of the firm, independent of its directors, employees and associates. This newsletter is for general guidance, and does not constitute professional advice. Accordingly, RSM (Eastern Africa) Consulting Ltd, its directors, employees, associates and its agents accept no liability for the consequences of anyone acting, or refraining from acting, in reliance on the information contained herein or for any decision based on it. No part of the newsletter may be reproduced or published without prior written consent. RSM (Eastern Africa) Consulting Ltd is a member firm of RSM, a worldwide network of accounting and consulting firms. RSM does not offer professional services in its own name and each member firm of RSM is a legally separate and independent national firm




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]]>Thu, 31 Jul 2025 07:46:32 +0300<![CDATA[IKBC applauds India Africa 5th Summit]]>https://www.ikcc.co.ke/activities-events-press-release/post/India-Africa-Summit-Support-by-IKBC

Discussions, Engagements and Dialogu



This unique format of invite only engagement was a huge success. It featured very many renowned speakers and experts from various industries from Kenya, India and across Africa. 

India Kenya Business Council was proud to be associated with the 5th India Africa Summit and congratulates all the speakers and participants including:

Satyanarayan R - Chairman, CL Educate Group

Dr. Vimal Shah - Chairman BIDCO

Mr. Ravi Venkatesan - Global Alliance for Mass Entrepreneurship

Sushil Jiwarajka - Chairman Infrastructure Corporation of Africa, Moderator: Aarthi Ramasubramaniam - Founder DT Alpha

Dr. Bimal Kantaria - Managing Director Elgon Kenya, 

Ms. Sheena Raikundalia - Chief Growth Officer Kuza Biashara

Dr Jitendra Verma - Managing Director Lifecare Innovations India, 

Mr. Kenneth Iloka - Biomedical Engineer Kenyatta University

Dr. Esther Thaara Muoria - PS State Department for Technical, Vocational Education and Training

Dr David Ndii - Chairperson, President’s Council of Economic Advisors, Government of Kenya

Dr. Abraham Korir Sing’Oei, Principal Secretary, State Department for Foreign Affairs

Mr Harish HV - MD ECube Advisors Ltd, Thomas Abila - Founder Amboseli Energy Partners LLC, 

Mr. Benjamin Metho - Head of SMEs Co-operative Bank, 

Mr Saurav Chatterjee - CEO CARE Ratings Africa Ltd

Dr. Juma Mukhwana CBS, Principal Secretary, State Department for Industrialization, Ministry of Investment Promotion Trade and Industry, Kenya

Hon. Abubakar Hassan Abubakar, Principal Secretary State Department for Investment Promotion

Mr Sandeep Khapre - CEO BDO East Africa, 

Mr DP Mohanty - Regional MD Safal Group and CEO MRM Ltd, 

Mr. Stephen Jennings - CEO Rendeavour, 

Mr John Mwendwa - CEO Kenya Investment Authority, 

Mr Shainav Gupta - Director Amicorp Kenya










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]]>Thu, 31 Jul 2025 07:46:32 +0300<![CDATA[PRESS RELEASE - 6th November 2024]]>https://www.ikcc.co.ke/activities-events-press-release/post/press-release-6th-november-2024Eldoret, known as the home of champions was also the home of the first memorandum of understanding for India Kenya Business Council. This MoU was sign ]]>

IKBC signs MoU with Uasin Gishu County

Eldoret, known as the home of champions was also the home of the first memorandum of understanding for India Kenya Business Council. This MoU was signed between IKBC and the Uasin Gishu County Government on Wednesday 6th November at the Eka Hotel, Eldoret at the IKBC Breakfast Meeting. This MoU is expected to increase collaborations, projects and enterprises between the two countries,  India and Kenya. 

It was signed by Mr. Abhishek Rana - Chairman, IKBC and Ms. Victorine Kapkiai

Chief Officer: Trade, Industrialization, Tourism, Co-operatives and Enterprise Development

County Govt of Uasin Gishu, Eldoret.

It was witnessed by High Commissioner of India to Kenya H.E. Namgya Khampa and H.E. Dr. Jonathan Bii Chelilim Governor of Uasin Gishu County.

Her Excellency, noted that this was a historical moment as trade between Africa and India is set to grow and Uasin Gishu County is a great strategic partner. Hon. Dr. Jonathan Bii acknowledged that development and growth happens better through partnerships and welcomed Indian investors to his county for business and especially sports collaborations, since it is also the home of Kenya’s world famous athletes.

The event also included remarks from the IKBC Advisory Members, Mr. TRM Ramamurthy, Mr. Sailada Gowri Shankar Rao and Mr. Vinay Rathi.

On behalf of Uasin Gishu County, their economic advisor, Mr. Philip Meli shared interesting economic facts about the county.

Chairman, Mr. Abhishek Rana noted, “this MoU will be very important for the future of Kenya because it will provide the expertise and strength of India in different projects including health, agriculture and more.” The event included the announcement of the appointment of Mr. Deepen Bhatt as the Advisory Council Member for IKBC in Uasin Gishu County.

IKBC Board and the High Commission team, including Mr. Rishabh Pewar and Sundeep Kulsari visited the Uasin Gishu County Governor office on Tuesday 5th November for a familiarization discussion. The delegation at the Governor’s office included IKBC Advisory Members, Mr. TRM Ramamurthy, Mr. P.V.S. Rao and Mr. Gowri Shankar Rao. They had significant interactions with the community and business members of Eldoret.

In the evening, the High Commission of India celebrated the 9th Ayurveda Day which was also attended by the Hindu Council of Kenya, India Asia Forum and IKBC. Ayurveda Day was established by the Government of India in 2017 and here in Kenya it was celebrated with the notable opening of Kutoi Hospital in Eldoret, the first Ayurveda Hospital in East Africa. 

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India Kenya Business Council
]]>Wed, 06 Nov 2024 11:16:00 +0300<![CDATA[Press Release - 5th October 2024]]>https://www.ikcc.co.ke/activities-events-press-release/post/press-releaseThe beginning of October 2024, marked the start of the festivities of Navratri and the newly elected India Kenya Business Council (IKBC) Board. Mr. Go ]]>

IKBC: a bridge for business growth between India and Kenya

The beginning of October 2024, marked the start of the festivities of Navratri and the newly elected India Kenya Business Council (IKBC) Board. Mr. Gowri Shankar Rao, handed the baton of chairmanship to Mr. Abhishek Rana on Saturday 5th October 2024. Mr. Rao has been instrumental in the creation of IKBC and wished the new Board immense success in the coming years. 



Joining as the Honorary Secretary is Mr. Sanjeev Sehgal, Treasurer is Mr. Praveen Bajaj, Technical Support by Mr. Veera Kumar N., Media by Mrs. Shubrika Johary and Coordinator Ms. Harleen Jabbal. Also present at the meeting was Dr. Bimal Kantaria, Chairman of United Asian Network and Managing Director of Elgon Kenya. He is a member of the IKBC Advisory Council, which also includes Mr. Ashif Kassam Executive Chairman of RSM Eastern Africa, Mr. P.V.S. Rao Director Alpharama Ltd and Mr. T.R.M. Ramamurthy Group strategic consultant at IPS Kenya Limited (Group company of Aga Khan Development Network).



The Indian Kenya Business Council has been established since November 2023 and is a bridge between Indian and Kenyan businesses enabling growth and expansion in two thriving economies. H.E. Ms. Namgya C. Khampa High Commissioner and PR to UNEP & UN-Habitat is the patron of the council.



Dr. Kantaria congratulated the team and expressed that they owe a debt of gratitude to Mr. Rao as he worked tirelessly with Mr. Rana and the High Commission of India to bring IKBC to realization. Mr. Rishabh Kumar Rewar, Second Secretary (Commerce and Press), Special Assistant to the High Commissioner, High Commission of India recognized the phenomenal efforts on the foundation of IKBC and reaffirmed the support from the Commission as Patron to the Council. Also present at the meeting were Mr. Nikhilesh Srivastava Pharmacor Limited, Mr. Vinay Rathi MD Bank of Baroda (Kenya) Ltd, Mr. Naveen Joon India Exim Bank and Mr. Dipak Kantalia.
India Kenya Business Council
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