Relief has been extended to Kenyans following the government’s withdrawal of some contentious measures from the Finance Bill 2024, which was scheduled to be introduced in the National Assembly on Tuesday afternoon.

The announcement was made earlier today at the State House. These new amendments are aimed at reducing the high cost of living and helping Kenyans navigate the tough current economy in the country.

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Below are some of the changes that have been made to the 2024 Finance Bill.

1. The proposed 16 percent on bread has been dropped to help reduce the high cost of living.

2. The excise duty on vegetable oil has been removed.

3. The transfer of mobile services is a key concern for many Kenyans; hence, there has been no increase in the transaction of mobile phone transfer services. The status quo remains.

4. We proposed that statutory deductions such as housing levy and SHIF be tax deductible, and hence allow what is subjected to PAYE to be an amount less than what was there before, so more disposable income.

5. The eco-levy will only be tangible for imported finished products. All locally manufactured items, including diapers and sanitary towels, will not be subject to an eco-levy.

6. VAT threshold: increase from Ksh. 5 million to Ksh. 8 million; hence, SMEs that have a turnover of less than Ksh. 8 million don’t have to register for VAT.

7. eTIMS: Small businesses that have a turnover of less than Ksh. 1 million should be exempt from eTIMS.

8. Eggs, onions, and potatoes: proposed excise duty only on imported eggs, onions, and potatoes, hence locally produced to be more marketable.

9. Fight against illicit brews: change in excise duty from volume to alcohol content; hence, those producing very high alcohol content will pay more excise duty.

10. To support pension contributions, increase the amount allowable for taxable contributions from Ksh. 20,000 to Ksh. 30,000 monthly.

11. Money allocated for JSS: hire all 46,000 JSS intern teachers for permanent and pensionable terms. In addition to recruiting another 20,000,.

12. Motor Vehicle Tax: The motor vehicle tax cannot be amended through the Income Tax Act. Pegging it on insurance would cripple the insurance business, hence, the proposal has been dropped.

13. Sugarcane Transportation: Remove VAT on the transportation of sugarcane from farms to milling factories.