Banks warn VAT on transactions could damage Kenya's economy

Customers seek help at the Consolidated Bank Banking Hall. [Wilberforce Okwiri, Standard]

Tax experts, bankers and financial inclusion advocates in Kenya are expressing concern about the proposed implementation of value-added tax (VAT) on various banking services contained in the Finance Bill 2024.

The Kenya Bankers Association (KBA) said the new proposal will mean the outlined financial services will attract a VAT charge of 16 per cent if the Finance Bill 2024 is enacted, putting more financial burden on the bank customer.