Businesses push for use of VAT refunds to offset tax arrears

President William Ruto during the presidential roundtable with the Kenya Private Sector at Ole Sereni Hotel in Nairobi, on August 6, 2025. [PSC]

Businesses will soon be able to use the tax credits they are owed by the taxman as Value Added Tax (VAT) refunds to offset other tax obligations if a proposal presented to President William Ruto is approved.

The President’s office is also reconsidering the three-month provision in the Finance Act, 2025, regarding the verification and payment of VAT refunds, to revert it to 90 days.