Finance Bill 2024: How the proposed tax on financial transactions will affect MSMEs

The Kenya National Chamber of Commerce head of Policy Research Kiplimo Kigeni. [Screen Grab]

Micro, Small and Medium Enterprises (SMEs) might face financial barriers if the 16 per cent proposed Value Added Tax (VAT) on financial institutions is implemented, says the Kenya National Chamber of Commerce head of Policy Research Kiplimo Kigeni.

Speaking during an interview on Spice FM on Tuesday, May 21, Kigen warned that banks could hesitate to lend to MSME operators, fearing potential losses if borrowers default.