State yet to clear Sh30b VAT backlog

Manufacturers have urged the Government to release Sh30 billion owed to them in Value Added Tax. The Kenya Association of Manufacturers (KAM) says the recent budget speech by Treasury Cabinet Secretary Henry Rotich failed to touch on outstanding VAT claims, obsolete levies and double taxation faced by firms.

The Association’s Western Kenya Chairperson Joyce Opondo told The Standard that the budget failed to meet a number of expectations held by manufacturers, leaving the country as most expensive in the region to produce in. “We were hoping the Government would set aside some money to clear the backlog of claims by manufacturers but the budget did not mention any of these payments,” Ms Opondo said.