The Kenya Bankers Association (KBA) has cautioned against implementing the proposed 16 percent value-added tax (VAT) on financial transactions, saying the policy could hamper financial inclusion efforts and particularly affect low-income individuals and small businesses.
The KBA said the proposed levy would also widen the margin charged on currency exchange transactions, which poses a risk to economic growth as it would adversely affect foreign investments in Kenya as well as reverse the recovery of the tourism industry.
