The Treasury has removed value added tax (VAT) on the importation of all aircraft spare parts, a waiver that will see cash-strapped Kenya Airways free up hundreds of millions of shillings normally locked up in duty refunds from the taxman.
The Finance Bill, which was published a week ago, amended the 2013 VAT law which only exempted aircraft operators from paying the 16 per cent levy on some of about 400 types of spare parts.
