The Treasury has hinted at a suspension of tax waivers on the interest income earned by global financiers of mega infrastructure projects in what is likely to inflame tensions with various lenders, including Kenya’s leading bilateral lender, China.
As part of a fallback plan should the revenue-raising measures contained in the Finance Act 2023 not yield their desired results, President William Ruto’s government has promised the International Monetary Fund (IMF) to get rid of exemptions on interest income as part of “corrective tax measures” which include reducing tax expenditures.
