Why Kenyan bankers are up in arms over 2024 tax plan

Guests during the launch of a PricewaterhouseCoopers and Kenya Bankers Association tax report in August 2023 in Nairobi.

Photo credit: File | Nation Media Group

Kenyans will be driven out of the formal financial services system if Parliament approves a proposal to impose value-added tax (VAT) on transactions, a banker’s lobby has warned.

The Kenya Bankers Association (KBA) told the National Assembly’s Finance and National Planning committee that the proposed increase of excise duty on financial services, from 15 percent to 20 percent, would push Kenyans to informal banking.

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