The Kenya Revenue Authority (KRA) has won a long-running war with the water services regulator to charge value added tax (VAT) on sewerage services, setting up consumers for a steep rise in monthly water bills.
The Water Services Regulatory Board (Wasreb) is expected to include the 16 per cent VAT charge in water bills after Attorney-General Githu Muigai gave a legal opinion supporting the taxman’s position that sewerage services are not exempted from tax.
