The 2021/22 Kenya Budget estimates were presented by National Treasury Cabinet Secretary Ukur Yatani on June 10th before Parliament.
This year’s budget has increased by 9% from Ksh 3.36 trillion (2020/21) to Ksh 3.66 trillion.
Total expenditures for the 2021/22 financial year are projected to be at Ksh3.03 trillion (24.5% of GDP) as compared to Ksh2.89 trillion (25.8% of GDP) for the 2020/21 financial year.
CS Yatani proposed the following measures to raise revenue for his second budget include:
- Imports of vegetable products to attract 30% duty rate for the next one year
- Excise duty on nicotine products at Ksh5 per gram
- Digital Service Tax: Income tax expanded to include internet and electronic products.
- Amendments of custom duty to raise Ksh8.7 billion to the exchequer.
- Reintroduction of excise duty on betting at the rate of 20% of the amount wagered
- Solar power generation equipment exempted from VAT
- VAT exemption for laboratory reagents and lab equipment
- Sanitizers, ventilators, masks duty free for the next one year
- Imports used in manufacture of ventilators VAT exempted
- Removal of excise duty on locally assembled motor vehicles, duty-free importation of Completely Knocked Down kits and reduced corporate tax from 30 to 15% for the first five years of operation.
BUDGET STATEMENT by CS Yakur Yatani FY 2021/22 Theme: “Building Back Better: Strategy for Resilient and Sustainable Economic Recovery and Inclusive Growth”.
DELOITTE Kenya Budget Highlights :Navigating new realities June 2021
KPMG BUDGET BRIEF 2021/22 :Building back better – Strategy for resilient
and sustainable economic recovery.