Victor Ruto Tolelio

Meru County grassroots Leaders engagement with President William Samoei Ruto at Statehouse, Nairobi

FINANCE BILL 2024/2025 HIGHLIGHTS

1. Introduction of Motor Vehicle Tax at 2.5% of the value of the car subject to a minimum of KES 5,000 and maximum of KES 100,000 per year.

2. Pension contribution limit increased to KES 30,000 from KES 20,000 per month.

3. Taxation of Per Diems to be revised subject to an employer having an approved per diem policy with exempts amount being pegged at am minimum daily allowance of 5% of the employee's gross monthly salary.

4. Repealing of Digital services Tax and Introduction of of significant economic presence tax with an effective tax rate of 6%.

5. VAT registration threshold increased from KES 5,000,000p.a to 8,000,000p.a

6. Bread to attract VAT at 16% from zero rated status.