The controversial passage of President Uhuru Kenyatta’s memorandum after rejecting the Finance Bill means that Government may raise Sh130 billion in taxes upto end of June, 2019.
On social media, some unhappy Kenyans got a new sobriquet "Ushuru Kenyattax"colloquial for Uhuru Kenyatta as an over-taxing leader.
The tax will include the contentious 8 per cent levy on fuel products which is expected to bring in Sh17.5 billion to the purse.
The Sugar confectioneries will contribute Sh475 million, mobile (and banks on hidden tax) will pool a whopping Sh11.4 billion. The betting companies together with the winners will give in Sh30 billion between now and end of June next year.
The equally contentious the housing fund, whose structure and bemnefits remain unclear, will milk a total of Sh10 billion from employers and employees. Employees delaying to pay will also pay penalties in a move likely to see many layoffs.
The raid on the poor to fund the rich will also see the ‘kerosene adulteration tax’ net a total of Sh9.8 billion from those who use for lighting and cooking.
Meanwhile the passing of the Finance Bill saw Safaricom PLC shares drop to a 10-month low. For the first time, the NSE’s biggest counter was also the biggest loser.
The stock fell 6.6 per cent by close of business on Thursday to close at Sh24.75, with foreign investors fearing that further tax on internet and mobile money transfer would hurt the firm.
It is likely that the new Finance Act will be challenged in Court as early as next week.