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KRA Under Fire Over New Tax Rule
On October 31, 2023, the Kenya Revenue Authority (KRA) tweeted a bombshell: all imported goods valued at over USD 500 would be subject to import duty and VAT, regardless of whether they were for personal use or not.
“All goods whether new or used, are subject to taxation,” KRA posted on X, formerly known as Twitter. “Remember when traveling you will be allowed to carry personal or household items worth USD500 and below. Anything above the amount, shall be subjected to tax,” it added.
The post sparked a public outcry, with Kenyans across the board condemning the move as unfair and burdensome. Some argued that it would make it more expensive for Kenyans to buy essential goods from abroad, while others worried that it would discourage tourism and investment.
The KRA quickly deleted the tweet, but the damage had been done. Kenyans were left reeling, wondering what the KRA was thinking.
In an undated video that has since emerged, Tourism CS Alfred Mutua waded into the controversy, condemning the KRA’s “constant harassment” of tourists. Mutua promised to deal with the problem, saying that it was harming Kenya’s image as a tourist destination.
In a speech at the KRA Tax Day in Mombasa County on November 3, 2023, President William Ruto urged the Kenya Revenue Authority (KRA) to treat Kenyans with courtesy while collecting taxes. He said that citizens support the government and should therefore be treated with dignity.
“Not only is it possible to be efficient and effective while being courteous and considerate, it is the only way to serve tax payers,” President Ruto said. “It is not necessary for effective revenue collection to be unpleasant and demeaning to taxpayers.”
President Ruto’s statement came barely a day after KRA issued an apology after a couple were harassed at the Jomo Kenyatta International Airport (JKIA) over the wedding gown taxation row. The couple was reportedly detained for several hours and had their luggage searched after they refused to pay taxes on the wedding gown.
Kenyan Police Arrest 49 Illegal Immigrants in Nairobi
Kenyan police Thursday arrested 49 suspected illegal immigrants in Nairobi’s Kayole and Huruma estates, believed to be of Ethiopian descent. The arrests were made following a tip-off from resident Nyumba Kumi members.
Thirty-one of the suspects were nabbed at a house in Komarock Phase 3 estate. The owner of the house has yet to be identified, but police believe they may be involved in a human trafficking ring. The suspects were found crammed together in a single room, unable to communicate in either English, Kiswahili, or any other local language.
The remaining 18 suspects were apprehended in Huruma at a house within the Jonsaga area. Police believe they were destined for South Africa. The trafficker managed to evade arrest, but the 18 suspects were slated to be arraigned in court on Friday where they were to be charged with being in the country illegally.
Kenya has become a major transit point for migrants from Ethiopia and other East African countries who are seeking to reach South Africa. The Kenyan government has pledged to crack down on human trafficking.
Kenya Opens First Local Phone Assembly Plant
Kenyan telecommunications companies on Monday opened the first local phone assembly plant in partnership with international device manufacturers.
The Athi River-based East Africa Device Assembly Kenya Limited (EADAK) follows the government’s promise to establish a local smartphone assembly with a capacity to produce up to 3 million units annually.
EADAK’s chairman Joshua Chepkwony told journalists during the launch that the devices will retail from Ksh.7,499.
The anchor mobile phone devices at launch will be the 4G-enabled Neon 5-inch “Smarta” and 6-and-half-inch “Ultra”, with EADAK seeking to unveil a locally assembled tablet in the coming months.
It is projected that the factory will generate between 300 and 500 direct jobs.
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