How Finance Bill 2024 Will Eat Into Your Pocket

The bill is heavy on indirect taxes - VAT & Excise Duty - which will likely increase commodity prices and take more from your pocket.

Greetings and welcome to the eighteenth Money Weekly Roundup of 2024! 

The Finance Bill, 2024, is currently in the public participation phase. It has elicited heated debate with Kenyans trying to wrap their heads around the measures the government intends to put in place to collect even more revenue.

The bill is heavy on indirect taxes - Value Added Tax (VAT) and excise duty - which will likely increase commodity prices and take more from your pocket.

As always, weโ€™ve included some of our favourite personal finance articles in our Finance Tips section below.

Letโ€™s dive in.

This weekโ€™s Money Weekly is brought to you by mTek

MTek makes it easy to quickly compare and apply for auto insurance via their app. Theyโ€™ve aggregated 38 insurers in one place to make sure you are always getting the best deal.

Read more about how it all works or download the mTek app to shop for the best auto insurance rates in the market.


Tax Proposals in Finance Bill, 2024

The Finance Bill, 2024, introduces a number of tax changes likely to affect the price of commodities and services. Here are some highlights:

Bread ๐Ÿž

Bread is currently zero-rated, but the Bill proposes a standard VAT on the product. This means bread will be subject to 16% VAT.

Impact: The price of bread, currently averaging Ksh65 for a 400g loaf, is likely to rise by up to Ksh10. Read More.

Transport ๐ŸšŒ

The bill proposes to introduce a motor vehicle tax, which will be charged at 2.5% of the value of the vehicle annually. This tax will be levied during the payment of insurance and insurance companies will act as the collecting agents.

The levy is capped at Ksh5,000 minimum and Ksh100,000 maximum. Read More.


  • For public transport, matatu owners will have to pass on the cost of the tax to consumers, which might increase fare.

  • For private transport, the cost of owning and using a vehicle will shoot up significantly, depending on the value of the vehicle you drive.

Electronics ๐Ÿ“ฑ๐Ÿ–ฅ๏ธ๐ŸŽง๐Ÿ”Œ

The government proposes to introduce the Eco Levy on goods considered to contribute to environmental pollution. The tax levied on these products will range from Ksh98 to Ksh1,275.

  • Impact: The eco levy will highly impact electronic prices, among other products. 

Affected products: Mobile phones, diapers, microphones, loudspeakers, earphones, monitors, projectors, ATMs, calculating machines, cash registers, rubber tyres, batteries or dry cells & plastic packing bags. Read More.

Money Transfer Charges ๐Ÿ“ฒ

If the proposed bill passes, excise duty charged on money transfer charges will shoot from 15% to 20%

  • Impact: Bank, Mobile Money and other financial transactions will become more expensive. Read More.

Alcohol and Cigarettes ๐Ÿบ๐Ÿšฌ

The new bill proposes a move from levying excise duty on alcoholic beverages per litre to charging depending on the alcoholic content of the drink, also known as alcohol by volume (ABV).

  • Wines and beers with less than 6% alcoholic content: Ksh25 per centilitre of alcohol

  • Spirits and beers with more than 6% alcoholic content: Ksh16 per centilitre of alcohol. Read More.

Impact: Charging by ABV will see the excise duty charged on drinks spike up, hence the increase in prices.

Further, the bill proposes a 15% excise duty on internet and social media advertisements related to alcoholic beverages. 

  • Impact: This will increase the cost of marketing for alcoholic drinks manufacturers, and they might pass down that cost to consumers. Read More.

Betting and Gaming ๐Ÿคž๐Ÿผ

The government is also proposing to raise the tax on stakes for a second consecutive year, from the current 12.5% to 20%. 

  • Impact: This would reduce the amount a person betting stakes; for every Ksh100, they can only stake Ksh80, which would reduce the potential proceeds if they win. Read More.

There is also a proposal to charge a 15% excise duty on social media and internet marketing relating to prize competitions, lotteries, gaming, and betting.

  • Impact: Due to the increased cost to the betting and lottery companies, the prize winnings on offer might reduce. Read More

Kenya-US Trade Talks Inch Closer to Completion ๐Ÿค

Kenya-US trade partnership conversations move to the fifth phase, with an October conclusion in sight. President Willam Ruto is expected to meet US President Joe Biden next Thursday, May 23, 2024, in a bid to finalise the deal.

Here are the major highlights of the Kenya-US deal so far:.

  • The deal is set to increase Kenya's exports to the US, which stood at $679 million (Ksh88.6 billion) in 2022

  • Kenyans will pitch more than 30 projects to American investors, targeting $20.5 billion (Ksh2.6 trillion) worth of investments.

  • Two Kenyan companies, Vivo Fashion and Wazawazi, are set to open up shop in Atlanta and Colorado

Equity Group Net Profit Rises ๐Ÿ“ˆ

In the first quarter ending March 2024, Equity Group saw its net profits grow by 25% from Ksh12.3 billion a year earlier to Ksh15.3 billion. The growth comes despite rising costs, which were offset by higher income.

  • Net income rose from Ksh21.6 billion to Ksh27.8 billion.

On the other hand, CIC Insurance Group saw an 818% profit growth after tax to Ksh1.4 billion. The impressive performance was attributed to improved investment income and growth in insurance revenue.

Hustler Fund, Fuliza and M-Pesa Performance ๐Ÿ“Š

  • Hustler Fund: A total of Ksh49.5 billion has been disbursed to more than 21 million Kenyans through the governmentโ€™s Hustler Fund loan facility.

  • According to Safaricom, the Fund has a 77% repayment rate meaning that at least Ksh11.4 billion is in default.

  • Fuliza: In the year ended March 31, 2024, Kenyans borrowed at least Ksh2.3 billion every day through the Fuliza overdraft service. 

  • M-Pesa: Deposits saw a Ksh10.6 billion drop, signaling more withdrawals to cash and other platforms such as banks.

Want more details? Check our full weekly update here:


This weekโ€™s finance tips

Welcome to Money254's Money Tips! Here, we share quick and easy tips that make understanding and managing your money a breeze. We break down the tricky parts of your finances and the financial landscape, making it simple and clear for you. Stay tuned for helpful tips every week.


How eTIMS Makes it Hard to Avoid Paying Tax in Kenya

In todayโ€™s MoneyTok, we explore how the tax order ushered in by the adoption of the ElectronicTax Invoice Management System (e-TIMS) enforces tax compliance by requiring all tax-deductible expenses to be supported by an invoice generated via e-TIMS. This makes it harder to under-declare tax obligations. Watch Video and read more about eTIMs here.


๐‡๐จ๐ฐ ๐ž๐“๐ˆ๐Œ๐’ ๐Œ๐š๐ค๐ž๐ฌ ๐ข๐ญ ๐‡๐š๐ซ๐ ๐ญ๐จ ๐€๐ฏ๐จ๐ข๐ ๐๐š๐ฒ๐ข๐ง๐  ๐“๐š๐ฑ ๐ข๐ง ๐Š๐ž๐ง๐ฒ๐š. New #tax order requires all tax-deductible expenses to be supported by an invoice ge... See more

Thatโ€™s a wrap for this weekโ€™s Money Weekly!

Eric and the Money254 editorial team.

โค๏ธ Share with a friend

Thanks for reading. If you liked this weekโ€™s Money Weekly, weโ€™d love for you to share it with a friend.

If this email was forwarded to you, you can subscribe here.