•Thursday, June 12, 2008
Budget theme: Working together to building a cohesive and equitable Kenya
- Budget tagged at 707 billion Kshs. 36% to be financed through domestic borrowing, as usual no donor funding was factored in.
- Reduction of import duty on barley
- 4billion to expand the geothermal plant
- Economic growth projected at 4.6%
- 25% ownership of investment firms cap to be effected in 3 years
- Paid up capital of stock brokerage firms increased from Kshs 5m to 50m
- Paid up capital or investment banks increased from 30m to 250m for investment banks
- All vehicles to be registered before custom clearance
- IDs registration at 16 years
- Removal of duty on telecommunications equipment
- Bypass to be prioritized
- Import duty on cars specifically designed for garbage collection removed
- Motor cycles less 2500cc zero rated
- 900m for construction of Garissa - Hola road to be exclusively constructed by NYS
- NYS graduates to be absorbed into the military
- Roads received highest capital expenditure at 21.6% at KShs 65 billion
- Railway infrastructure to be expanded
- Business Regulations Reform Unit Established
- Anti-Money Laundering Act to be enacted
- Youth Enterprise Fund increased by KShs 0.5bn (established in last year's budget with a capital of 1bn)
- KShs 1m for each constituency for purchase of sporting kits
- Introduction of taxes on MPs allowances
- AGM information to bow be distributed electronically
- Increase of excise duty on cigarettes
- Malt based beer up by KSh 4 per litre
- Alcohol By Volume (ABV) taxation regime introduced on wines and spirits
- Penalty of 5% on insurance companies if claim not paid within 90 days
- Excise duty bull to be tabled soon in parliament
- Import duty reduction on gymn equipment for hotels
- Removal of duty on computer printers
- No donor support factored in the current budget
- National Bank of Kenya to be privatised
- Basic taxes not increased inc VAT retained at 16%
- Tax on wheat reduced to from 35% to 10%
- Bread and rice zero-rated. Wheat flour and maize flour zero rated last year
- Infrastructure bonds to be issued
- International air travel zero-rated
- 1.5 billion for the recruitment of teachers
- Mombasa to be made a free port
- 1600 nurses to be employed
- Bill for cowboy contractors to be established
- Import duty of cement reduced from 40 to 25%
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2 comments:
Tax on wheat reduced to from 35% to 10%
-Yay!
Unfortunately, no change in prices so far. Bet Kenyans were taken for a ride, again!