Budget Review & Emerging Tax Issues - Eastern Branch 2017 | The Institute of Certified Public Accountants of Kenya | 12 April 2017 | Kenya, Africa

The 2017 Budget Policy Statement (BPS) is prepared against a backdrop of slow global economic growth owing to a more subdued outlook for advanced economies. However, the Kenyan economy remains resilient registering strong economic growth of 6.0 percent in 2016 compared to the average growth of 3.4 percent for Sub Saharan Africa and 3.2 percent for global economy. Further, our macroeconomic performance remains broadly stable with overall inflation within target, Kenya Shilling exchange rate to the US dollar remaining stable and low short term interest rates, a reflection of ample liquidity in the money market.

As taxation remains the key source of revenue for the government of Kenya, sound tax management is essential for the government to provide public services to its citizenry. Over the last decade tax performance in Kenya has significantly improved in nominal terms averaging about 24% of the size of the economy. This has enabled the government to finance 60% of the budget. World over, design and performance of the tax system has implications for inequality and as such it is the role of the government to ensure that it pursues a fair tax system for equitable distribution of income and welfare of the citizens.

We continue in our tradition of organizing seminars around the country for our members, clients and business leader to interact with the Institute’s public sector experts and draw the first lessons and implications of the national budget.

Some of the areas to be addressed include