Kenya Considers Ending Tax Waivers on Global Projects Financiers’

Kenya’s Treasury is currently exploring the possibility of discontinuing tax exemptions on interest income earned by international financiers, including those from China, who contribute to funding major infrastructure initiatives.

This decision is in line with the revenue-enhancing measures outlined in the Finance Act 2023, as reported by the Business Daily newspaper.

If this proposal is put into action, it is anticipated to have repercussions on the repayment of foreign loans utilized to support various large-scale infrastructure ventures, such as the Standard Gauge Railway (SGR), as highlighted by the Business Daily.

It’s worth noting that Beijing stands as the principal bilateral lender to Kenya in this context. Nairobi is expected to incur interest payments totaling $1.62 billion (equivalent to 236.8 billion Kenyan shillings) to the China Exim Bank by the conclusion of 2036 for three loans secured for the SGR project.