EASTERN AFRICA - The Africa Tax Review

Uganda Revenue Authority Urges Landlords to File Rental Income Tax Before June 30 Deadline

Uganda Revenue Authority Urges Landlords. The Uganda Revenue Authority (URA) has issued a firm reminder to all landlords across the country: ensure your rental income tax returns are filed and …

Kenya’s Parliament has officially passed the 2025 Finance Bill, setting the stage for President William Ruto’s assent. The legislation, aimed at increasing domestic revenue collection, has sparked significant attention both for its tax compliance targets and for the withdrawal of a contentious proposal involving access to taxpayer data. Kenya Approves 2025 Finance Law: Data Access Proposal Struck Out A major talking point during deliberations was the Kenya Revenue Authority's (KRA) attempt to secure unrestricted access to taxpayers' financial information. The move drew sharp criticism from civil rights groups, opposition figures, and legal experts over potential breaches of privacy and constitutional protections. Responding to the public backlash, the parliamentary finance committee rejected the proposal earlier in the week. Lawmakers ultimately agreed that existing legal provisions already allow KRA to obtain financial records—so long as court approval is granted. Tax Compliance Takes Priority Despite the data access controversy, the broader thrust of the Finance Act remains clear: strengthening tax enforcement and improving compliance. The law is expected to help generate an additional KSh 30 billion (approximately $233 million), addressing a growing budget deficit without introducing sweeping new tax increases. Finance Minister John Mbadi, who presented the 2025/26 budget to Parliament, reiterated that boosting revenue without destabilizing the economy is a central policy priority. The proposed KSh 4.29 trillion ($33 billion) budget relies heavily on improving tax administration. Rwanda Introduces Sweeping Tax Reforms for 2025/26 Avoiding Last Year’s Mistakes Observers say the government is walking a fine line this fiscal year, wary of the backlash that followed the 2024 Finance Bill. Last year’s tax proposals sparked nationwide protests, resulting in over 60 deaths and a partial rollback of the planned KSh 346 billion in new tax measures. By narrowing its focus to enforcement and compliance rather than broad tax hikes, the 2025 law is seen as a more measured approach to domestic revenue mobilization. Next Steps: Presidential Assent With legislative approval secured, the bill now moves to President Ruto’s desk. His assent would make the Finance Act law and allow its provisions to take effect at the start of the 2025/26 fiscal year on July 1. Analysts: Compliance-Based Strategy a Safer Bet Tax experts commenting on the development noted that while the KRA’s push for expanded access to taxpayer data was ambitious, the retreat from the proposal likely preserved public trust and safeguarded constitutional norms. They also emphasized that a strategy focused on tightening existing loopholes, enhancing audits, and encouraging voluntary compliance could deliver long-term revenue growth without inflaming social tensions. Fiscal Tightrope for Kenya Kenya’s 2025 Finance Law reflects a delicate balancing act: increasing revenue while maintaining taxpayer confidence and respecting civil liberties. The coming fiscal year will test the success of this strategy, particularly in how it translates into real gains for the national treasury. As Kenya navigates fiscal pressures and public sentiment, this year's finance framework may serve as a model for other African economies pursuing compliance-driven tax reform.

EASTERN AFRICA

Kenya Approves 2025 Finance Law with Focus on Tax Compliance

June 23, 2025June 23, 2025 - by Jeremiah Amosu - Leave a Comment

Kenya’s Parliament has officially passed the 2025 Finance Bill, setting the stage for President William Ruto’s assent. The legislation, aimed at increasing domestic revenue collection, has sparked significant attention both …

EASTERN AFRICA

Rwanda Introduces Sweeping Tax Reforms for 2025/26

June 23, 2025June 23, 2025 - by Jeremiah Amosu - Leave a Comment

Rwanda Introduces Sweeping Tax Reforms for 2025/26: Businesses Urged to Prioritize Compliance. In a bold fiscal move aligned with Rwanda’s 2025/2026 National Budget, the Ministry of Finance and Economic Planning, …

EASTERN AFRICA

Uganda Offers Three-Year Tax Holiday for Startups in Sweeping Fiscal Reforms

June 13, 2025June 13, 2025 - by Jeremiah Amosu - Leave a Comment

Uganda Offers Three-Year Tax Holiday. In a bold move to stimulate formal entrepreneurship and expand the country’s tax base, Uganda’s Finance Minister, Hon. Matia Kasaija, has announced a comprehensive tax …

EASTERN AFRICA

Ugandan Manufacturers and Tax Authority Collaborate to Address Tax Challenges Amid Upcoming Reforms

June 2, 2025June 11, 2025 - by Jeremiah Amosu - Leave a Comment

Ugandan Manufacturers and Tax Authority Collaborate to Address Tax Challenges Amid Upcoming Reforms. In a concerted effort to tackle pressing tax-related challenges, the Uganda Manufacturers Association (UMA) and the Uganda …

EASTERN AFRICA

World Bank Recommends Carbon Tax on Fuels to Boost Kenya’s Revenue and Climate Goals

May 31, 2025June 11, 2025 - by Jeremiah Amosu - Leave a Comment

World Bank Recommends Carbon Tax on Fuels to Boost Kenya’s Revenue and Climate Goals. The World Bank is advising the Kenyan government to implement a carbon tax on imported fuels …

EASTERN AFRICA

Rwanda Rolls Out New Taxes to Boost Revenue and Spur Development

May 30, 2025May 30, 2025 - by Jeremiah Amosu - Leave a Comment

Rwanda Rolls Out New Taxes to Boost Revenue and Spur Development. Rwanda has officially implemented a comprehensive tax reform package, introducing several new levies aimed at expanding the country’s revenue …

EASTERN AFRICA

Real Estate Sector in Kenya Raises Tax Concerns Over Finance Bill 2025

May 29, 2025May 29, 2025 - by Jeremiah Amosu - Leave a Comment

Stakeholders warn new tax proposals may hurt housing affordability and investor confidence Real Estate Sector in Kenya Raises Tax Concerns Over Finance Bill 2025. A coalition of real estate professionals …

EASTERN AFRICA

Ethiopia Rakes in Over 640 Billion Birr in Taxes Amid Crackdown on Evasion and Illicit Trade

May 20, 2025May 20, 2025 - by Jeremiah Amosu - Leave a Comment

Ethiopia Rakes in Over 640 Billion Birr in Taxes Amid Crackdown on Evasion and Illicit Trade. Ethiopia’s Ministry of Revenue has reported a significant upswing in tax collections, signaling intensified …

EASTERN AFRICA

30% Tax Prepayment Required for Uganda Tax Appeals

March 13, 2025March 13, 2025 - by Jeremiah Amosu - Leave a Comment

The new tax prepayment requirement is set to take effect on March 11, 2025. In a bid to enhance tax compliance, the Uganda Revenue Authority (URA) has introduced a new …