Category: Business Daily

Whenever Kenya’s budget season is brought to the fore, the phrase ‘medium-term revenue strategy’ is repeatedly uttered by policymakers, professionals, and the public during the debate and public participation on the proposed revenue-raising measures.

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The Medium-Term Revenue Strategy (MTRS) is a policy framework for tax system reform aimed at boosting domestic revenues. Approved in 2024, the first MTRS covers financial years (FY) 2024-25 to 2026-27 and aligns with the Bottom-Up Economic Transformation Agenda.

The MTRS sets an ambitious goal of raising the tax-to-Gross domestic product (GDP) ratio to 20 percent by FY 2026-27, which is meant to reverse a decade-long decline in Kenya’s tax-to-GDP ratio.

Specifically, ordinary revenue as a percentage of GDP had declined from 18.1 percent in FY 2013-14 to 14.3 percent in FY 2022-23.

To reverse this trend, the strategy has adopted two key pillars. First among them is the implementation of tax policy reforms aimed at broadening the tax base, adjusting tax rates where necessary, and reviewing and rationalising tax expenditure.

The second core pillar is tax administration reforms, which entail modernising the Kenya Revenue Authority’s (KRA) systems and improving compliance enforcement.

In the first two years of the MTRS period, the government has enacted several tax measures, primarily through the annual Finance Acts.

For instance, through the Finance Act 2025, the government has reviewed the tax regime for betting and gaming services to impose excise duty and withholding tax on amounts deposited and withdrawn from gaming wallets, rather than on the amounts staked or won. Further, the government raised the value-added tax (VAT) on fuel from eight percent to 16 percent.

Also, it expanded taxation to emerging sectors, such as excise duty on cryptocurrency transactions and new withholding taxes on digital content monetisation and supplies of goods to public entities.

The excise duty rates on alcoholic products were also revised to be based on alcohol content to curb health risks and raise revenue. Additionally, the government revised the corporate tax rate for branches from 37.5 percent to 30 percent and introduced a 15 percent tax on repatriated branch profits.

To tax the digital economy, the government also introduced the Significant Economic Presence Tax in 2024 to tax income earned by non-residents from digital services.

Most notably, the KRA launched the electronic invoicing system (eTIMS), requiring businesses to issue eTIMS invoices and disallowing expense deductions if not eTIMS-compliant.

However, several key MTRS proposals have faced delays. For instance, while the MTRS envisages lowering the corporate tax rate from 30 percent to 28 percent to align with global/regional averages and potentially aligning the top personal income tax rate accordingly, these cuts have not occurred, largely due to an underperformance in domestic revenue collection over the years.

Similar challenges have waylaid the implementation of the proposed reduction in the VAT rate from 16 percent to 15 percent or 14 percent.

Additionally, certain controversial VAT base expansions, such as applying it to some education and insurance services, met public resistance and have been reconsidered.

Some institutional reforms, such as the integration of all KRA systems internally and with other government systems, have encountered delays.

Other key factors have also contributed to the delays in MTRS implementation in Kenya. For instance, in mid-2024, widespread protests erupted against proposed tax measures in the Finance Bill 2024, which included higher taxes on basic goods and services.

Institutional and administrative capacity challenges have also hindered the strategy’s implementation. Fully rolling out eTIMS, for example, has been a challenge, and KRA has had to allow multiple transition periods.

Further, the MTRS’s implementation has met legal hurdles, with multiple measures such as the prior minimum tax being declared unconstitutional.

This has made the government more careful in reintroducing such measures, taking time to redesign them to withstand legal scrutiny.

More recently, parts of the Finance Act 2023, including the Housing Levy, were declared unconstitutional, making implementation uncertain.

Kenya’s MTRS status as of 2025 is a work in progress, with important reforms achieved but many still underway. Harder reforms, which may be unpopular, such as motor vehicle circulation tax and taxes on agricultural produce, or those needing complex operational capacity, are lagging.

Learning from peer countries’ experiences, Kenya can refine its strategy to ensure that the remaining MTRS measures are executed effectively.

Kenya’s experience with the MTRS, marked by ambitious goals and mixed implementation progress, is not unique.

Several other countries have adopted MTRS frameworks since the concept was introduced around 2016, with varying degrees of success. On the continent, countries such as Rwanda and Benin are in the formulation stage of their MTRS, as per the Platform for Collaboration on Tax (PCT), which is a joint initiative between the International Monetary Fund (IMF), the Organization for Economic Co-operation and Development (OECD), the United Nations (UN) and the World Bank Group (WBG). Other countries such as Senegal are in the early implementation stage, while countries such as Egypt and Uganda are in the more advanced Implementation stage. For context, Kenya is classified in the pre-formulation phase of its MTRS, signalling that Kenya is far behind some of its regional peers.

The comparative experiences from the above countries highlight a few strategies for more effective MTRS implementation.

For instance, countries such as Rwanda and Egypt have high-level political commitment and support, including clear direction from the Executive and the National Treasury, which helped tax reforms maintain momentum.

Crucially, the outstanding countries are proof that strengthening tax administration as a priority is a key indicator of MTRS success.

For example, Senegal prioritized establishing a Large Taxpayers Unit (LTU) and upgrading its information technology (IT) systems, which has yielded higher revenue collection.

When many people think of breast cancer, they imagine it as a disease that mostly affects older women. Yet doctors in sub-Saharan Africa are raising a red flag, more and more younger women are being diagnosed, often much earlier than their counterparts in Western countries.

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This troubling trend is not limited to breast cancer alone, other cancers are also appearing more frequently in younger people. While genetics may play a role, more research is needed to fully understand whether environmental factors, lifestyle, or yet-unidentified risks are also driving this pattern.

This shift carries profound implications for how women of all ages should think about their health. The first and most important message is that every woman must know her breasts.

Being familiar with how your breasts normally look and feel can help you quickly notice if something unusual develops, whether it’s a lump, skin dimpling, nipple discharge, or any other change.

For younger women, this awareness is even more vital because routine mammograms are not typically recommended until after age 40. Instead, doctors often rely on ultrasounds, which are better suited for examining younger, denser breast tissue.

Breast density itself is another term that can be confusing. Simply put, it describes how the breast appears on imaging. Younger women usually have denser breasts because they contain more milk-producing (glandular) tissue.

On a scan, this makes the breast look more solid and compact. While density doesn’t necessarily increase the risk of cancer, it can make it harder for mammograms to detect problems, which is why alternative imaging like ultrasound or MRI may be recommended.

For many women, one of the hardest questions is how treatment might affect fertility.

Chemotherapy and certain hormonal treatments can temporarily disrupt the cycle of egg release, and in some cases, may have longer-term effects on fertility, while fertility does dip during treatment, many young women have successfully undergone therapy and later had children.

Read: WHO ranks Kenya as Africa’s top in breast cancer control

Today, doctors are increasingly offering fertility preservation options, such as freezing eggs or embryos before treatment begins, to give women more choices for the future.

Breast surgery typically comes into the picture as one of the first major steps in breast cancer treatment. In cases where the cancer is caught early and remains localised, surgery is often performed immediately to remove it.

If the tumor is small, a lumpectomy (removal of just the lump and some surrounding tissue) may be enough. For larger tumors, or when cancer involves multiple areas of the breast, a mastectomy (removal of the whole breast) may be recommended. In other situations, doctors may begin with chemotherapy to shrink the tumor, making surgery easier and less invasive.

Surgery can also include removing lymph nodes under the arm to check if the cancer has spread. The timing and type of surgery depend on the stage of the cancer, overall health, and the woman’s preferences, but it remains one of the critical aspects of breast cancer care.

The decision between a lumpectomy and a mastectomy has also been a challenge for many women and depends on factors like the size and location of the tumor, whether multiple tumors are present, and sometimes, the patient’s own preference. Both approaches can be highly effective, and in many cases, they are paired with additional treatments such as radiation therapy, chemotherapy, or hormone therapy to reduce the chance of recurrence.

One of the most encouraging advances in modern medicine is the shift toward personalised medicine. In the past, breast cancer was treated as a single disease.

Today, doctors analyse tumors at a genetic and molecular level to determine the best approach for each patient. For example, some cancers are fueled by hormones and respond well to drugs that block estrogen production, while others carry changes in specific genes and can be treated with targeted therapies. This precision-based care has significantly improved outcomes, offering women not just longer survival but better quality of life.

Genetics play an important role in understanding breast cancer risks. Many people have heard of BRCA1 and BRCA2, but the terms can sound intimidating and abstract.

These are simply genes we all have. In their normal form, they act like repair workers, fixing broken DNA and helping prevent cancer from developing.

But when there is an inherited fault, or mutation, in one of these genes, the repair system doesn’t work properly. As a result, the risk of breast and ovarian cancer rises sharply.

Women with these impaired genes can face up to a 70 percent lifetime risk of breast cancer compared to the much lower risk in the general population. The good news is that genetic testing can help identify women who carry these mutations, allowing for closer monitoring and preventive options.

Life after treatment is another area where medicine has advanced. For women who undergo mastectomy, breast reconstruction can help restore the breast’s shape using either saline/ silicone implants, or tissue from another part of the body. Reconstruction not only helps with physical recovery but also plays a powerful role in emotional and psychological healing.

The focus in modern breast cancer care is not only on survival but also on ensuring women live full, dignified lives after their treatment.

Several risk factors are known to increase the likelihood of breast cancer.

These include obesity, smoking, heavy alcohol use, long-term hormone replacement therapy after menopause, and even certain herbal treatments that contain estrogen-like compounds. However, having a risk factor does not mean a woman will definitely get cancer; it simply highlights the need for vigilance and regular checkups.

In Kenya and across much of sub-Saharan Africa, one of the greatest challenges remains late diagnosis. Many women present to hospitals at advanced stages of the disease, when treatment options are more limited and survival rates are lower.

The barriers include the high cost of diagnosis and treatment, fear of the disease, and limited access to specialists and diagnostic tools, especially in remote areas.

Breast cancer is not a death sentence. But it can become deadly if diagnosis is delayed. Early detection, timely treatment, and consistent follow-up are the keys to survival. Go for your screening today and get to know your breasts.

Breast cancer when caught early is often treatable, and with the advances in care today, survival and recovery are more possible than ever before.

A clearing and forwarding company has been ordered to pay duty, interest and penalties totalling more than Sh1 million for a luxury sports utility vehicle (SUV) that it claimed was stolen en route to Uganda.

The Tax Appeals Tribunal dismissed Seaways Kenya Limited’s application, stating that the firm had not met the conditions for cancelling the transit bond after claiming that the BMW X5 had been stolen at gunpoint.

If you visit any of Kenya’s golf courses at the weekend, you’ll see familiar faces from boardrooms and C-suites striding across the fairways. These are men and women who have built companies, closed billion-shilling deals and steered industries. Yet many of them fall into avoidable traps when they pick up a club, which keeps their handicaps high.

Professional golfer Simon Njogu, who is currently competing in the Professional Golfers Kenya (PGK) Equator Golf Tour, says that this paradox is no coincidence; it mirrors the very mindset that drives success in business. The only difference is that, unlike in business, money can’t buy better scores in golf.

The share of expenditure on salaries in county budgets rose to a three-year high in the 12 months to June 2025, highlighting the deepening struggles by the devolved units to free up cash for development projects.

An analysis of the expenditure by the 47 devolved units shows that 46.8 percent (Sh470.74 billion) of their budgets was spent on paying salaries and allowances in the year under review. The last time this share was higher was in the year to June 2022 at 47.4 percent.

The Auditor-General has called out the Central Bank of Kenya (CBK) for breaching the law by deducting Sh3 billion upfront from debt collected on behalf of the exchequer as its agency fees in the fiscal year ended June 2025.

Auditor-General Nancy Gathungu said CBK’s management was in breach of the Public Finance Management Act in deducting its agency fees, worth Sh3 billion, at source and remitting only the net proceeds to the exchequer.

I recently visited Raila Odinga (now deceased) at his private office in Kileleshwa. He had invited me to discuss the government’s recent decision to lease sugar companies – and to reflect on some of the major projects taking shape in Kisumu.

An engineer by training, Raila was in his element talking about manufacturing. His eyes lit up as he recounted how, as a young engineer, he had set up an LPG manufacturing plant from scratch – working out of a modest shed allocated to him by the Kenya Industrial Estates.

There are no forests of bulky, suited, neckless bodyguards when Dr Abraham Korir Sing’Oei arrives. His arrival is, in fact, the antithesis of power. Which means he doesn’t arrive, he shows up. With only one car, I’m told.

Impeccably suited and striding through the hotel with an easy, officious elegance, save for the lapel pin of the flag, he could easily pass for an auditor, an investment banker, or a corporate executive. In truth, he is a lawyer, an international law expert and convener of the Open Government Partnership for Kenya.

According to the 2023 Tax Expenditure Report, the total expenses increased to Sh393.6 billion in 2022, which was equivalent to 2.94 percent of the gross domestic product (GDP). This was an increase from Sh292.9 billion in 2021, equivalent to 2.44 percent of the GDP.

Notably, domestic value-added tax (VAT) was the largest contributor to the tax expenditures at 36.94 percent with corporate income tax following with 19.87 percent while VAT on fuel contributed 16.38 percent.

According to the Medium-Term Revenue Strategy for 2024-25 to 2026-27, the ordinary revenue collection as a percentage of GDP declined from 18.1 percent in 2013-14 to 14.1 percent in 2022-23. This is due to, among other reasons, an increase in tax expenditure and low tax compliance.

Over the past decade, the Treasury and legislators have introduced a wide range of goods and services to either the exempt or zero-rated categories.

The enactment of the VAT Act, 2013 elicited a lot of reaction from business circles and consumers alike.

Amid the outcry from certain sections of the economy it was lauded as a major milestone by the government in simplifying the tax laws.

The complexity of the repealed Act mainly caused by the long list of exempt and zero-rated goods and services was a major headache for businesses. Lest we forget, the long list was because of numerous amendments made over the years.

Businesses had to contend with endless changes to the classification of goods and services in the VAT Act, with some of them occasionally being caught up on the wrong side of the law, and as a result, suffering unwarranted penalties and interest. The cost of doing business was consequently high due to unpredictability in the VAT status of certain goods and services.

The principle of simplicity in taxation states that a tax should be formulated in a simple language that is easily understood by all who are subject to it. It should not be subject to multiple interpretations and constant change. To keep it as simple and clear as possible, a tax must have minimal exemptions.

In the current ever-changing global economy, certainty cannot be guaranteed. Businesses, however, need some level of certainty to be able to make long-term investment plans and decisions. A stable, predictable and reliable taxation system is critical in fulfilling the principle of certainty in taxation.

While it is inevitable that certain targeted tax measures will once in a while be taken due to changes in government priorities, economic circumstances as well as social considerations, the Treasury should be slow to use tax changes as the easiest available policy tool.

Whereas policy changes that are meant to cushion mwanachi from high cost of living, there is a need to focus on bold measures that will improve the overall economy and reduce the cost of doing business. Short-term measures are popular but do not provide the much-needed impetus to grow into a middle-income country by 2030 as envisaged in Vision 2030.

The national tax policy sets out broad parameters on tax policy and related tax matters. It also provides broad guidelines on tax administration and the general tax system. The policy proposes comprehensive review of tax laws every five years. This is in addition to the development of a framework for granting tax incentives.

The adoption of the recommended policy of reviewing tax laws every five years would give the government a chance to monitor the impact of specific tax policies and incentives.

On the other hand, businesses would operate in a more predictable tax environment thus enabling them to make long-term plans.

Political instability and civil unrest have overtaken economic volatility as the biggest threats to Kenyan businesses in 2026, forcing firms to reallocate budgets towards physical security and crisis preparedness, a new global survey shows.

The World Security Report 2025 by security firm Allied Universal and its local arm G4S, found that 45 percent of Kenyan chief security officers (CSOs) now rank political instability as their top concern, while 43 percent cite civil unrest, both well above regional averages.