On 21st January 2021, the Eastern Africa Grain Council hosted a webinar on the newly introduced Minimum Turnover Tax, for the grain value chain actors to understand the tax and its likely implications on grain sector businesses. The webinar was organized in response to numerous concerns and grievances raised by various grain value chain actors, who sought further clarification on the motivation behind the tax, its objectives, application, and impact/implications and develop some recommendations to address the issue.
The government, through the Finance Act 2020, introduced a raft of new tax measures which took effect in January 2021 ostensibly to expand the tax-base in the country. Among the taxes that were lined up for implementation on January 1, 2021 is the minimum turnover tax. According to the Kenya Revenue Authority (KRA), the minimum tax is payable by business entities that are carrying out business and have physical presence in Kenya. The tax will be payable at a rate of one per cent of the gross sales.