The Finance Bill 2024 has proposed the introduction of a Motor Vehicle Tax, with a rate of 2.5 per cent of the vehicle's value. Additionally, an insurer of a vehicle is expected to collect and remit the motor vehicle tax within five working days after issuing an insurance cover. The Bill warned that an insurer who fails to collect and remit the motor vehicle tax shall be liable to pay a penalty equivalent to 50 per cent of the uncollected tax and the actual amount of the uncollected tax. "The Commissioner may prescribe such guidelines as may be appropriate for determining the valuation of a motor vehicle," the Bill added. The Bill contains tax proposals that the Kenya Kwanza government wants to use to raise revenue and finance its ambitious projects.
