Kenya Enacts New Air Travel Levy, Orders Tea Factory Loan Audit, & Cracks Down on VAT Claims - October 2025

International and domestic air travelers in Kenya will face increased air passenger service charges following the enactment of the Air Passenger Service Charge (Amendment) Act, 2025, which was signed into law by President William Ruto on October 15, 2025. In a separate directive, the Ministry of Agriculture and Livestock Development has ordered the Tea Board of Kenya to conduct a comprehensive audit of loans taken by factories managed by the Kenya Tea Development Agency (KTDA). Additionally, the Kenya Revenue Authority (KRA) is intensifying its crackdown on businesses making unverified input VAT claims. The KRA is warning of stricter audits as part of a wider tax compliance drive. This move aims to curb the exploitation of systemic loopholes that allow companies to lower their tax obligations.