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HomeDaily NewsSunday, October 26, 2025Kenya Enacts New Air Travel Levy, Orders Tea Factory Loan Audit, & Cracks Down on VAT Claims - October 2025
Business & Economy3 stories from 1 sources

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.

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Sunday 11:23 AMCapital Business

International flyers to pay Sh1,300 extra as flight levy goes up

International flyers to pay Sh1,300 extra as flight levy goes up

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. This revision, signed into law by President William Ruto on October 15, 2025, aims to boost funding for aviation safety, weather services, and tourism infrastructure.

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Key Highlights

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. This revision, signed into law by President William Ruto on October 15, 2025, aims to boost funding for aviation safety, weather services, and tourism infrastructure.

  • International passengers will now pay Sh6,500, an increase of Sh1,300 (25%) from Sh5,200.
  • Domestic passengers will pay Sh600, up by Sh100 (20%) from Sh500.
  • The increment is intended to fund the Kenya Civil Aviation Authority, Kenya Meteorological Department, and the Tourism Fund.
Sunday 9:48 AMCapital BusinessFirst

KRA cracks down on firms over fake VAT claims

KRA cracks down on firms over fake VAT claims

The Kenya Revenue Authority (KRA) is intensifying its crackdown on businesses making unverified input VAT claims, warning of stricter audits as part of a wider tax compliance drive. The move aims to curb exploitation of systemic loopholes that allow companies to lower their tax obligations.

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Key Highlights

The Kenya Revenue Authority (KRA) is intensifying its crackdown on businesses making unverified input VAT claims, warning of stricter audits as part of a wider tax compliance drive. The move aims to curb exploitation of systemic loopholes that allow companies to lower their tax obligations.

  • Between March and April 2025, approximately 9,000 businesses reported Sh39 billion in input VAT that KRA could not verify.
  • The crackdown is led by KRA Chairperson Ndiritu Muriithi.
  • KRA has established a special review unit to track suspicious claims and flag suppliers linked to unverifiable VAT transactions, aligning with broader tax digitization reforms.
Sunday 5:14 PMCapital Business

Govt orders audit of loans taken by KTDA-managed tea factories

Govt orders audit of loans taken by KTDA-managed tea factories

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).

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Key Highlights

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).

  • The audit was prompted by concerns from farmers over reduced bonus payments this financial year.
  • Principal Secretary for Agriculture Dr. Kipronoh Ronoh directed the audit.
  • The Tea Board has been given 14 days to submit a detailed report.
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