G
Originally published by Ghafla! (Entertainment)entertainment
May 25, 2026
2h ago
Loans To Cost More as Banks Sound Alarm Over KRA’s 16% VAT On Repossessed Goods
Accessing credit could soon become significantly more expensive for Kenyans. The Kenya Bankers Association (KBA) has sounded the alarm over a looming spike in loan interest rates if the Kenya Revenue Authority (KRA) is permitted to levy Value-Added Tax (VAT) on the auction of rep..
✨ Key Highlights
Accessing credit in Kenya is set to become more expensive as banks warn of increased loan interest rates due to a 16% Value-Added Tax (VAT) on repossessed goods.
- The Kenya Bankers Association (KBA) is lobbying against the Kenya Revenue Authority's (KRA) proposal to levy VAT on auctioned repossessed properties, arguing it's a debt recovery mechanism, not a profit-making supply.
- A ruling by the Tax Appeals Tribunal granted the KRA permission to collect the VAT, a decision the banking sector fears will lead to reduced recovery on non-performing loans.
- Banks anticipate passing the increased costs onto borrowers, potentially tightening credit access for individuals and businesses across the country.
Continue Reading
Read the complete article from Ghafla! (Entertainment)
Advertisement
Advertisement