Manufacturers flag potential cost pressures in Finance Bill 2026 proposals
NAIROBI, Kenya, May 25- The Kenya Association of Manufacturers (KAM) has warned that the Finance Bill 2026 could significantly increase production costs Kenya breaking news | Kenya news today |..
✨ Key Highlights
The Kenya Association of Manufacturers (KAM) has warned that the proposed Finance Bill 2026 could significantly increase production costs for the industrial sector by altering tax and levy structures.
- Proposed changes include shifting key industrial inputs from zero-rated to exempt VAT status, preventing manufacturers from reclaiming input VAT.
- The KAM, representing a sector that contributes 7.1% of GDP, argues these measures will increase manufacturing costs, potentially leading to higher consumer prices.
- The lobby group is calling for a review of the proposals, urging the retention of zero-rating for critical inputs and reconsideration of measures that could destabilize industrial growth.
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