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Originally published by Capital Business
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business
May 27, 2026
18h ago

AMFI Seeks Bad Debt Relief, VAT Exemptions in 2026  Finance Bill

AMFI Seeks Bad Debt Relief, VAT Exemptions in 2026  Finance Bill

NAIROBI, Kenya, May 27-The Association of Microfinance Institutions (AMFI) has urged Parliament to amend the Income Tax Act to explicitly allow lenders Kenya breaking news | Kenya news today |..

✨ Key Highlights

The Association of Microfinance Institutions (AMFI) has submitted a memorandum to the National Assembly proposing significant changes to the Finance Bill, 2026. They are seeking relief on bad debts and VAT exemptions to support financial inclusion.

  • AMFI is pushing for amendments to the Income Tax Act to allow full deduction of bad debts, including principal, interest, and fees.
  • The association is also proposing VAT exemptions on the sale of collateral and repossessed assets.
  • AMFI wants microfinance institutions and digital credit providers recognized as financial institutions to access tax incentives, arguing their current exclusion creates a competitive disadvantage.

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