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Originally published by The Standard BusinessJune 2, 2026
1w ago
Traders reject proposed VAT on aircraft parts
Importers and exporters have opposed the proposed 16 per cent VAT on aircraft spare parts in the 2026 Financial Bill, saying it would increase the cost of freight...
✨ Key Highlights
Importers and exporters are strongly opposing key proposals in the Finance Bill 2026, particularly the introduction of a 16% VAT on aircraft spare parts, which they believe will significantly increase the cost of freight and hinder trade.
- The Shippers Council of East Africa (SCEA) is leading the opposition, warning that the proposed taxes will increase operational costs across the air cargo supply chain.
- Key concerns include the reintroduction of the Railway Development Levy (RDL) and Import Declaration Fee (IDF), which will further inflate import and export expenses.
- The SCEA argues that these measures threaten food security and Kenya's position as a regional aviation and logistics hub, urging the government to reconsider the tax increases and conduct an economic impact assessment.
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