The Kenya Revenue Authority (KRA) has issued a fresh update on organizations exempted from income tax as new regulations take effect.
The changes, which align with the latest tax laws, aim to streamline exemptions and ensure compliance.
In a statement on Thursday, KRA clarified that only institutions meeting specific criteria under the Income Tax Act would continue enjoying exemptions. These include charitable organizations, religious institutions, non-profit entities, and educational institutions engaged in public benefit activities.
However, KRA emphasized that all exempted organizations must reapply for their status under the revised framework.
“KRA has reviewed the list of tax-exempt organizations to ensure compliance with the updated provisions of the Income Tax Act. All affected entities must submit fresh applications to validate their status,” the statement read.
The authority further noted that organizations previously exempted but engaging in commercial activities would be required to declare and pay taxes on their business income. This move is part of broader efforts to curb tax evasion and enhance revenue collection.
Stakeholders, including NGOs and faith-based institutions, have raised concerns about the stringent requirements for exemption renewal. Some have urged KRA to simplify the application process to avoid disruptions in their operations.
KRA assured affected organizations of a smooth transition and urged them to seek guidance through its official channels. Failure to comply with the new requirements could
By Nairobi