Fredrick Kimotho

Submissions on the Income Tax (Amendment) Bill 2026. @DeloitteKenya's submission says: · The proposal to exempt the transfer of property by a company to its shareholders as part of an internal reorganisation from CGT should be expanded to cover transfer of property: 1. By a company in a group to any other company within the group or its underlying owners as part of an internal reorganisation 2. By a partnership or limited liability partnership (LLP) to its partners as part of an internal reorganisation, or by partners to a partnership or LLP as consideration for such a reorganisation 3. By a partnership or LLP in a group to another partnership or LLP within the group, or to their underlying owners, as part of an internal reorganisation Their argument is that the provision contained in the Bill may inadvertently penalise such legitimate reorganisations, especially where a transfer is undertaken between companies of the same group which may not necessarily have a direct shareholding relationship. @DeloitteKenya is also proposing definition of “Internal reorganisation”, “group”, “Underlying ownership”, “Control”, “Holding company” & “Subsidiary”. The firm recommends that the definitions be included in the 8th Schedule of the Income Tax Act.

The Tax Appeals Tribunal has ruled that the principal element of a loan is capital in nature and, as such, is not deductible for tax purposes when written off as a bad debt. This decision represents a significant blow to lenders and borrowers in Kenya.

On 11 February 2026, ICPAK held a roundtable meeting with the Kenya Revenue Authority @KRACorporate to discuss current challenges and opportunities in tax policy and administration. Chaired by Commissioner George Obell and FCPA @KWaruiru, the meeting deliberated on tax base expansion strategies, the phased filing of 2025 tax returns, the Ushuru Mashinani project, and the opportunities within the eTIMS platform. CPA Obell emphasized the need to broaden the tax base, noting the declining tax-to-GDP ratio resulting from overreliance on a narrow base. He stated that this could be addressed by modernizing compliance systems to increase revenue collection without raising tax rates. He further indicated that the Authority is integrating artificial intelligence (AI) and machine learning across all tax heads to seal revenue gaps. As part of the proposed tax reforms, KRA and the @KeTreasury are considering eliminating the KSh 5 million VAT threshold to enhance equity, streamlining tax exemptions, introducing a dual-assessment regime in which both the Commissioner and the taxpayer initiate tax assessments, and establishing an eTIMS Transaction Hub to integrate processes such as supply chain traceability, geo-referencing, and auditing. ICPAK emphasized the need for KRA to align the implementation of eTIMS with other tax laws, particularly income tax provisions on exemptions. The Institute also highlighted the need to review and increase the VAT threshold, undertake training initiatives, and develop sector-based solutions, among other recommendations. On a positive note, ICPAK commended the Authority for implementing proposals from the previous meeting, including issuing notices before placing taxpayers on the special table and initiating discussions with the National Treasury regarding tax agents. The meeting was attended by representatives from various KRA departments including the Commissioner Large and Medium Taxpayers, members of the ICPAK Public Finance and Taxation Committee, and the ICPAK Secretariat. @kahemamuthui @Jabali100 @fredkim2030 ^CA

One of the big elephants in the room regarding electronic/eTIMS invoices & income & expenses validation, how do businesses claim expenses incurred in dealings with GOK when the same government isn't issuing eTIMS invoices?

Nigeria is having an ambitious overhaul of its tax regime. Effective January 1st, 2026, four new tax laws (the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Act & the Joint Revenue Board Act) take effect as the government looks to modernise the tax regime, enhance efficiency & equity in collection & streamline tax administration. Among the key things to note, · Individuals earning ₦800,000 (US$544.8) & below will now be exempt from tax as high income earners shoulder a higher tax rate of up to 25.0% · The threshold for businesses seeking exemption from Corporate Income Tax & Capital Gains Tax is being revised from ₦25.0 million (US$17,041) in annual gross turnover to ₦100.0 million (US$68,133) Here's a link to my conversation with the Chairman of the Committee spearheading the overhaul, @taiwoyedele, to make sense of the changes. youtube.com/watch?v=C61utq…

Congratulations to CPA Fredrick Kimotho on his reappointment to the Public Finance and Taxation Committee, a continued journey of service and excellence! 👏

@shobanes @AmbokoJH When you want to know anything about business please just follow @AmbokoJH . He is the best

Many thanks to our insightful speakers: CPA Dr. Grace Kamau @CeoIcpak, @KWaruiru @ednagitachu, @kahemamuthui, @fredkim2030, @RobertMainaKE and to our moderators @KWaruiru, @HillaryOnami, and @AmbokoJH, as well as everyone who tuned in, for the enriching discussion on the #FinanceBill2025. Let’s keep the conversation going! If you missed it, catch the #ICPAKSpace recording here: x.com/i/spaces/1kvJp…

Submissions/proposals for consideration in Finance Bill 2025. This was my highlight from Deloitte's submission. They argue that it's time to rethink Kenya's PAYE bands. Here's Deloitte's proposal: · We need to widen the PAYE bands · This should be done by introducing a 17.5% band & a 27.5% band · We need to do away with the top two tax bands i.e, 32.5% & 35.0% Musings: · I fully agree there's a case to widen the PAYE bands · However, I would take a different view on the 17.5% band · My proposal would be 15.0% similar to what we had with the COVID-19 adjusted PAYE bands · I would add a proposal to revise the tax free income threshold from the prevailing Kes 24,000 (Kes 30,000 perhaps)

We were honored to have our very own Karen Chelangat @chela_karrency Chief Innovation Officer at Jacob's Ladder Africa, and Fredrick Kimotho @fredkim2030, Associate Director of Tax & Legal at @DeloitteKenya, deliver the keynote address this morning. Their presence brought remarkable energy to the event, setting the stage for a day focused on innovation, collaboration, and meaningful conversations about transforming food systems. What’s your one-word reaction to what you’re seeing? Let us know in the comments using #DemoDay2025 @Sellahb @Bilha_Ndirangu @chela_karrency @LouiV @VaLydd @kevin_okwako @UNEP @cadef_ng @Cleantechhubng @wef @_globaleconomic @ASBELKEMBOI7 @PeterKariukiKE @kevolwe_godfrey @timotsi1 @NetForCommDev @am_tonie_ @MagangaPurity @jacobaffiliates @CyndyMaloba @Alfreddiaw @ST_Mwaurah369 @Mmukai14 @MuhiaWesley @Sarah_Nash11 @Vinnysdg13 @SangakaAre @George_x86 @StellaKabura @WalelaPhillip

7 years after Kenya abandoned the semi-automated Legacy Tax System which had tax payers manually file & submit returns with details of both tax returns & payments maintained in the taxpayer’s ledger, the government decided that full migration to iTax (the system that succeeded the Legacy Tax System) would be effective Jan 1st, 2025. What are the implications? · KRA directed any tax payers with queries regarding balances on their ledger accounts to raise the same by Dec 31st, 2024 after which any debit balances migrated would be deemed to be outstanding taxes. That means if it emerges that your ledger balance reflects you have taxes due, you'll be expected to pay ·Any credit balances migrated would be deemed to be overpayments available for utilisation in offsetting future tax liabilities. That means if your ledger balance reflects you have overpayments, you will use the same to offset future tax obligations But there's an issue - Some tax payers have been slapped with balances going back as far as the 1990s. Is that even legal given the Tax Procedures provision for a max of 5 years going back in assessments? I sat down with @fredkim2030 , Associate Director at @DeloitteKenya to discuss what this means. 2 things worth pointing out: · He anticipates that 2025 will be characterised by a number of disputes arising from the fact that some tax payers are now confronted with balances going back to horizons stretching beyond the 5 years window provided for by the Tax Procedures Act ·     He believes that the resuscitation of the provision for abandonment of tax because of doubt or difficulty in recovery via the Tax Procedures (Amendment) Act 2024 could provide respite in such instances

2024 has been heavy on the public finance side & there's one last thing before we close the year: · Are we all ready for the migration of ledger balances from the legacy system to iTax? · Has KRA communicated to you about the balances on your ledger due for migration? · KRA gave tax payers until December 31st, 2024 to raise any concerns regarding Value Added Tax & Income Tax balances being migrated from the legacy system to iTax · Effective Jan 1st, 2025, any debit balances migrated will be deemed to be outstanding taxes, any credit balances migrated will be deemed to be overpayments available for utilisation in offsetting future tax liabilities #BusinessRedefined's last episode for 2024 places the spotlight on this issue & the potential challenges Tonight, 7:30pm on @ntvkenya

📺#DeloitteInTheNews. Catch our Tax & Legal Associate Director, @fredkim2030 on @ntvkenya ’s #BusinessRedefined hosted by @AmbokoJH discussing the Tax Laws Amendment Act and the Tax Procedures Amendment Act.

@msaliti @AmbokoJH Arguable points there. The more reason why revenue loss should be a secondary argument.

@fredkim2030 @AmbokoJH The decision is flawed in many aspects....contravenes Art 221(6) by demanding revenue estimates be included in the Appropriation Bill/Act. Departs from CoA precedent with a lame distinguish,concurs there was PP but nevertheless declare the Act invalid for not indicating reasons

UPDATE: Treasury moves to Supreme Court on Court of Appeal nullification of Finance Act 2023 · National Treasury says the Court of Appeal judgement is untenable & presents a challenge in running the affairs of the government if upheld · National Treasury says the Court of Appeal judgement will erode Kes 164.0 billion worth of revenue already factored in 2024/25 budget numbers

Here's a good summary of the Bill from @DeloitteKenya deloitte.com/ke/en/services…

17. Link to the recording on Post Budget Analysis with @KimaniStephanie @musaunlsn, @fredkim2030 & host @Ramah_Nyang: x.com/i/spaces/1lDxL…

Yesterday on #MwangoSpaces we did a post budget analysis of the FY 24/25 Kenyan budget. Special thanks to our guests @KimaniStephanie @musaunlsn & @fredkim2030 & host @Ramah_Nyang. Cc:@BloombergAfrica, @DeloitteKenya, @Diageo_News Recording: x.com/i/spaces/1lDxL…

Tune into #MwangoSpaces today at 8pm EAT as we do a post budget analysis of the FY 24/25 Kenyan budget. Guests: —@KimaniStephanie, Economist —@musaunlsn, Africa Tax lead Diageo —@fredkim2030, Tax & legal @DeloitteKenya Host: — @Ramah_Nyang Business Journalist @BloombergAfrica

Deloitte & Touché LLP presenting their submissions on the #FinanceBill2024, this afternoon. They have recommended that Motor Vehicle Tax be payable on the value of the motor vehicle, at the rate of 0.5%…🧵