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{
"id": 1511305,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1511305/?format=api",
"text_counter": 381,
"type": "speech",
"speaker_name": "Kikuyu, UDA",
"speaker_title": "Hon. Kimani Ichung’wah",
"speaker": null,
"content": "should do away with that levy. I am not saying there is anything wrong with people going to the Serengeti or other parks in the neighbourhood, but of course our Maasai Mara is the best destination in the whole world. Even our neighbours know that and concede. That is why we must encourage many tourists around the world to visit the Mara. After the Mara, then they can follow the animals into Serengeti but they start with the Mara before going to Serengeti because we are the most hospitable people in the world; it is known. We also have the most beautiful animals, including those wildebeest and lions. Let me not speak on the issue that the Chairman already spoke to, on the e-tims and invoices. We touched on some of them in the morning, for example, the avocados and agricultural inputs that the mover spoke to in the other Bill. However, on enhancement of investment incentives, Clause 15(4) of the Bill also sought to reduce the rate of capital gains tax from 15 per cent to 5 per cent for firms certified by the Nairobi International Financial Centre Authority. Further, it reduces the threshold of investments that qualify for the lower rate from Ksh5 billion to Ksh3 billion invested in at least one entity incorporated or registered in Kenya within a two-year period. Additionally, the transfer of investments must occur after five years from the date of the initial investment. This speaks to the whole policy on seeking to attract more investments or create investment incentives for people to invest in our country. Hon. Temporary Speaker, I am skipping so many things to avoid being repetitive and also give others an opportunity. Therefore, I want to end it there. I have spoken to the most salient issues that I wanted to speak to but more importantly, there is the issue of gratuity. Over the past years, people have worked for years, including Members of Parliament who served this House for five or 10 years and retire or their term comes to an end and are paid gratuity at the end of the term. The Committee is now proposing that Kenyans who earn gratuity, since that gratuity was part of the money they contributed while in active service and they were paying taxes, it is not fair that at the end of their service we still tax that gratuity. Therefore, that gratuity is now being exempted from tax. Members who opt for gratuity will now enjoy their gratuity tax-free. This is other than myself, Hon. (Dr) Nyikal and Hon. Makali Mulu who have opted for the pension option. This applies to all Kenyans; it will be that way. On the question of significant economic presence tax, it is important that I clarify that this was for non-residents and not for Kenyan residents. Therefore, it is important to mention that. The other important thing I would like to mention is on the reliefs; both on the housing levy fund relief and the Social Health Insurance Fund relief. Currently, we have no relief on the housing fund levy, because they got lost with the loss of the Finance Bill, 2024. We also have no relief on SHIF. However, the proposed amendments in this Bill will help us get reliefs that will be tax deductible. It is not just the relief, but the Bill will align what was referred to in the act as NHIF to SHIF so that the reliefs you enjoyed under NHIF will now be enjoyed under SHIF. More importantly is that we are putting back money to the pockets of Kenyans. When the Departmental Committee on Finance and National Planning traversed this country, people were crying that they are being overtaxed but they want money back to their pockets. The Committee agreed with them, in line with what is being proposed in this Bill, to put back money in the pockets of Kenyans. Every contribution that is deducted in your payslip, either to the housing fund, through the housing levy fund, is now tax deductible. The contribution will be tax deductible upon passage of this Bill. That is why I urge all of you to support this Bill. The 2.75 per cent contributions that Kenyans are making towards the Taifa Care from their payslips will be tax deductible. That means that you will be taxed before you pay your Pay as You Earn (PAYE). Currently, you are almost being taxed twice because you had to pay SHIF and housing fund then they deduct your PAYE. Now those will be factored in on top of your payslip before they start levying PAYE. Therefore, that means for someone, for instance, who is earning about"
}