Members of Parliament have approved the Income Tax Regulations Bill (Charitable Organizations and Donations Exemptions) 2024 targeting churches, NGOs, and other tax-exempt institutions.
The National Assembly Committee on Delegated Legislation, chaired by Ainabkoi MP Samuel Chepkonga, endorsed the new tax regulations proposed by former Treasury Cabinet Secretary Prof. Njuguna Ndung’u in a meeting with Kenya Revenue Authority (KRA) officials.
The Bill sets out the criteria charitable institutions must meet to qualify for tax exemptions on their income. It also specifies which donations will be eligible for tax deductions.
KRA Commissioner General Humphrey Wattanga reported that some churches and NGOs were profiting from ventures unrelated to their charitable missions.
“Many tax-exempt organizations are engaging in businesses which are unrelated to charitable purposes for which they are established to undertake without ploughing back such gains to the main objectives of the organization,” Wattanga stated.
KRA Deputy Commissioner Maurice Oray supported this view, calling for stricter regulations. The Committee approved the new tax recommendations, with Chepkonga stating, “We have reviewed the regulations and are satisfied that they comply with the law.”
