Is the Government of Kenya Introducing a Motor Vehicle Tax?

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A tweet published on March 27 contains text claiming that motor vehicle owners in Kenya will supposedly be paying an annual license fee as of July 2021.

The tweet also contains an image showing a Bill entitled ‘The Road and Safety (Amendment) Act 2021’, that introduces the annual license fee for all motor vehicles.

Background

Motor vehicle owners in Kenya have been decrying the recently hiked fuel prices.

The Energy and Petroleum Regulatory Authority on March 14 announced an increase in fuel prices, making Kenya the most expensive fuel market in the region.

At the beginning of 2021, the Digital Service Tax also took effect in Kenya. The tax that was introduced under the Finance Act 2020 seeks to charge a tax of 1.5% of the gross transactional value on income from digital services accrued in or derived from Kenya through a digital marketplace.

Verification

Piga Firimbi found that news about the Motor Vehicle Tax originates from Uganda. The Ugandan government had suspended this tax, under the Traffic and Road Safety Act in 1998, and is now seeking to reinstate it. The Ministry of Finance Spokesperson Jim Mugunga told NTV Uganda that the reintroduction of the Bill is aimed at broadening the tax base, getting rid of road unworthy vehicles as well as addressing unresolved issues in the country’s transport system.

There is no official government communication or media report from Kenya, indicating that the Motor Vehicle Tax has been introduced in Kenya.

Verdict

Claims that the Government of Kenya is introducing a Motor Vehicle Tax to apparently take effect from July 2021 are FALSE.

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Linda Ngari