By: John Kariuki
The Matatu Owners Association under the Leadership of Mr. Albert Karakacha, has voiced its concerns over the proposed Motor Vehicle tax of 2.5%.
Notable among these proposals is the introduction of a contentious motor vehicle tax set at a rate of 2.5% of the value of the vehicle, with a floor of KES 5,000and ceiling of KES 100,000.
Mr. Karakacha observed:
“At a macro-economic level, Kenya’s economy has demonstrated resilience, growing by 5.6% in the first three quarters of 2023, exceeding global and regional averages. The projected growth for 2023 and 2024 is 5.5%, driven by private sector growth, service sectors, agriculture, and policy measures supporting BETA. However, we are totally against the finance bill particularly on the clause imposing the 2.5% taxation.”
Karakacha added: “the imposition of additional levies and taxes through the Bill will result in massive job losses as owners of commercial and public transport vehicles will opt to register their vehicles in neighbouring countries”
He has urged the House Committee on Budget and Appropriations to consider repealing all tax increases contained in the Finance Act, 2023 and the deletion of all tax increase proposals contained in the Finance Bill 2024
“The uptake on insurance Kenya is low if the 2.5% is passed will have more fake insurance and even job loses,” he added.
Mt Kenya Times 
Martin Masinde