Kenya: Bankers Association Oppose KRA Plan to Charge VAT on Repossessed Goods

The Kenya Bankers Association has raised an alarm over a possible higher cost of loans for Kenyans if the Kenya Revenue Authority is allowed to add value-added tax on the sale of repossessed goods.

The association, while responding before a tax appeals tribunal on Sunday, May 24, KBA warns that the proposal captured in the 2026 finance bill will ultimately increase the cost of credit for borrowers across the country.

According to the Association, it will be pushing for amendments in the…