Agriculture Ministry seeks VAT removal on crop processing machines

The Ministry of Agriculture and Livestock Development is in talks with the Finance Ministry to remove VAT on crop processing machinery.

Minister Peter Kagwe said the proposal would improve investment in the agricultural sector and boost the competitiveness of Kenyan products.

He made the remarks during the launch of Sonalika tractors by Elgon Kenya at the KICC Hall in Nairobi.

Tractors are already tax-exempt and Sonalika models start at around Sh1.4 million. The company partners with banks to offer loans of up to 90 percent.

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Gas station pumps displaying higher fuel prices due to tax changes, with government building in background.
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Government starts gradual phase-out of fuel tax reductions

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The Council of Ministers approved on Monday a new package of measures that ends the VAT cut on petrol and diesel from Tuesday and gradually reduces the special tax until October.

The National Treasury and the Ministry of Agriculture have announced separate public auctions of government assets scheduled for June 30, 2026.

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Innovators in agricultural technology have been urged to develop affordable and user-friendly tools suited to Kenya's smallholder farmers.

The Kenyan government has proposed new tax measures on second-hand clothing and mobile phones as part of the Finance Bill 2026. Treasury Cabinet Secretary John Mbadi tabled the bill in Parliament at the end of April.

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The Kenya Revenue Authority came under parliamentary scrutiny on Thursday over its clearance of imported raw sugar that received nearly Ksh3 billion in tax exemptions.

Mitumba traders have proposed a five per cent presumptive tax on imported second-hand clothes during public participation on the Finance Bill 2026.

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Kiharu MP Ndindi Nyoro has urged the National Assembly to amend laws and cut taxes to bring down fuel prices. His proposals follow recent sharp increases announced by EPRA.

 

 

 

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