Religious leaders have strongly opposed the newly proposed tax regulations targeting churches, NGOs, and other institutions engaged in business activities.
Among the critics, Assistant Archbishop of the Nomiya Church, Rev. David Abaki Odhiambo, condemned the regulations, arguing that targeting religious institutions, NGOs, and other traditionally tax-exempt organizations is misguided.
Rev. Abaki emphasized that religious institutions are not businesses but driven by a calling, and taxing them undermines their societal role. He urged President William Ruto and his administration to reconsider the regulations, highlighting that churches play a crucial role in praying for the country and fostering peace and should not be subjected to taxation.
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He further suggested that the government should focus on regulating churches to ensure their correct operation rather than imposing taxes on them.
Despite the backlash, Members of Parliament have primarily supported the new tax regulations. The National Assembly Committee on Delegated Legislation, led by Ainabkoi MP Samuel Chepkonga, endorsed the Income Tax Regulations Bill (Charitable Organizations and Donations Exemptions) 2024 in a recent meeting with senior officials from the Kenya Revenue Authority (KRA).
The bill, initially proposed by former Treasury Cabinet Secretary Prof. Njuguna Ndung'u, seeks to establish criteria for charitable institutions to qualify for income tax exemptions and outline which donations will be eligible for tax deductions.
However, National Assembly Majority Leader Kimani Ichung’wa reassured religious organizations that the bill would not progress without thorough consultations with churches, emphasizing their integral role in the nation’s development.
He assured that no final decision would be made without engaging with religious groups, affirming that solid churches are essential for the country’s progress.
