The government will soon tax schools providing services unrelated to the country’s education curriculum.

 In the Draft Medium-Term Debt Strategy for the periods 2024/25 and 2026/27, the National Treasury says the current bracket value-added tax (VAT) exemption is unfair as some institutions offer vatable services.

Should the proposal see the light of day, learners in high-end schools will be impacted the most, as many offer lessons outside of Kenya’s education system.

“However, the benefit of the exemption is not uniform across all learners due to differences in fees charged and services provided. Some schools provide some services that are not directly related to education."

“The exemption from VAT on education that include all services provided by schools create unfairness as some services like swimming when offered out of school are vatable,” Treasury says.

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“To remove this discrimination, there is need to impose VAT on the additional benefits. In this respect, the Government will explore the introduction.”