Budget to address investment in Kenyan infrastructure

22/03/2011 - Kenya property & investment news Posted by Neil King
Budget to address investment in Kenyan infrastructure

People looking to invest in Kenya could be glad to learn that the country is planning on organising its Budget to allow for further investment in the infrastructure of the country.

The government had implemented tax incentives to encourage imports and business.

However, Kenya's finance minister Uhuru Kenyatta told a news conference that the 2011/12 fiscal Budget will remove these tax incentives after the International Monetary Fund (IMF) said that Kenya's economy could get an extra 40 billion shillings in tax.

The government could achieve this through better collection of value added tax, widening tax brackets and cutting exemptions on imports, the International Business Times reported.

Carlo Cottarelli, director of fiscal affairs at the IMF, commented: "Very often these (tax) exemptions do not actually achieve what they are meant to achieve and they cause very large losses to the budget."

The extra money will help Kenya put its new constitution in place and develop its infrastructure. ADNFCR-2019-ID-800472151-ADNFCR