The firms making donations to charitable organizations registered under the companies Act and NGO coordination Act will be covered in the tax relief. This is after the national treasury changed the income tax Act that expanded the list of companies exempted from paying tax after charity donations.
The move is aimed at increasing donations to charitable organizations and improving the countries support for vulnerable Kenyans. The changes could see donations increase as the government struggle to cushion Kenyans from slow economic recovery of Covid- 19 pandemic coupled with the global dynamics including the war in Ukraine.
The pandemic and heavy taxation dried up donor funding in the country as firms operated on minimal resources, unable to support charity initiatives, due to this the national treasury has made changes to income tax and added up the list of firms exempted from the tax deduction on charity deductions. It’s otherwise believed that this will help to support the needy and vulnerable Kenyan’s as the tax is being exempted from the firms
By Asma Shaban