The move is aimed at reducing government tax expenditure and ensuring value for money as the government seeks to attract more private capital into infrastructure development.
The National Treasury has said it will not introduce new tax incentives for Public-Private Partnership (PPP) projects, urging investors to instead take advantage of existing tax concessions.
The move is aimed at reducing government tax expenditure and ensuring value for money as the government seeks to attract more private capital into infrastructure development.
Ahead of the 16th Africa Public-Private Partnership Symposium in Nairobi, Treasury said the current tax framework provides sufficient incentives for investors, with any future concessions subject to stricter scrutiny.
National Treasury Principal Secretary Dr Chris Kiptoo said the government was reviewing tax breaks across various sectors, citing limited returns compared to the revenue forgone.
“We are in a tight fiscal space. We are already looking at the tax expenditures we have incurred in many sectors for which we don’t seem to be getting commensurate benefits for our people. That’s why we are beginning to say we need to lower tax expenditure; it means any of the benefits given before are now being reconsidered again,” Kiptoo said.
Treasury maintained that investors would continue to enjoy existing concessions provided for under the law, while the government focuses on creating a stable environment for…
