EAC ministry warns Kenya to align tax laws with regional frameworks
East African Community Affairs Principal Secretary Caroline Karugu has urged the National Assembly to amend national tax laws to align with community frameworks, warning that provisions in the proposed Finance Bill, 2026 risk breaching regional treaties and triggering trade retaliation. The core issue is how goods moving within the EAC bloc are classified for tax purposes—Kenya's current law labels EAC goods as imports subject to higher excise duties, contradicting the EAC Customs Management Act, which classifies inter-state movement as a transfer.
EAC ministry warning on Kenya's tax law misalignment threatens regional trade relationships and could trigger retaliatory measures from partner states.
11 June 2026 · Capital News →