Kenya starts VAT exemption for locally assembled tourist vehicles as hoteliers get credit facility

The Kenyan government has allocated Sh2.7 billion to boost the tourism sector in this year’s budget where Sh1 billion will be used for full sector recovery, Sh1billion for sustaining new markets. Treasury Cabinet Secretary Henry Rotich says the move is aimed at encouraging tourist operators to buy vehicles locally at a lower cost. “The tourism industry has been growing steadily despite adversities experienced in industry. In order to promote tourism further, and to make Kenya a tourism hub, I propose to exempt from VAT locally assembled tourist vehicles,” he announced.

He says apart from promoting tourism sector, the measure has taken into consideration current policy of the government to encourage local motor vehicle assembly.

Meanwhile, the government has allocated Sh2.7 billion to boost the tourism sector in this year’s budget where Sh1 billion will be used for full sector recovery, Sh1billion for sustaining new markets, Sh600 million for capital lending to hoteliers and Sh100milion to finance the revival of Fort Jesus in Mombasa.

He, however, noted the continued improvement of the sector which has previously faced pressure due to security challenges.

“The tourism sector has picked up with significance rise in the conference activities and foreign tourist arrivals.

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