Sharp Daily
No Result
View All Result
Sunday, August 31, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

The Controversy Surrounding Taxation of Insurance

Duncan Muema by Duncan Muema
May 29, 2023
in News
Reading Time: 2 mins read

The Kenya Finance Bill 2023 has evoked a mixed reaction in the market, with most citizens voicing their opinions on the proposed housing levy. Another conversation regarding amendments to the Value Added Tax (VAT) Act has been gaining traction among key players in the insurance sector. The proposed amendment seeks to levy a VAT of 16% on insurance compensation. This move has sparked a heated debate among industry experts, policymakers, and business owners, all concerned about the potential consequences of such a decision.

Various stakeholders have strongly opposed the government’s plan to tax insurance payouts. Critics argue that it will discourage individuals and businesses from seeking insurance coverage, undermining the purpose of insurance as a risk management tool. Furthermore, they assert that taxing insurance payouts contradicts the fundamental principle of indemnity, where the insured party should be restored to the same financial position they were in before the loss occurred.

One key concern is the potential impact on the insurance industry. Taxing insurance payouts may lead to a decline in policy uptake, reducing the pool of funds available for insurers to cover claims. Ultimately, this would weaken the overall resilience of the economy, as adequate insurance coverage plays a vital role in promoting stability and mitigating financial risks.

Moreover, taxing insurance payouts could discourage foreign direct investment. Investors are attracted to countries with stable and transparent regulatory environments. If the proposed tax on insurance payouts is implemented, it may send a negative signal to potential investors, casting doubt on the government’s commitment to supporting businesses and protecting their interests.

RELATEDPOSTS

Why firms are shedding jobs despite survival

June 19, 2025

Opinion: Austerity wrong medicine for Kenya’s economy.

June 16, 2025

While the government aims to increase revenue through the taxation of insurance payouts, it is crucial to consider the broader implications of such a decision. Alternative measures, such as exploring additional revenue streams or improving tax collection efficiency, should be explored to ensure a balanced approach that supports economic growth without hindering the insurance industry.

Previous Post

The State Of Kenya’s Foreign Direct Investments

Next Post

Storm Over State Plan to Tax Insurance Payouts

Duncan Muema

Duncan Muema

Related Posts

News

Kick financial goals: Invest with CMMF this football season

August 22, 2025
commercial illustrator
News

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025
Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025

LATEST STORIES

The Importance of Including Pension Plans in Corporate Benefits Packages

August 29, 2025

The informal labor market and classical unemployment in the Kenyan context

August 28, 2025

Kenya’s Eurobond yields ease after S&P rating upgrade

August 28, 2025

Kenya’s strategic debt pivot: Smoothing, Strengthening, Sustaining

August 27, 2025

Bank on your paycheck: Invest smart with CMMF

August 26, 2025

Finding Balance: My Journey with Internet Self-Care

August 22, 2025

Why Young Kenyans Cannot Afford to Ignore Private Pensions

August 22, 2025

Strategies for Nairobi to emerge as Africa’s financial hub

August 22, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024