Church and NGO Tax Proposal Sparks Public Participation Demand

The ongoing debate surrounding the proposed tax regulations targeting churches and NGOs in Kenya has sparked concerns, particularly among religious leaders in Siaya County. These leaders, led by Archbishop Patrick Nyagudi of the Church of Christ in Africa (CCA), are demanding that the government engage the public in discussions before any laws are implemented. They argue that churches, such as the CCA, do not generate substantial incomes that can be taxed, as most of their resources are reinvested into charity work and community development.

Their stance highlights a broader concern about how the new tax regulations may affect religious and charitable organizations, which often rely on donations and offerings to carry out their missions. Reverend Nashon Adoche reinforced this point by emphasizing that churches, despite the income they generate, already submit annual returns and make payments to the Attorney General’s office. Therefore, further taxation would place an unnecessary burden on them. He also noted that some religious leaders already contribute to taxes through their private investments.

The proposed Income Tax Regulations Bill (2024), championed by former Treasury Cabinet Secretary Prof. Njuguna Ndung’u, outlines requirements for charitable institutions to qualify for tax exemptions and defines the types of donations that would be eligible for tax deductions. While the bill has gained support from Members of Parliament, including the National Assembly Committee on Delegated Legislation, there are also political voices cautioning against its rushed implementation.

National Assembly Majority Leader Kimani Ichung’wah assured religious organizations that the bill would not proceed without thorough consultations. His statement acknowledges the vital role churches play in Kenya’s social fabric, stressing that no nation can progress without strong spiritual and moral foundations.

This debate touches on key issues about governance, public participation, and the delicate balance between generating revenue for the government and maintaining the integrity and functionality of institutions that rely on donations for their charitable work. As the conversation develops, it will be interesting to see how the government navigates the input from various stakeholders while ensuring the country’s tax laws are fair and effective.