Oxfam Kenya and the Institute of Public Finance (IPF) have proposed the reintroduction of a motor vehicle tax as part of a broader wealth taxation framework. Unlike the proposal in the 2024 Finance Bill, the groups want differentiated rates based on a vehicle’s value, meaning owners of high-end vehicles would pay more than those with lower-value cars.
The organisations argue that any new levy should clearly define taxable wealth, who is liable, how the tax is calculated and how it will be collected. They also want policymakers to review whether insurance companies should remain the collection point.
The groups say a wealth-based vehicle tax could help broaden Kenya’s tax base while reducing reliance on income and consumption taxes.
