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It's official: MCA's car grant will attract 30 per cent tax

THE STANDARD By Dominic Omondi | February 27th 2021 at 00:00:00 GMT +0300 The taxman has deflated the spirits of Members of County Assemblies after confirming that the car grants they received from the State will be taxed. In an advisory to the chairman of the Council of Governors (CoG) Chairman Martin Wambora, the Kenya Revenue Authority (KRA) said the loan, which had been converted into a grant following a presidential decree, would attract a 30 per cent income tax before hitting the accounts of MCAs. “On the issue of ‘car grant,’ since it is payable to the said employees in form of cash, it therefore qualifies as income from employment as ‘other allowances ,” said KRA’s Commissioner of Domestic Taxes Rispah Simiyu.

It's official: MCA's car grant will attract 30 per cent tax

Fact-check: Was statement by Raila on MCAs' car grant true?

FACT CHECK ODM leader Raila Odinga at Ratanga village in Ndhiwa constituency on February 20, 2021. [Collins Oduor, Standard] ODM leader Raila Odinga’s statement on the Controller of Budget’s comments on MCAs’ car grant has been circulating online. The letter started circulating on Monday 22 February 2021 and is dated the same day.  “My attention is drawn to a letter by the Office of the Controller of Budget (OCOB) … purported that the car grant to MCAs directed by His Excellency the President is not included in the budget line,” reads the statement. The statement quotes Raila as saying the car grant to MCAs is not a favor but a requirement for State officers to enhance their grassroots activities. It went on, adding that the work of the Controller of Budget is not to determine budget lines but to oversee the implementation of the National and County Government budgets.

Raila team says statement on MCAs' car grant is fake

Uhuru's car grants gift to MCAs face hurdles

THE STANDARD KENYA President Uhuru Kenyatta [File, Standard] Members of County Assemblies (MCAs) may have to wait a little longer to benefit from President Uhuru Kenyatta’s Sh4.5 billion car grant pledge. Just days after the Salaries and Remuneration Commission (SRC) chair Lynn Mengich gave the green light to governors to effect the conversion of the car loan into car grants in line with President Kenyatta’s pledge to MCAs, the Controller of Budget (CoB) is raising fundamental concerns that could slow implementation. In a letter to SRC Chief Executive Officer Ann Gitau, the Controller of Budget Margaret Nyakango has cautioned that most counties budgeted for a car loan facility and not a grant.