American Chamber of Commerce – Kenya urges MPs to reduce motor vehicle tax

The American Chamber of Commerce – Kenya (AmCham) wants Parliament to cut the proposed motor vehicle tax from 2.5 per cent to one per cent of the value of the vehicle.

AmCham also wants the National Assembly’s Committee on Finance and National Planning to exempt agricultural and commercial vehicles from the motor vehicle tax.

The chamber’s officials appeared before the committee to present views on the proposed tax measures in the Finance Bill, 2024. The Bill proposes to introduce a motor vehicle tax at the rate of 2.5 per cent on the value of the motor vehicle payable at the time of issuance of the insurance cover.

The motor vehicle tax is payable at the time of issuance of an insurance cover and shall be based on the value of the motor vehicle at a rate of 2.5 per cent.

The Finance Bill proposes a minimum of Sh5,000 and a maximum of Sh100,000 per annum. The Treasury targets to collect Sh58 billion from the motor vehicle tax in the financial year starting July 1.

The tax is to be collected by the insurer and remitted to the Kenya Revenue Authority Commissioner-General within five working days after issuance of an insurance cover, failure to which the insurer will be liable to a late payment penalty equivalent to 50 per cent of the uncollected tax.

The Bill exempts ambulances and vehicles owned by the county and national governments, the Kenya Defence Forces, the Kenya Police Service, the National Intelligence Service, or persons exempt from tax by the Privileges and Immunities Act.

AmCham asked MPs to consider scrapping the caps on the minimum and maximum amount payable by those owning motor vehicles. “We propose a compromise that motor vehicle tax be reduced to one per cent based on the third party insurance valuation,” said Mr Maxwell Okello, the AmCham chief executive officer.

“We know that the intention of this proposal is to raise revenue for the government. We propose a compromise between the citizenry and KRA. Insurance is at least 4.5 per cent of the car value for comprehensive insurance. Adding another 2.5 per cent tax will be costly to car owners.”

AmCham told the committee chaired by Molo MP Kuria Kimani that if the 2.5 per cent motor vehicle tax is to be introduced, it should be done progressively starting with one per cent. AmCham said subjecting commercial and agricultural vehicles to the motor vehicle tax will increase the operating costs of manufacturers and their suppliers.

“The proposed rate of 2.5 per cent whilst borne in addition to the other taxes, fees, and levies applicable on the purchase, general use and maintenance of motor vehicles proves extremely punitive to taxpayers.”

AmCham proposed an expansion of the proposed list of motor vehicles exempt from the proposed tax to include commercial and agricultural motor vehicles, as well as a revision of the applicable rate from 2.5 per cent to one per cent to create a compromise between the government’s aims of increasing tax revenue and the taxpayers’ concerns about the increasingly unbearable cost of living. Mr Kimani said one of the things the committee is grappling with is whether the motor vehicle tax sits in the right Act.

AM Live

AM Live is NTV's morning current affairs show that sets the agenda for the day with insightful panels every weekday.


Business Redefined

Business Redefined is Kenya’s premier thought leadership platform for unpacking matters regarding economic and finance policy as well demystifying complex developments in the region’s capital markets.


A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Full Episodes

A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Gumzo La Sato

Gumzo La Sato is a live social issues show that aims to create awareness about issues affecting the larger society. The discussions range from Parenting, Marital bliss and struggles, Oppression, violence, and all matters of the Heart.

Health Diary

Health Diary is a weekly show that highlights different types of diseases/conditions and seeks ways to prevent, treat/manage them. The show debunks this through real life stories and also feature specialists in different fields, to offer medical advice on the same.

Letter To My Younger Self

Letter To My Younger Self is a podcast where guests get to write a letter to their younger self, from which Maxine formulates questions to ask them during the hour-long show.

Mazao Talks

Mazao looks at agriculture and agribusiness

Nation Reports

Nation Reports is a weekly podcast offers an opportunity for listeners to interact with various reporters and journey with them as they unravel the biggest most emotive stories.

One Health Lens Podcast

Discussing health matters and human stories from Kenya and across Africa. We talk big picture from people to policy, ecosystems, and everything in between. Follow us on LinkedIn:

Paradise Lost

Paradise Lost peeks through the story of Louis Otieno, the times, and everything in between.



Speaking of GEN Z

Speaking of Gen Z brings you entertaining but meaningful conversations about a generation that is trying to navigate through adulthood. Join hosts Michelle, Jackie and Esther as they unravel all things Gen Z.

Sport On

Sport-On is a 30-minute sports magazine show on NTV and 3 hours on NATION FM. The show seeks to give the sports “fanatics” and “funatics” comprehensive and in-depth coverage of sports both locally and internationally.


The extent of technological growth is beyond mere acknowledgment; it has seamlessly integrated into our daily existence. A few years ago, the notion of paying electricity bills through mobile money or recharging with 'tokens' in Kenya seemed inconceivable. Online product sales were considered distant, and artificial intelligence is rapidly reshaping various facets of our lives. Amidst these technological leaps, those with a solid understanding of tech can navigate challenges, seize opportunities, and build a sustainable livelihood. Tech over Show aims to be the platform facilitating discussions among thought leaders, innovators, tech companies, and the government, addressing challenges and opportunities in Kenya's thriving tech industry.


Thamani is a business show which is dedicated to emerging issues regarding micro, small and medium size businesses.

The Politalk podcast

This is The Politalk podcast. Here we look into the ins and outs of everything Kenyan politics. We pull no punches and have no reason to sugarcoat anything that matters to Kenyans.

The Trend

A two-hour-long live show that airs on Fridays. The show focuses on what is current in the entertainment industry, controversial and popular across all media platforms targeting those aged between 25 and 35 years.

The trend podcast

The trend podcast highlights and captures the best of banter from #TTTT segment that airs every Friday on NTV. It's the TTTT EXTRA

The Wicked Edition

The Wicked Edition with Dr. King’ori seeks to address serious issues through humour and relatable wit. It is a two-part half hour show filmed in front of a live audience


A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula


Twende is a travel show that highlights beautiful, unique, diverse locations, people, and cultures. The show offers fresh perspectives on familiar locations and memorable experiences in new ones.


This Saturday evening lifestyle show lets viewers share their stories and life experiences as openly & honestly for the purpose of shifting the culture of silence.

VIP Access

VIP ACCESS is Anyiko Owoko’s YouTube and podcast show on Music and Culture dedicated to promoting Africa’s most promising talent and creatives. This podcast grants you VIP access into timeless interviews while providing a platform for rising as well as established artists across the continent. Since launching in 2018, Anyiko has interviewed over 70 African music stars.


This weekly news show aims to have all sides of debate but not be constrained by it, listen to main voices in the contest but not allow them to hold the viewers hostage, entertain debate but allow push back with all due respect.

When death do us part

In this podcast, three widowers openly speak about the process of grief, how they found themselves exposed to the emotional turmoil of losing their wives, and how society still does not know how to deal with them.

Your World

Your World is a health, wellness and variety show. It provides a platform for audiences and experts to share their experiences on how to improve or manage health issues, across Kenya and the Africa region.