Objectives:
This Act of Parliament provides guidelines for the imposition of value added tax on goods being made or imported to Kenya. Kenya’s Value Added Tax Act No. 35 of 2013 is an Act of Parliament that reviews and updates the law relating to value added tax, providing for the imposition of VAT on supplies made in or imported into Kenya. The Act imposes a tax known as value added tax on goods delivered in or imported into Kenya, and on certain services supplied in Kenya. The legislation has been amended multiple times through various Finance Acts to keep pace with evolving economic conditions and digital marketplace developments.
Restitution Measures:
None.
When a cultural belonging is repatriated to Kenya, the Kenyan government (via the National Museums of Kenya) is the importer of record. Under the standard application of the VAT Act, this import is subject to VAT, calculated on the customs value of the object (which for high-value artifacts can be substantial). The roadblock effect is that this means the very institution (the state) seeking the return of its national heritage must pay a significant tax to itself to complete the restitution.
Framework Limitations:
Placing a monetary “value” on priceless cultural heritage for tax purposes is often ethically, culturally, and practically problematic. Without a standing policy or protocol, each restitution case faces the additional burden of securing a one-off tax exemption, slowing down the process and creating uncertainty.
