The Kenyan finance bill for 2024 proposes the repeal of tax exemptions for amateur sporting associations. This change, if enacted, will alter the financial landscape for many non-professional sports organizations across the country.

Current Tax Exemptions

Under the current system, amateur sporting associations enjoy tax exemptions on most of their income. The only exception is income derived from investments, which is subject to tax. This has allowed these organizations to focus their resources on promoting sports and organizing events without the additional burden of income tax.

Proposed Change

The new bill seeks to eliminate these exemptions. This means that all income earned by amateur sporting associations will be subject to income tax. This includes not only investment income but also funds generated from membership fees, event revenues, sponsorships, and donations.

Implications for Amateur Sporting Associations

The proposed change could have several implications:

1. Increased Financial Responsibility: Associations will need to allocate part of their funds to cover new tax liabilities.
2. Budgeting and Planning: Organizations may need to revise their budgets and financial plans to accommodate tax payments.
3. Impact on Activities: The increased financial burden could affect the affordability and availability of activities, events, and membership fees.
4. Sponsorship Deals: Sponsorships, a vital income source for many associations, will now be taxed, potentially affecting their attractiveness and viability.

Community Reactions

Many in the sports community are concerned about the impact of these changes. “This will definitely change how we operate,” said John Mwangi, the head of a local amateur football club.

“We rely heavily on sponsorships and membership fees to keep the club running. Having to pay taxes on these will force us to rethink our financial strategies.” He added.

The bill is currently moving through the legislative process amidst uproar from Kenyan citizens that has culminated in protests across the country.