Faith-based organisations grappling with new tax regulations found a platform for clarity at NCBA’s annual engagement luncheon, themed “Navigating Tax Reforms for Sustainability.”

The gathering brought together religious leaders, financial experts, and tax officials to dissect the complexities of the recently introduced Income Tax (Charitable Organisations and Donations Exemption) Rules, 2024.

The reforms, enacted through Legal Notice No. 105 of 2024, replaced the 2007 framework, reshaping how charitable institutions manage tax exemptions.

Under the new rules, donation deductions are capped at 50 per cent of total income, with tax exemptions granted only if business revenue is exclusively used for charitable work.

Institutions must now provide detailed documentation, including proof of donations and financial statements, while surplus funds are limited to 15 per cent of total income over three years.

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NCBA Group Director for Corporate Banking and Investment Advisory Tirus Mwithiga emphasised the bank’s role in supporting faith-based institutions beyond banking services.

“We recognize the vital role that faith-based institutions play in advancing social development, education, and humanitarian support. This is why we remain committed to nurturing long-term partnerships, not just as a financial service provider but as a partner in driving positive societal impact," Mwithiga stated.

"It is with this in mind that we hold annual forums like this, offering us the chance to engage with you, understand your challenges, and work together to co-create solutions. As a fully-fledged financial institution, it is our role to walk with our customers and offer advisory services to ensure the sustainability of their work."

Tax compliance remains a challenge for many institutions, with Margaret Karanja, the Kenya Revenue Authority’s (KRA) Chief Manager for Exemption, Policy, and Tax Advisory, pointing to poor documentation as a key stumbling block.

She urged organisations to align with the requirements before the June 2025 compliance deadline and highlighted KRA’s move to automate the tax exemption application process.

“While it's a delicate balance between enforcement & taxpayer willingness, the strong uptake of the new tax rules signals positive progress,” she noted.

Offering a faith-based perspective, Apostolic Nuncio to Kenya and Sudan, Most Reverend Herbert van Megen, referenced biblical teachings on taxation, stating, “Give to Ceasar what belongs to Ceasar. Paying taxes is not just a legal obligation but a moral responsibility. Saint John Paul II called paying taxes an act of solidarity, as it contributes to the crucial assistance of those most in need.”

He further urged policymakers to ensure that taxes serve the common good, fostering human development.

The forum featured expert discussions led by representatives from KRA, Grant Thornton, and the Kenya Conference of Catholic Bishops.


Key takeaways included the need for improved financial transparency, strategic compliance training, and closer collaboration between tax authorities and faith-based organisations.

NCBA reaffirmed its commitment to guiding these institutions through the evolving tax landscape, ensuring they remain compliant while continuing their philanthropic missions.

With the tax reforms already in motion and the compliance deadline drawing near, faith-based institutions now face the challenge of adapting to the new legal framework.

Through partnerships like this, NCBA aims to bridge the gap between policy and practice, ensuring that charitable organisations can sustain their impact in the communities they serve.