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Deputy President William Ruto (in grey jacket) and elders during the bride price negotiation ceremony of his younger brother David Ruto in Ziwa, Uasin Gishu County in August 2019. KRA will not tax ceremonies. [File, Standard]
Fact-Check: Is KRA planning on taxing bride price?
A blog post on December 3, 2019, claimed the Kenya Revenue Authority (KRA) was contemplating a tax on dowry payments, setting off a buzz of reactions online.
In the story authored by James Kanyotu of updates.co.ke, it is reported that the board made it clear to him that it was consulting over the issue. “…the sooner they agree the earlier they’d make it formal,” the blog reported, saying the move was to raise KRA’s revenue collection.It said that the tax agency would periodically publish names of Kenyans paying dowry and those who had paid before would not be spared either.
“It was realised that millions of money and property escape tax through the payment of dowry. Individuals paid to the tune of five million alongside unquantifiable properties whereas none of it got taxed),” (sic) the blog synonymous with spurious news said.In the past, it took readers down the garden path that Kenyan Japan-based Kenyan international footballer Michael Olunga had been offered money to become a Japanese.Back to taxing dowry.
KRA has denied the claims as false.”This information circulating on social media is fake news and did not originate from us,” KRA marketing and communication office told Standard Digital.
Expressly, dowry is rarely paid in Kenya. According to the Merriam-Webster dictionary, dowry is defined as ‘the money, goods, or estate that a woman brings to her husband in marriage’. It is more oriental in the Indian subcontinent.Kenyans pay pride price which is the ‘payment given by or on behalf of a prospective husband to the bride’s family in many cultures’.This means women pay dowry; men pay the bride price.There are no set standards for dowry or bride price payment and often the price is fixed by tradition. Common practice includes payment with domestic animals such as cattle, goats, sheep, chicken or such items like honey, shukas, swords etc.What makes the difference is the price the community attributes to each of the items. It would be very difficult for KRA to put a tax figure on such payments.
Enforcement would also be a tricky affair since the negotiations are often done in informal systems and are not treated as a commercial payment per se but a token of appreciation between the families.The conversation is, however, not new to Kenya. Recently on November 28 during the 2nd Kenya School of Revenue Administration (KESRA) Research Conference at the Kenya School of Monetary Studies, the proposal was discussed.University of Nairobi Associate Professor in the School of Business Dr X.N Iraki told delegates that there was a need for research on whether dowry payment should be subjected to taxation.X.N Iraki who is a certified bride price negotiator in a past interview with Standard Digital called for academicians to focus on dowry negotiations as an area of study. “I once presented a paper on Dowry Pricing in East Africa in the USA. Sociologists, economists, anthropologists, and even accountants are welcome. There is some beauty in our traditions. Unfortunately, our youngsters are watching too many movies,” he said.
