Kenya tourism minister says no VAT on cruise ship services

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The Kenyan tourism minister announced last week that in the future, cruise ships on port call in Mombasa will not have to pay value added tax (VAT) on services received while in port, although it was not immediately clear if this announcement would require a change of legislation or a vote in parliament, or could be implemented through a simple directive from the Ministry of Finance.

When going to press, it was also still unconfirmed what exact services for cruise ships were to be VAT free and if those were restricted to handling charges in port or even for the delivery of food and drinks to replenish supplies.

The announcement appears to have been made at the launch of a Mombasa-based cruise liner, which will operated scheduled trips between Mombasa, Pemba, and Zanzibar.