President Uhuru Kenyatta’s administration on Wednesday unveiled a raft of new tax measures that it intends to introduce, to protect individuals, businesses and the old and well as other vulnerable groups from negative effects of coronavirus. He further noted the concerns among Kenyans on job losses and loss of income.
The measures include the removal income tax for persons earning a monthly income of up to KSh 24,000, reduction of income tax rates, corporate tax as well as turnover tax for small and medium-sized businesses.
President Kenyatta also ordered for temporary suspension of blacklisting small business and corporates in Credit Reference Bureuas. This measure takes effect on 1st April, 2020.
National Treasury has also lowered value-added tax(VAT) from the current 16 percent to 14 percent, effective 1st April, 2020.
All Ministries, Department and State Agencies have been directed to pay at least KSh 13 billion in verified pending bills.
Kenya Revenue Authority(KRA) is required to clear all verified VAT refund claims amounting to Ksh. 10 Billion within 3 weeks. Alternatively, the taxman can allow for offsetting of Withholding VAT, in order to improve cash flows for businesses.
Treasury has also been directed to release KSh 1 billion from Universal Health Coverage kitty, to be used for recruitment of additional health workers to support in the management of COVID-19.
Senior ranks in the National Executive arm of Government pledged to take voluntary pay cuts as follows. The President & Deputy President – 80 percent, Cabinet Secretaries – 30percent, Chief Administrative Secretaries – 30percent and Principal Secretaries – 20 percent.
A presidential decree also imposed a dusk to dawn curfew, beginning this Friday from 7 PM to 5AM
With assistance from Wandiri Gitogo,
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