The Kenyan Government has instituted measures meant to offer relief to SMEs, Corporations, and households due to the economic impact of COVID19. Addressing the nation on Wednesday, President Uhuru Kenyatta confirmed three new cases bringing the total cases to 28 with 1 recovery so far. He further noted the concerns among Kenyans on job losses and loss of income. The measures include;
- 100 % Tax Relief for persons earning gross monthly income of up to Ksh. 24,000
- Reduction of Income Tax Rate (Pay-As-You-Earn) from 30% to 25%
- Reduction of Resident Income Tax (Corporation Tax) from 30% to 25%
- Reduction of the turnover tax rate from the current 3% to 1% for all Micro, Small and Medium Enterprises (MSMEs)
- Appropriation of an additional Ksh. 10 Billion to the elderly, orphans and other vulnerable members of our society through cash-transfers
- Temporary suspension of the listing with Credit Reference Bureaus (CRB) of any person, Micro, Small and Medium Enterprises (MSMES) and corporate entities whose loan account fall overdue or is in arrears, effective 1st April, 2020.
- The National Treasury shall cause immediate reduction of the VAT from 16% to 14%, effective 1st April,2020
- That all Ministries and Departments shall cause the payment of at least of Ksh. 13 Billion of the verified pending bills, within three weeks from the date hereof
- That the Kenya Revenue Authority shall expedite the payment of all verified VAT refund claims amounting to Ksh. 10 Billion within 3 weeks
- That Ksh 1.0 billion from the Universal Health Coverage kitty, be immediately appropriated strictly towards the recruitment of additional health workers to support in the management of the spread of COVID-19
. Further, there has been a voluntary reduction in the salaries of the members of the executive;
- The President & Deputy President – 80%
- Cabinet Secretaries – 30%
- Chief Administrative Secretaries – 30%
- Principal Secretaries – 20%
