Kenya Revenue Authority (KRA) efforts to mobilize domestic revenue collection has moved to the digital and informal sector.
Early Thursday, President Uhuru Kenyatta assented the Finance Bill 2019 kicking off the taxation of digital transactions.
The informal sector has also been brought into the tax bracket through the reintroduction of the turnover tax. The levy will be charged at 3 percent of a firm’s revenues.
On top of that, the taxman will charge a 5% withholding tax on low-income earners such as security guards, drivers, and cleaners.