Kenya-COVID 19-Economy

Kenya announces tax cuts in wake of COVID 19 epidemic

APA-Nairobi(Kenya)

Kenya's President Uhuru Kenyatta on Wednesday announced tax cuts to stimulate the economy as well cushion Kenyans from negative economic effects caused by the devastating corona virus pandemic.

The President ordered that the Value Added Tax(VAT) be reduced from 16 percent to 14 percent as well as announced a 100 percent tax relief for persons earning gross monthly income of up to 24,000($225).

While addressing the nation from State House Nairobi, Kenyatta further ordered for the reduction of Income Tax Rate (Pay- As-You-Earn) from 30 percent to 25 percent.

He further ordered the reduction of the turnover tax rate from the current 3 percent to 1 percent for all Micro, Small and Medium Enterprises (MSMEs) and reduction of Resident Income Tax (Corporation Tax) from 30 percent to 25 percent.

The President announced 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.

He also ordered the appropriation of an additional 10 billion shillings ($94 million) to the elderly, orphans and other vulnerable members of our society through cash-transfers to cushion them from the adverse economic effects of the COVID-19 pandemic.

He further directed that 1 billion shillings ($9.4 million) 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.

He further announced that he together with his deputy, William Ruto will take a salary cut of up to 80 percent while Cabinet Secretaries a 30 percent cut.

Kenya has so far 28 COVID 19 cases with one patient registering full recovery.


JK/abj/APA

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