Following the declaration of COVID -19 as a global pandemic and the intensification of measures intended to contain the spread of the infection, The President of the Republic of Kenya delivered a speech on 25 March 2020 outlining a number of measures aimed at cushioning Kenyans against the economic effects of COVID-19 pandemic.
Implementation of tax reliefs and other measures aimed at increasing disposable income to the people of Kenya, through:
i. 100 % Tax Relief for persons earning gross monthly income of up to Ksh. 24,000;
ii. Reduction of Income Tax Rate (Pay As – You – Earn) from 30% to 25%;
iii. Reduction of Resident Income Tax (Corporation Tax) from 30% to 25%;
iv. Reduction of the turnover tax rate from the current 3% to 1% for all Micro, Small and Medium Enterprises (MSMEs); and
v. Appropriation of an additional Ksh. 10 Billion to the elderly, orphans and other vulnerable members of our society through cash-transfers by the Ministry of Labour and Social Protection, to cushion them from the adverse economic effects of the COVID-19 pandemic.
