COVID-19 Tax Measures 2020


In his speech on 25 March 2020, the Kenyan President announced several measures intended to provide relief to businesses, employees and other taxpayers at large in the wake of the Covid-19 pandemic. Below is our summary of those measures. Specific Proposed Tax Measures:

  • 100 per cent Tax Relief for persons earning gross monthly income of up to KShs 24,000;
  • Reduction of Income Tax Rate (Pay-As-You-Earn) from 30 per cent to 25 per cent;
  • Reduction of Resident Income Tax (Corporation Tax) from 30 per cent to 25 per cent;
  • Reduction of the turnover tax rate from the current 3 per cent to 1 per cent for all Micro, Small and Medium Enterprises (MSMEs);
  • Reduction of the VAT from 16 per cent to 14 per cent, effective 1st April,2020; and
  • Kenya Revenue Authority (KRA) directed to expedite the payment of all verified Value Added Tax (VAT) refund claims amounting to
    KShs 10 Billion within 3 weeks; or in the alternative, allow for offsetting of Withholding VAT, in order to improve cash flows for





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