This was to protect jobs for the people and to provide certainty for all employers as well as their employees.
In line with this, all individuals earning a monthly salary of Ksh 24,000 and below would receive a total waiver in taxes.
President Uhuru Kenyatta addressing officials during a ceremony at State House, Nairobi on March 18, 2020.
PSCU
“A 100 per cent tax waiver for those earning a gross monthly income of up to Ksh 24,000,” stated the President.
He additionally reduced pay as you earn tax from the standard 30% to 25%.
“There will be a reduction of PAYE from 30% to 25%,” he stated.
Corporations would also benefit from the tax waiver and would be saved from 5% on their corporation tax.
“We issue a reduction of resident income tax or corporation tax fro 30% to 25%,” the President confirmed.
Small scale traders who had been required to submit their turnover tax every month also received a reprieve after its the reduction by 2%
“We offer a reduction of the turnover tax rate from the current 3% to 1% for all micro, small and medium enterprises,” stated Uhuru.
The government also acknowledged that there was a need to protect the more vulnerable groups in the society and would in line with that give cash payouts to these groups.
President Uhuru Kenyatta issues an address at State House, Nairobi on January 14, 2020.
PSCU
” My administration directs the appropriation of 10 billion in cash payouts to be given to vulnerable groups such as the elderly and orphaned children to cushion them from the adverse negative effects of Covid-19,” affirmed the President.
Those at risk of being listed by the Credit Reference Bureau would also get space to breathe after the president ordered the suspension of listing.
“We direct the temporary suspension of listing on CRB of any persons, micro, small, medium entities and corporate entities whose loan account fall due or is in arrears effective, April 1, 2020,” finalised the President.
Watch the video of the press briefing below:
