This archive report was first published on 11 June 2020.
On June 11, 2020, Treasury Secretary Ukur Yatani presented Kenya's Sh2.7 trillion budget for the year starting July 1, outlining the country's spending plans and taxation measures to finance the proposals.
The budget aims to jumpstart an economy ravaged by the Covid-19 pandemic, with a stimulus package included to support economic recovery.
Some key highlights of the budget include:
- Ministries, departments, and agencies have been directed to clear all pending bills, with funding to be withheld if this is not done.
- The government has waived examination fees for KCSE and KCPE candidates.
- A one percent minimum tax has been imposed on revenues for all companies, targeting firms that repeatedly declare losses to avoid taxes.
- Tax cheats have been given three years to declare correct taxes and enjoy a waiver on penalties.
- Online transactions will now attract a 1.5 percent digital tax as the government seeks to tap into the growing e-commerce sector.
- Despite the impact of the Covid-19 pandemic, Treasury Secretary Yatani assured that Kenya's debt remains sustainable.
