This archive report was first published on 11 June 2020.
On June 11, 2020, Treasury Secretary Ukur Yatani presented the Sh2.7 trillion Budget for the 2020/21 financial year, outlining the spending plans and taxation measures to finance the proposals.
The budget includes a stimulus package to jumpstart an economy ravaged by the Covid-19 pandemic.
Some of the 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 targets the growing e-commerce sector.
- Despite the impact of the Covid-19 pandemic, Treasury Secretary Ukur Yatani stated that the country's debt remains sustainable.
