This archive report was first published on 11 June 2020.
Kenya's tax relief measures, introduced in March this year to cushion citizens against the COVID-19 pandemic, may remain in place indefinitely if legislators reject a proposal from the National Treasury to review some of the tax breaks.
President Uhuru Kenyatta announced various tax relief measures, including a lower VAT of 14% and reduced income tax and corporation tax of up to 25%, to support Kenyans during the pandemic.
However, National Treasury Cabinet Secretary Ukur Yatani has proposed reviewing the tax breaks, citing concerns that some benefits are not being trickled down to consumers.
Yatani has also proposed allocating Ksh10 billion for the employment of 200,000 youths under the Kazi Mtaani programme in major towns across the country.
Other beneficiaries of the government's budget include parents and guardians, who will see their children's examination fees waived, and local enterprises, which will benefit from the 'Buy Kenya Build Kenya' Initiative.
Additionally, inputs for the manufacture of baby diapers, mobile phones, and the textile and apparel sector will be duty-free under the East African Community Duty Remission Scheme.
Maize or corn seeds have also been exempted from VAT to make them more affordable for farmers.
Furthermore, the government has committed to clearing all pension payment backlog by December this year.
Lastly, a voluntary disclosure programme has been introduced to allow Kenyans to voluntarily disclose any omissions in their tax returns and pay the tax due.
