This archive report was first published on 26 June 2020.
On June 19, 2020, the Kenya Revenue Authority (KRA) released a letter to the Kenya Private Sector Alliance, stating that Sh21.4 billion had been paid in Value Added Tax (VAT) refund claims as of June 12.
Additionally, KRA had appropriated Sh3.6 billion for payment by the end of June, bringing the total payment in the current financial year to Sh25 billion.
President Uhuru Kenyatta had ordered the release of the funds in three weeks in March, but more than two months later, businesses were yet to receive them.
"Additionally, KRA has sought an enhancement of monthly VAT refunds allocation from the current Sh1.2 billion to Sh3 billion from the National Treasury to help cope with the increasing number and value of claims," said Ms. Wandera in the letter.
Carole Karuga, chief executive at Kepsa, praised the KRA move to pay the refunds, saying it would offer financial relief to businesses hit worst by the Covid-19 pandemic.
"We are happy that KRA is paying pending VAT refunds. It is something we have been pushing for and we are happy that the money is finally out," she said.
