This archive report was first published on 1 July 2020.
On July 1, 2020, President Uhuru Kenyatta signed the Finance Bill 2020 into law, marking a significant step in addressing the economic impact of the COVID-19 pandemic.
The Finance Bill 2020 introduces several key measures, including the zero-rating of maize, cassava, and wheat flour for six months, which will help cushion Kenyans against the adverse effects of the pandemic. Additionally, the bill removes the excise duty on betting, allowing local betting firms to resume operations after a 10-month hiatus.
The new Finance Act also extends the zero-rating of VAT on cooking gas for one year. However, some of the amendments in the Finance bill have been criticized for widening the net of alcoholic beverages subject to excise duty, thereby increasing the price of these drinks.
The 2020/21 Budget, which is part of the Finance Bill 2020, contains a KSh 56.6 billion post-COVID-19 economic stimulus package and an allocation of KSh 128.3 billion to the Government's Big Four agenda. The third 2019/20 supplementary budget of KSh 18.4 billion was also approved by the National Assembly to address the Covid-19 health crisis and other emerging challenges.
