This archive report was first published on 8 July 2020.
On July 8, 2020, the Kenya Revenue Authority (KRA) announced a significant milestone in its efforts to support businesses affected by the Covid-19 pandemic. The authority has paid out Sh25 billion in value-added tax (VAT) refunds, a new record, as of last month.
This payment is a welcome relief to firms struggling with cash flows due to reduced demand for their products or services. The refunds, although less than half the Sh62.3 billion claims lodged, demonstrate KRA's commitment to supporting businesses during these challenging times.
According to KRA, as of June 25, 2020, the authority had a stock of VAT refund claims worth Sh24.3 billion. In the 2019/2020 financial year, claims worth Sh36.1 billion were processed, out of which Sh23.6 billion were paid out, and an additional Sh1.8 billion was earmarked for payment by the end of June 2020.
KRA Commissioner for Domestic Taxes Elizabeth Meyo noted that the amounts paid so far are a new record compared to the previous highest payment of Sh14.1 billion in the 2018-19 financial year.
