This archive report was first published on 12 December 2019.
President Uhuru Orders Reduction of Tax Burden on MSMEs ¶
On Jamhuri Day, President Uhuru Kenyatta directed the Kenya Revenue Authority and the National Treasury to overhaul Kenya's tax regime, aiming to reduce the burden on Micro, Small and Medium Enterprises (MSMEs). The directive was made during a ceremony at Nyayo National Stadium, attended by Prime Minister Mia Amor Mottley of Barbados.
President Kenyatta emphasized the need to reduce the tax burden on SMEs, stating that Kenya's economic growth figures have been impressive but the tax burden on SMEs has to be reduced so that a bigger margin of Kenyans can reap the benefits.
He directed the National Treasury and the Kenya Revenue Authority to review tax structures, especially in relation to small businesses, to reduce the tax burden while fostering tax-compliance. The President also directed that all employer contributions/deductions of NSSF, NHIF, PAYE and NITA be made through a unified payroll return submitted to the Kenya Revenue Authority.
President Kenyatta further directed the Attorney General to fast-track the submission to cabinet for approval and transmittal to parliament, the law on conflict of interest. He emphasized the need to ensure that institutions outlive individuals, stating that a nation is only as strong as its institutions.
Deputy President William Ruto and Prime Minister Mottley of Barbados also addressed the celebration at Nyayo National Stadium.
