This archive report was first published on 13 December 2019.
President Kenyatta Orders Reduction Of Tax Burden On MSMEs ¶
On Jamhuri Day, December 12, 2019, President Uhuru Kenyatta directed the Kenya Revenue Authority and the National Treasury to immediately overhaul Kenya's tax regime with a view of reducing the burden on Micro, Small and Medium Enterprises (MSMEs).
Speaking at Nyayo National Stadium, President Kenyatta emphasized the need to reduce the tax burden on SMEs so that a bigger margin of Kenyans can reap the benefits of the country's economic growth.
"My Administration is focused on unlocking bottlenecks that are holding back the potential of Kenyan enterprises; particularly with regard to taxes and tax administration, reduction or where possible elimination of fees or charges levied by Government Agencies as well as the Private Sector," the President said.
He further directed that the National Treasury and the Kenya Revenue Authority review tax structures, especially in relation to small businesses, to reduce the tax burden while fostering tax-compliance.
President Kenyatta 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, as a way of reducing the compliance burden on employers.
He also announced plans to introduce other products such as Stawisha SME Mashinani and take other administrative measures geared towards enabling SMEs to play their rightful role in national economic transformation agenda.
Additionally, the President directed the national treasury and the judiciary to come up with mechanisms to ensure that commercial disputes below the value of Shs 1million are exempted from court fees.
President Kenyatta reiterated the government's commitment to making Kenya more attractive for direct foreign investment and sustaining the regulatory reforms that have seen the country improve in the World Bank ease of doing business ranking.
He also emphasized the need to continue the war on corruption until the corrupt are weeded out from the system, noting that conflict of interest is a major impediment to public service.
"In the same way, judges and magistrates cease completely any legal practice while in office, similarly doctors, engineers, accountants and other professionals who take up state or public office, should give up private practice and devote their full time, energies and focus on public duties'" said the President.
He directed the Attorney General to fast-track the submission to cabinet for approval and transmittal to parliament, the law on conflict of interest.
President Kenyatta acknowledged the role played by public servants in making Kenya realise its potential and emphasized the need to ensure that institutions outlive individuals.
"A nation is only as strong as its institutions. Personalities come and go, but institutions endure and outlast us all. It is therefore my intention to ensure that we fully institutionalize our governance and administrative principles and values as laid out in our constitution and other laws," the President said.
