This archive report was first published on 22 April 2020.
On April 22, 2020, Kenya Revenue Authority (KRA) dampened hopes for tax relief among struggling Kenyans during the coronavirus pandemic.
President Uhuru Kenyatta had proposed exempting workers earning Sh24,000 and below from taxation, as well as reducing the minimum income tax rate from 30 to 25 percent.
However, KRA clarified that these tax cuts would only take effect once the bill containing the proposal is passed into law.
‘Please note the PAYE rate is now a bill that is yet to be assented to. Use the old rates until such a time when Parliament will pass the bill into law,’ KRA tweeted in response to a query.
The proposed tax cuts also included reducing corporation tax to 25 percent and lowering the turnover tax for small and mid-sized businesses from three percent to one percent.
