By Donald Kogai

In line with the Presidential directive to mitigate

the effects of COVID – 19 to the Kenyan

economy through; Reduction of Personal

Income Tax top rate (PAYE) from 30% to 25%

100 % Tax Relief for persons earning up to Ksh.

24,000 Reduction of Resident Corporate Income

Tax rate from 30% to 25%, Reduction of

Turnover Tax rate for SMEs from 3% to 1%

Immediate reduction of VAT rate from 16% to

14%, Lowering of Central Bank Rate (CBR) to

7.2% of Cash Reserve Ration (CRR) to 4.2%

Central Bank of Kenya to offer flexibility to

banks on loans that were active as of March

2020 to maintain liquidity levels

Facilitating expedited payment of VAT Refunds

by allocating an additional Ksh. 10B

Setting up a fund to which players in the Public

and Private Sector are contributing in support

of Government efforts.

Kenya Revenue Authority (KRA) assures

taxpayers and the general public that it will

continue supporting both individuals and

businesses to access our services and hence

facilitate timely payment of taxes.

Whereas all efforts will be made to facilitate

payment of taxes, KRA will decisively handle

any matter that pertains to deliberate non-

payment of taxes.

In the event that a taxpayer is not able to

honour the agreed payment plan, it is

mandatory that the same is reviewed and

agreed with our debt team.

While KRA notes that taxpayers are required to

provide proof of transaction in response to VAT

inconsistency reports (taxpayers are supposed

to submit documents and in some instances

appear in person at our premises), we

appreciate this is not tenable in the current


To mitigate this, KRA has deferred the physical

submission of documents and appearance

before our teams.

Taxpayers will be duly notified of when they can

appear in person.

In the interim, taxpayers are advised to submit

evidence of transactions through

Taxpayers are also encouraged to access our

tax services on our online platforms.

As the country faces this global health

challenge, all citizens are called upon to play

their constitutional role and pay all taxes due

and support the Government in provision of

critical services.

Taxpayers are reminded to determine correctly

their tax liability and remit the same in a timely


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