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
Taxpayers are reminded to determine correctly
their tax liability and remit the same in a timely