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Kenya Cuts National Taxes, Reopens Bars to Save Its Economy

The Public Lens by The Public Lens
October 1, 2020
in Business
Kenya Cuts National Taxes, Reopens Bars to Save Its Economy
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To save its economy, the Government of Kenya has made several key changes to measures against the Covid -19 pandemic.

The Spy; a local online media publication, has reported that President Uhuru Kenyatta made several key changes on Monday where he started by extending the nationwide curfew by 60 days but changed the timings to 11pm – 4 am effective Tuesday.

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He also lifted the ban on the sale of alcohol by bars and restaurants, much to the delight of members of the public who had long expressed their wish especially on social media. “The order takes effect Tuesday,“ he said, but noted that the establishments must be closed by 10 pm.

The President further raised the maximum number of guests at funerals and weddings from 100 to 200 and said churches can host up to a third of their capacities.

The Ministry of Health earlier relaxed burial protocols for people who died of Covid -19 in line with the revised World Health Organization (WHO) guidelines. Public health officials handling the bodies will no longer be required to wear full hazmat suits.

Regarding the schools reopening date, President Kenyatta did not announce a date but noted the need to ensure that proper safety precautions are taken.

As such, he said Education Cabinet Secretary George Magoha will announce the calendar once an agreement on safety measures is reached following discussion by all stakeholders.

“Learning Institutions should only be reopened when we have and can sufficiently guarantee the safety of all our children. Let us not focus on when schools will reopen but on how they will reopen,” he said.

It is now unclear when students will return to school even as some neighboring countries try to resume learning, based on their caseloads. Among them are Tanzania, Zambia and South Sudan plus Uganda that has since okayed only finalists.

As of Monday, Kenya had recorded 38,168 declared cases, including 24,691 recoveries and 700 deaths, according to a statement by Health Cabinet Secretary (CS) Mutahi Kagwe.

To cushion individuals and organizations from economic hardships, President Kenyatta asked the Treasury to consider retaining the VAT rate at 14% until July 1, 2021, and the PAYE rate at 25% and resident income (corporate) tax at 25% until January 1, 2021.

“To continue cushioning low –income earners, (I ask) the National Treasury (to) to maintain the 100% tax relief for persons earning a gross monthly income of up to Shs 24,000 beyond December 31, 2020,” he said.

The president further asked the ministry to maintain the reduction of the turnover tax from 3% to 1% for all SMEs.
President Kenyatta made the announcements following National Covid -19 Conferences that took place at the Kenyatta International Conference Centre (KICC) in Nairobi.

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