NAIROBI, Kenya Dec 23—President Uhuru Kenyatta on Wednesday signed into law the Tax Laws (Amendment) Bill 2020 which was passed by Members of the National Assembly.
The law reverses tax cushions granted to Kenyans since March when the COVID-19 pandemic hit the country, in what will put a new economic strain on Kenyans following the collapse of most businesses.
The laws on Pay as You Earn (P.A.Y.E) and Corporate Tax seeks to increase them from 25 percent to the normal 30 percent and Value Added Tax (VAT) to 16 from 14 percent.
The tax exemptions had been issued by President Kenyatta to cushion Kenyans against the economic meltdown occasioned by COVID-19 pandemic.
According to Treasury Cabinet Secretary Ukur Yattani, the government will continue cushioning low-income earners by retaining the 100 per cent tax exemption relief for those earning a monthly income of Sh24,000 and below.
Also signed into law Wednesday is the Tea Bill of 2018 which contains several reforms among them the re-engineering of the Tea Board of Kenya to oversee the development, promotion and regulation of Kenya’s tea sector.
The bills were presented to the President for signature by Solicitor General Ken Ogeto at the brief ceremony attended by Agriculture CS Peter Munya, Senate Speaker Ken Lusaka and Leader of Majority in the National Assembly Amos Kimunya.
Also present were Head of Public Service Dr Joseph Kinyua, State House Deputy Chief of Staff Njee Muturi, Clerk of the National Assembly Michael Sialai and his Senate counterpart Jeremiah Nyengenye.
