President Uhuru Kenyatta and his Deputy William Ruto will take an 80{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} pay cut in a move aimed at cushioning Kenyans against the economic effects of coronavirus pandemic.
Addressing the nation, President Uhuru Kenyatta also announced that senior government officials , Chief Administrative secretaries and Principal Secretaries will take a 30{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} pay cut.
The president has further announced a 100{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} tax relief for those earning a gross of up to 24,000, A Reduction of Pay As You Earn PAYE from 30{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} to 20{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33}, a reduction of resident income tax/Corporation tax from 30 to 25{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33}, and a reduction of Turnover tax for SMEs to 1{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} from 3{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33}
“In order to protect jobs for our people and to provide some certainty for both employees and their employers, I, as your President, ORDER and DIRECT
“100 {d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} Tax Relief for persons earning gross monthly income of up to Ksh. 24,000.Reduction of Income Tax Rate (Pay-As-You-Earn) from 30{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} to 25{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33}, Reduction of Resident Income Tax (Corporation Tax) from 30{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} to 25{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33}”
” Reduction of the turnover tax rate from the current 3{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} to 1{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} for all Micro, Small and Medium Enterprises (MSMEs)”
“Reduction of Resident Income Tax (Corporation Tax) from 30{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} to 25{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33}; Appropriation of an additional Ksh. 10 Billion to the elderly, orphans and other vulnerable members of our society through cash-transfers by the Ministry of Labor and Social Protection, to cushion them from the adverse economic effects of the COVID-19 pandemic”
“The National Treasury shall cause immediate reduction of the VAT from 16{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} to 14{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33}, effective 1st April,2020”
” That all Ministries and Departments shall cause the payment of at least of Ksh. 13 Billion of the verified pending bills, within three weeks from the date hereof. Similarly, and to improve liquidity in the economy and ensure businesses remain afloat by enhancing their cash flows, the private sector is also encouraged to clear all outstanding payments among themselves; within three weeks from the date hereof.”
“That the Kenya Revenue Authority shall expedite the payment of all verified VAT refund claims amounting to Ksh. 10 Billion within 3 weeks; or in the alternative, allow for offsetting of Withholding VAT, in order to improve cash flows for businesses.”
” That Ksh. 1.0 billion from the Universal Health Coverage kitty, be immediately appropriated strictly towards the recruitment of additional health workers to support in the management of the spread of COVID-19.”
” In that regard, I further direct the Ministry of Health, the County Governments and the Public Service Commission to expedite the recruitment process.”
The president has further announced that effective this Friday there will be a daily curfew from 7pm to 5am within Kenya. At the Coast, the Kenya police to take over Likoni ferry operations as Kenya declares dusk to dawn curfew kicks off on Friday countrywide.
While announcing that three more cases of COVID 19 had been reported in Kenya, bringing the total number of cases to 28, the president said the recovery of one case among those in isolation was encouraging. He however urged Kenyans not to relax the directives issued by the Ministry of Health in keeping the spread of the deadly virus at bay.
” Amidst this trend, I am pleased to announce that numerous other suspected cases have been found to be negative after rigorous testing. More importantly, we have today registered one recovery of the patients. This is a clear indication that we can and we will beat the virus”, he stated.
” Many more persons, both Kenyans and Foreigners, remain under close monitoring under either self-quarantine or compulsory-quarantine; measures which we have taken to ensure the safety of all our People. I wish to assure you all that as a Government, at both the National and County Levels, we are implementing strict evaluation and monitoring protocol, designed to proactively seek out and test persons who may be carriers of this virus”, President Kenyatta added.