The President of Kenya, through a public address on 25th March 2020 announced several income tax and Value Added Tax (VAT) interventions that are aimed at cushioning Kenyans from the crippling effects of the COVID-19 pandemic. In line with the President’s directive, the Cabinet Secretary for National Treasury and Planning has through Legal Notice 35 of 2020 issued the Value Added Tax (amendment of the rate of tax) Order, 2020 which effected the proposal to reduce the VAT rate from 16% to 14%.
The income tax measures are contained in the Tax Laws Amendment Bill, 2020 (“the Bill”). DLA Piper Africa, IKM Advocates has prepared this tax alert highlighting the proposed tax amendments and providing insights on the implications of the proposals.
The Bill is expected to be tabled in the National Assembly for the second reading next week. We will update you on further developments.