Kenya: Tax measures and changes effective 1 January 2021

Kenya: Tax measures, changes effective 1 January 2021

Provisions of the Tax Laws (Amendment) (No. 2) Act, 2020 were effective 1 January 2021.


The legislation was introduced 27 November 2020, and then assented to on 23 December 2020 and published on 24 December 2020.

The Tax Laws (Amendment) (No .2) Act, 2020 reinstated tax relief concessions that were provided to mitigate the economic impact of the coronavirus (COVID-19) pandemic including reinstating:

  • The rate of corporation tax to 30%
  • The value added tax (VAT) rate to 16%
  • The top PAYE band to 30%

Read a January 2021 report prepared by the KPMG member firm in Kenya

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