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Kenya: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 11 May 2020

Fiscal policy

Several tax measures have been decided by the Kenyan government in order to cushion the affected individuals and businesses from the negative impact of the COVID-19 outbreak:

  • 100% tax relief for low income earners (namely, persons earning gross monthly income of up to KES 24,000 [USD226]);
  • A payment of additional income for a person earning a monthly income of KES 24,000
  • Decrease of the top Pay-As-You-Earn (PAYE) rate from 30% to 25%;
  • Decrease of the value-added tax rate from 16% to 14% with effect from 1 April 2020
  • Decrease of the resident corporate income tax from 30% to 25%.

These measures will come into force once approved by the National Assembly.

Business Income Tax

The Government has proposed a reduction of the top “pay as your earn” (PAYE) rate from 30% to 25%.

Additional Information

Additional information regarding employment-related measures, economic stimulus measures and other meausers.