President Uhuru Kenyatta directed the National Treasury to extend the business relief measures unveiled to cushion businesses and households from the economic downturn occasioned by the COVID19 pandemic.
Kenyatta maintained the economic stimulus packages unveiled during the first phase of the pandemic to support small businesses and innovators. He directed that the national treasury maintain the 14 per cent value-added tax, retaining the Income-tax rate (Pay-as-you-earn) at 25 percent and Corporation tax retained at 25 percent until 1st January 2021.
Kenyatta reiterated that the National treasury maintains the 100 percent tax relief for persons earning a gross monthly income of up to Ksh24,000 beyond the sunset date of 31 December 2020.
Furthermore, the president proposed maintenance of the reduction in turnover tax rate from 3 percent to 1 percent for all micro, small, and medium-sized enterprises.
In addition, the treasury will enhance access to credit guarantee scheme for MSMEs having set aside Ksh100 billion in a risk-sharing partnership with banks and development partners.