KRA has made tax changes which are affected by the coronavirus. The changes were made after the Kenyan government proposed that certain items be exempted from tax.
To mitigate the effects of COVID – 19 to the Kenyan economy, the Government has proposed various measures including the following:
- Reduction of Personal Income Tax top rate (PAYE) from 30% to 25%
- 100 % Tax Relief for persons earning up to Ksh. 24,000
- Reduction of Resident Corporate Income Tax rate from 30% to 25%
- Reduction of Turnover Tax rate for SMEs from 3% to 1%
- Immediate reduction of VAT rate from 16% to 14%
Further to this, the Government has implemented the following measures:
- Suspension of all listing for all persons including companies at Credit Reference Bureau (CRB)
- Lowering of Central Bank Rate (CBR) to 7.2%
- Lowering of Cash Reserve Ration (CRR) to 4.2%
- Central Bank of Kenya to offer flexibility to banks on loans that were active as of March 2020 to maintain liquidity levels
- Facilitating expedited payment of VAT Refunds by allocating an additional Ksh. 10B
- Setting up a fund to which players in the Public and Private Sector are contributing in support of Government efforts
If you wish to get any clarification, call the numbers provided below or visit KRA website for more details. Here are the important contacts to help you:
- For Domestic Taxes and all frequently requested services, log on to https://itax.kra.go.ke/KRA-Portal/
- For Customs related taxes, log on to iCMS (Integrated Customs Management Systems) and the Simba System
- For Supply Chain Management (SCM) or e-procurement, log on to http://www.kra.go.ke/en/tender
- For additional support, call our Contact Centre on Tel: 020 4 999 999, 0711 099 999 or Email: [email protected]
