Poor Kenya will have to dig deeper into their pockets to cater for food and other needs as treasury CS Ukur Yattani reintroduces full scale pre- covid taxes
Under the president’s directive in April 2020,the ministry of finance and planning lowered corporate and individual income tax rates as part of governments effort to cushion kenyas from adverse effects of covid-19
Due to this move, the government will as of 31st Dec 2020, forgone tax revenues of 65billion which will affect the implementation of the big 4 agenda and economic recovery in general
It has therefore seen it necessary to return to the pre-covid tax rates, This will take effect on 1st Jan 2020
However, the government will continue cushioning low- income earners by retaining 100% tax exemption for those earning 24,000 and below.