In line with the Presidential directive to mitigate the effects of COVID – 19 to the Kenyan economy through;

• 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%
• 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.

Kenya Revenue Authority (KRA) assures taxpayers and the general public that it will continue supporting both individuals and businesses to access our services and hence facilitate timely payment of taxes.

Whereas all efforts will be made to facilitate payment of taxes, KRA will decisively handle any matter that pertains to deliberate non-payment of taxes. In the event that a taxpayer is not able to honour the agreed payment plan, it is mandatory that the same is reviewed and agreed with our debt team.

 While KRA notes that taxpayers are required to provide proof of transaction in response to VAT inconsistency reports (taxpayers are supposed to submit documents and in some instances appear in person at our premises), we appreciate this is not tenable in the current environment.

To mitigate this, KRA has deferred the physical submission of documents and appearance before our teams. Taxpayers will be duly notified of when they can appear in person. In the interim, taxpayers are advised to submit evidence of transactions through callcentre@kra.go.ke. Taxpayers are also encouraged to access our tax services on our online platforms.

As the country faces this global health challenge, all citizens are called upon to play their constitutional role and pay all taxes due and support the Government in provision of critical services. Taxpayers are reminded to determine correctly their tax liability and remit the same in a timely manner.

Commissioner General, Kenya Revenue Authority