Coronavirus Effect (Kenya): VAT, PAYE Reduced as Key Government Officials Get Pay Cuts to Increase Disposable Income in Kenya
The President and his Deputy to get an 80% Pay Cut
Value Added Tax in Kenya reduced from 16% to 14%.
PAYE, on the other hand, has been reduced from a maximum of 30% to 25%.
Cabinet Secretaries and Permanent Secretaries to get pay cuts to increase disposable income in Kenya following the Coronavirus pandemic.
President Uhuru Kenyatta has reduced Kenya’s Value Added Tax from 16% to 14%. The president also reduced Pay As You Earn, PAYE from a maximum of 30% to 25%.
This move aims at increasing disposable income.
The President and Deputy President will also have an eighty percent salary cut.
Cabinet Secretaries will also have a 30% pay cut to increase disposable income.
Permanent Secretaries, on the other hand, will get a 20% pay cut to support the economy.
Kenyans earning Below Kshs 24, 000, will enjoy 100% tax relief following the Covid 19 outbreak in Kenya.
President Uhuru Kenyatta has also announced to the public today on Wednesday, March 25, 2020, of an impending curfew effective Friday, March 27, 2020.
The curfew will help to limit unnecessary movements from one point to another hence reduce the chances of Coronavirus spreading in Kenya.
The curfew will limit the movements of Kenyans between 7.00 P.M. and 5.00 A.M. beginning Friday, March 27, 2020.
The president has also confirmed three more coronavirus positive cases in the country.
This brings the total number of coronavirus positive cases to 28 up from the initial 25.