Parliament Paves Way For 100% Tax Waiver For Employees Earning Less Than Ksh 24,000

Kenyans who earn 24,000 shillings per month and below now have every reason to smile after the National Assembly approved the 100 percent tax waiver (PAYE) as proposed by President Uhuru Kenyatta.

In an effort to cushion Kenyans against the pressures of Covid-19, President Uhuru Kenyatta proposed a 100 percent PAYE waiver for Kenyans earning 24,000 shillings and below. For those earning above 24,000, the PAYE was reduced from 30 percent to 25 percent.

The House has this evening approved the Tax Laws (amendment) Bill,2020, paving the way for 100% tax relief to employees earning less than Ksh 24,000, while those earning above that amountwill pay a maximum of 25% down from 30%.The House has also approved the Supp.budget.

— National Assembly KE (@NAssemblyKE) April 22, 2020

On Wednesday, Kenyans had taken to social media platforms asking the Kenya Revenue Authority (KRA) on whether the waiver was to be applicable at the end of the month. KRA insisted that it was to be only applicable upon approval of the National Assembly.

The government also says that it has disbursed a total of 13 billion shillings to help SMEs as well as to help in clearing the pending bills for those owed by various government institutions. It is not yet clear whether the cash has started going to the targeted beneficiaries.

At the same time, the government also reduced Value Added Tax (VAT) from 16 percent to 14 percent, as well as releasing a total of 8.5 billion shillings for the elderly and the vulnerable in the society.