Kenya’s parliament passes amendments to cushion Kenyans against COVID-19

In a late-night session yesterday, the National Assembly of Kenya made significant amendments to support the government's initiatives in alleviating the economic impact of the COVID-19 pandemic on its citizens. Journalist Joseph Bonio shed light on the key changes and their implications. The marathon session, which lasted until approximately 10:30 pm local time, focused on various proposals aimed at shielding Kenyans from the harsh effects of the ongoing health crisis. Among the pivotal tax adjustments approved was a revision to income tax regulations, where employees earning below 24,000 shillings will now be exempt from Pay-As-You-Earn deductions. Additionally, those earning above this threshold will only be subject to a maximum tax rate of 25%. The amendment also included a reduction in the turnover tax for small businesses from 3% to 1%, a move designed to provide relief to the struggling sector. Furthermore, the lawmakers addressed corporation tax, reducing it from 30% to 25% to support larger enterprises during these challenging times. The National Assembly also deliberated on Value Added Tax (VAT) proposals put forth by the National Treasury, ultimately opting to exempt several essential goods from the VAT bracket. Notably, agricultural products and inputs were included in this exemption list to bolster food security, a critical aspect in the fight against COVID-19. In addition to the tax amendments, the Assembly initiated discussions on a supplementary budget – the second of its kind for the 2019-2020 financial year. This budget reallocated government funds, prioritizing expenditure towards combatting the pandemic. Measures such as increased spending on water provision, support for small businesses, settlement of pending bills, and tax refunds were emphasized to sustain businesses and individuals in the face of economic hardships. Moreover, the ongoing locust invasion and recent floods in various parts of the country were not overlooked. The supplementary budget allocated funds to address these issues, underscoring the comprehensive approach taken by the government to tackle multiple challenges simultaneously. By acknowledging the interconnectivity of food security, disaster response, and economic stability, Kenya aims to mitigate the adverse impacts of these crises on its population. Nevertheless, despite the positive strides made in the amendments and budget adjustments, concerns about accountability and transparency in fund utilization remain prevalent among Kenyans. With an estimated expenditure of 40 billion shillings for the COVID-19 response alone, citizens are calling for robust mechanisms to ensure proper allocation and utilization of resources. The history of inefficiencies and mismanagement in government spending has fueled skepticism, prompting the populace to demand stringent accountability measures to track the flow of allocated funds. As the nation grapples with the intertwined challenges of a global health crisis, environmental disasters, and economic strains, the government's responsiveness and effectiveness in executing these proposed measures will determine the extent of relief provided to its citizens. Striking a balance between swift action and prudent financial stewardship is essential to instill confidence and resilience in Kenya's fight against the multifaceted crises it currently faces.