Home NEWS Businesses begin Implementing 14% V.A.T Following Directive

    Businesses begin Implementing 14% V.A.T Following Directive

    Businesses have begun implementing 14% V.A.T on all goods and services in Kenya following a directive from the government last week.  

    In an effort to combat the effects of the COVID-19 in Kenya, President Kenyatta announced measures to protect Kenyans from the effects of the Corona Virus. Among the measures announced were a reduction V.A.T from 16% to 14 %. Other measures were 100% tax relief for Kenyans earning up to Ksh. 24,000.00, reduction of PAYE from 30% to 25%, reduction of turnover tax for micro, small and medium size businesses from 3% to 1% and reduction of resident income tax to 25%.

    Other measures include making available Ksh.10 billion shillings for vulnerable groups such as the orphans and the elderly.

    Following this directive, businesses have begun reducing V.A.T to 14%. A spot check by ShopaXo, showed that effective 1st April 2020, V.A.T had dropped to 14%.

    Stop Panic Buying

    Meanwhile, while addressing business, Trade Cabinet Secretary Peter Munya asked Kenyans to stop panic buying, as this was the cause of traders increasing the price of basic commodities. This follows a partial lockdown announced by the President from 7.00pm to 5.00pm.

    At the same time, the government has engaged local manufactures such as Rivetex to mass-produce facemasks, 10000 cases projected from by the end of the first week in April, coupled with a shortage of facemasks and other essentials to combat COVID-19. The company, according to its managing director Prof Thomas Kurgat, is able to produce 1200 masks per day.

    These and other measures come at a time the number of COVID-19 cases in the country rose from 50 to 59 on 31st March 2020 with more cases being reported in Nairobi and in Kitui.

    Barely two weeks into the Corona Virus pandemic businesses and thousands of Kenyans are staring at an economic shutdown.


    Judith Atieno
    Judith Atieno
    Judith Atieno is an intelligence researcher who enjoys helping old ladies across the road, painting and meditation. She is Kind and Outgoing, but can also be very pessimistic and a bit impatient. She has a degree in journalism, though that is not what she does. However, she won't mind writing articles that keep readers on the edge.

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