Uhuru signs Tea, Tax Bills into law

President Uhuru Kenyatta has assented to the Tea Bill of 2018 and the Tax Laws (Amendment) Bill 2020 at State House, Nairobi. 

The former is expected to bring relief to tea farmers in the country by ensuring they receive 50 per cent of their tea proceeds within 30 days of auction, while the latter alters measures enacted in April to cushion Kenyans against the effects of the Covid-19 pandemic on the economy.

With the the Tax Laws (Amendment) Bill 2020 now signed into law, the greatest pain is the return of value added tax (VAT) to the pre-coronavirus rate of 16 from 14 per cent as the government aims to collect at least Sh78 billion between January 1 and June 30, 2021.

It will also see the corporate tax rate revert to 30 from 25 per cent, with the same applying to individual income tax or Pay As You Earn (Paye).

The Bills were presented to the president for signature on Wednesday by Solicitor General Ken Ogeto at the brief ceremony attended by Agriculture CS Peter Munya, Senate Speaker Ken Lusaka and Leader of Majority in the National Assembly Amos Kimunya. 

Also present were Head of Public Service Dr Joseph Kinyua, State House Deputy Chief of Staff Njee Muturi, Clerk of the National Assembly Michael Sialai and his Senate counterpart Jeremiah Nyengenye.

Additional reporting by PSCU