Kenya on Wednesday said it will cut the value-added tax rate to 14% from 16% as part of a series of measures to help cushion the economy from the impact of the coronavirus outbreak, President Uhuru Kenyatta said in a televised address.
East Africa’s richest economy has so far confirmed 28 cases of the COVID-19 disease and its critical tourism and farm export businesses have been feeling the pinch from the economic impact of the coronavirus outbreak.
Kenyatta said that there will be 100% tax relief for Kenyans earning a monthly income of up to 24,000 Kenyan Shillings ($226) to increase their disposable income.
“My administration has made and will continue to make targeted state interventions to cushion every Kenyan from the shocks arising from this coronavirus,” he said.
Kenyatta also said the government will institute a daily curfew beginning on March 27 from 7 p.m. to 5 a.m. to curtail the spread of the virus.
On Monday, the central bank said it expected the economy to expand by 3.4% this year, down from an initial estimate of 6.2%, as the virus saps demand from trading partners like Europe, as well as disrupting supply chains and domestic production.
($1 = 106.0000 Kenyan shillings)