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Kenya: Reversal of covid-19 tax measures & new taxes 2021

7 January 2021
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The new taxes kicking in 2021 and the reversal of the COVID-19 tax relief measures, discussed later in this alert, come hot on the heels of a challenging economic environment, dwindling revenue performance and high debt service obligations. Perhaps this explains the urgent need to optimally mobilize tax revenues and rationalize government expenditures. There is negligible evidence that fiscal consolidation efforts reportedly being pursued by the National Treasury have borne any fruits, as the current numbers paint a picture of a worsening financial scenario. We highlight briefly the state of the economy and revenue performance of the government, and subsequently, the new taxes and the reversal of the COVID-19 tax relief measures.