Kenyan workers’ April salaries are likely to be delayed as employers juggle with the options of complying with President Uhuru Kenyatta’s proposed changes to the pay-as-you-earn (PAYE) regulations which were before Parliament this week.
Parliament on Wednesday passed the Tax Laws (Amendment) Bill 2020, which will see those earning below Sh24,000 exempted from tax as part of efforts to cushion workers from the knocks of the Covid-19 pandemic and the resultant restrictions on movement and economic activities. The Bill will only become law once it is signed by the President.
During the debate, MPs inserted new clauses while rejecting others — raising the possibility of further delays in assenting to the omnibus Bill should the President opt to disagree with the raft of changes introduced by the legislators.
The National Assembly granted the President his wish of reducing income tax, but also rejected some revenue-raising proposals such as tax on food and agricultural inputs.
