Kenya: Coronavirus - Inside Lawyers' Plan to Save the Economy

The Law Society of Kenya (LSK) has proposed a raft of measures that it wants implemented by Treasury to mitigate against the effects of Covid-19 on the economy.

The World Health Organization (WHO) has categorised the severe acute respiratory syndrome Coronavirus 2 (Covid-19) as a pandemic and the Kenyan government has since announced bold measures to contain the spread in the country.

The measures LSK wants considered by government are intended to benefit business entities and individuals who have experienced the adverse effects of Covid-19.


LSK wants the State to provide incentives to manufacturers of essential supplies such as sanitisers, toiletries, masks, gloves, vitamins and specialised medical equipment, by temporarily lowering the applicable corporation tax at least for the current year of income.

It also want lower taxes on donations made to the Kenya Red Cross, County Governments or any other institution responsible for the management of national disasters.

The lawyers' umbrella body is equally concerned that low income Kenyans will be hit hardest by the economic turmoil caused by the effects of the pandemic.

"To cushion these employees from the negative economic impact of the pandemic, we propose a temporary waiver on Pay as You Earn (PAYE) on low income employees earning Sh23,885 and below per month until Covid-19 is brought under control," said outgoing LSK President Allen Gichuhi.

LSK also wants the mortgage relief increased from the current Sh300,000 per annum to Sh500,000 to provide relief to borrowers whose liquidity is likely to be affected during the current year of income.

In order to accommodate the potential challenges by taxpayers to make payments within the statutory time limits, LSK proposes a 90-day extension period for payment of the taxes.

"This is bearing in mind that April is the first quarter of the financial year for most taxpayers and the due date for the payment of the first instalment corporate tax and the balance of the corporate tax liability for the previous financial year," Mr Gichuhi.

With the suspension of travel for all persons coming into Kenya from any country that has reported Covid-19 cases and the ban of all conferences, meetings and public gatherings, it is imperative that hotels and restaurants will scale down their operations or close until the disease is brought under control.

LSK thus wants the government to grant tax rebates and waivers to operators in the hospitality industry to cushion them against losses.

See What Everyone is Watching

More From: Nation

Don't Miss

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.