Presidential policies that consider the hardest hit

On April 25th, President Kenyatta signed into law the Tax Laws (Amendment) Bill, 2020. The law was originally published on March 30 in order to ensure that Kenyan individuals and business owners are financially protected during the Covid-19 pandemic period. It focuses on income tax, value added tax, and retirement funds, amongst other issues.

The recent amendments make a few changes so that small-scale traders and low income earners will have even more tax relief during the coming months. First, it raises the threshold for turnover tax to between one and fifty million shillings, so as to exclude small-scale traders, while also lowering the turnover tax rate from three to one percent.

It also raises the 100 per cent pay-as-you-earn (PAYE) tax relief threshold from Sh 24,000 to Sh 28,000 a month. In other words, low-income earners will be protected from allotting their salary to taxes. In addition, those earning above the new threshold will benefit from a tax reduction of between 25 to 30 per cent.

Several other measures in the bill offer tax relief to pensioners and small business owners who are now struggling to make ends meet amidst the current economic situation.

Though this means that the Kenyan treasury will temporarily be operating on a limited budget, these are the kinds of measures that are needed to protect an economy, and most importantly, the most vulnerable individuals and families.

Quickly putting in motion an actionable tax bill, and then amending it with even more considerate measures, is exactly the kind of flexibility we need from a leader right now, amidst the quickly changing environment in which we currently inhabit.

Everyday we hear new updates about possible vaccines, numbers of people infected and recovered patients, and new laws and guidelines across the world. Doctors are struggling to understand the virus and how to best mitigate it, as we wait with baited breath for further updates.

The situation, globally, is extremely volatile right now. Making a decision early rather than later can quite literally save lives. We need authorities to be on their toes at all times, and we are fortunate that that is the kind of president we have elected.

From the onset of the first few cases in Kenya, President Kenyatta has reacted rapidly and with confident assurance. Frankly, Kenya does not have time for a president that wavers or for one with delayed responses.

If we had someone with the personality and leadership style of Donald Trump leading our country, we would be in a dire situation indeed.

A president who pays attention is a president who delivers results. Despite the progress of recent years, Kenya was already in a vulnerable position as a low-medium income country. We do not have the luxuries that high income countries enjoy. As a result, we are more susceptible to the effects of such global crises than other nations.

We have been prone to food insecurity and to health pandemics. We are disproportionately affected by climate change. There is no need to pity ourselves, but it is a good thing we recognise it.

It is a good thing that our president does not ignore these problems and pretend like everything is okay. There is work to be done, and that need is ever more urgent today, as we work, as one nation, to make sure that we have done all that we can to mitigate the spread of this elusive and lethal virus.

As citizens, it is not only our responsibility, but our moral imperative to stay at home as much as possible, to avoid physical contact, to cover our faces when outside and to keep our hands clean. And the government has a responsibility to us as well. The relationship is reciprocal.

The president has reached the understanding that as a result of having to stay at home, many Kenyans will be losing their income, or taking a sharp reduction in pay. Many people are going to be struggling in the coming months to put food on the table. And that is why he is protecting us with this new tax bill. We should all be doing what we can, and trust that things will go back to normal.

Michael Cherambos is a social, political and economic commentator based in Nairobi. [email protected]