Economic reforms key to government’s fight against Covid-19

The recent move by President Uhuru Kenyatta to take an 80 per cent pay cut as the country deals with the Covid-19 pandemic is a move in the right direction.

Deputy President William Ruto also took a similar pay cut, while Cabinet Secretaries and Chief Administrative Secretaries will take a 30 per cent pay cut as the country fights the spread of the deadly virus. 

President Kenyatta has also instructed the National Treasury to offer tax relief to Kenyans earning a gross income of Sh24,000 or less.

The maximum income tax rate, which is typically 30 per cent will be reduced by five per cent.

Corporate taxation will also be reduced from 30 to 25 per cent. All of these measures aim to stabilise the financial situations of both employers and employees.

Finally, Sh1 billion from the Universal Health Care budget will be reallocated to directly address obstacles that arise from Covid-19, as well as improving mitigation efforts.

The President urged Kenyans to heed the new measures adopted to fight the global pandemic. What we need is a combination of top-down leadership and bottom-up participation to fight the virus.

Reducing tax rates is a bold move to ensure that emergencies are addressed by the government. 

Many governments have failed to stop the rapid spread of the virus. This lack of response encouraged the rapid spread of the virus globally.

The government’s decision to invest in the health sector during crises is inevitable. Kenya has suffered economic issues since independence.   

However, over the past few years and months we have benefitted from educational restructuring. A more educated, youthful workforce is keys to economic growth.

At this point, the government’s Vision 2030 development goals will be temporarily paused, but this does not mean we should give up on our aspirations, we must work a little harder to get there.

While the government puts in place emergency measures, it is our duty as citizens to abide by them and to support each other in these difficult times. This means observing social distancing, working from home when we can, and keeping indoors as much as possible.

Together, we can overcome coronavirus and come out of the pandemic stronger, more unified, and ready to face global challenges together as a nation.