Kenya: Coronavirus – Inside Lawyers’ Plan to Save the Economy

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.

TAX INCENTIVES

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.