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VAT rate from 14% back to 16% effective 1 January 2021

On 4 December 2020, the Kenyan Cabinet Secretary for the National Treasury & Planning issued a public notice highlighting that certain tax measures that the Government of Kenya had extended at the onset of the COVID-19 pandemic are proposed to cease on 31 December 2020.  As this is only a public notice, it has no legal effect to implement the changes. It is expected that the appropriate legal procedures will be followed to have a legal instrument to effect these changes in the respective tax legislations.

 

Source: EY

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