New 3% tax for SMEs: Small and Mid-sized business operators will from today begin paying a new 3 per cent tax levy on their sales to the Kenya Revenue Authority (KRA).
The levy is reintroduced after President Uhuru Kenyatta signed the Finance Act 2019 into law on November 7, 2017.
The move may hurt small business whose turnover is below Sh5 million a year. This happens even as the central bank warns of tough economic times as well safety the year 2020.
Previously the government affirmed their support for small business to grow but with the introduction of the new tax this just confirms how the government has mastered the art of double speaking.