tax changes in january-kreston km

Tax changes in January 2021

Kenya made changes to the tax rates through the Tax Laws (Amendment)  Act No. 2 of 2020 published on 24 December 2020  and Legal notice No. 206 of 2020 published on 2 December 2020. The legal notice No. 206 and the Tax Laws (amendment) enacted the cessation of some of the tax relief measures extended by the Government at the onset of the COVID-19 pandemic.

The key highlights include:

  1. Change of individual tax brackets with reinstatement of the 30% rate
  2. VAT rate reverts to 16% effective 1 January 2021
  3. Reinstatement of 30% corporation tax
  4. Introduction of the Digital Service Tax and minimum tax

For more information, please contact our Tax Partner, FCPA David Muchungu on: or 0720 018525

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