President Uhuru Kenyatta has this evening at State House, Nairobi signed into law the 2020/21 Budget, the 2020 Finance Bill and the 2019/20 Third Supplementary Budget.
The 3.2 trillion 2020/21 Budget contains a Ksh 56.6 billion post Covid-19 economic stimulus package and an allocation of Ksh 128.3 billion to the Government’s Big Four agenda.
The 2020 Finance Bill which is now law has several amendments targeted at cushioning Kenyans from the adverse effects of the Covid-19 pandemic.
Some of the amendments in the Finance Act include the zero rating of VAT on maize, cassava and wheat flour for 6 months so as to make unga affordable. This will be a relief to many who had feared a price hike of the essential commodities.
The new Finance Act also extends the zero rating of VAT on cooking gas for one year also a relief to many albeit for a short term.
The third 2019/20 supplementary budget of Ksh 18.4 billion was approved by the National Assembly to address the Covid-19 health crisis and other emerging challenges.
The Supplementary budget includes Ksh 5 billion allocated to Counties for Coronavirus response and Ksh 3.4 billion earmarked for Covid-19 allowances to frontline health workers.