On 23 December 2020, the President of Kenya signed the Tax Law Amendment Act (No. 2) of 2020 which amends the Income Tax Act and the Value Added Tax (VAT) Act of Kenya. Critical changes include reinstating corporation tax to 30%, the VAT rate to 16% and the top PAYE band to 30% among other measures.
The legislation was introduced 27 November 2020, and then assented to on 23 December 2020 and published on 24 December 2020. Provisions of the Tax Laws (Amendment) (No. 2) Act, 2020 were effective 1 January 2021.
