The Kenya Revenue Authority (KRA) has begun paying out Ksh.10 billion in VAT refunds following a presidential directive and release of funds by National Treasury.
The refunds are expected to offer financial relief to businesses worst hit by the Covid-19 pandemic especially the horticulture, transport and hospitality sectors of the economy.
“We have begun paying various businesses entities VAT refunds from special funds allocated by the government and released to KRA and expect to finalise the payments process in one Week”, said the Commissioner for Domestic Taxes Ms. Elizabeth Meyo.
According to Central Bank of Kenya (CBK) governor, Patrick Njoroge, at least 75 of small and medium businesses risks closure by end of June due to lack of funds as coronavirus bites.
This translates to close to eight businesses out of every 10, a situation the CBK governor described as dire and required quick interventions for a sector that accounts for 70 percent of new jobs in the country.
The statement by the taxman indicated that only those business entities that have had their refunds claims verified in line with procedures will receive payments,” said Ms. Meyo.