Kenya is expected to widen the tax bracket, freeze employment and put more civil servants on contracts as part of the conditions by IMF for its $2.4 billion (Sh261 billion) loan. In a statement after the meeting, the IMF's delegation praised Kenya for reversing some of the earlier extraordinary tax measures introduced at the outset of the Covid-19. Kenya went back to the initial tax packages early this year after easing them to cushion households against the social-economic vagaries of Covid-19. It reinstated Value Added Tax to 16 per cent after dropping it to 14 per cent. Despite these measures, IMF wants Kenya to further widen its the tax streams going forward.

Source: The Star February 17, 2021 00:56 UTC