The Tax Laws (Amendment) Act, 2020

The Tax Laws (Amendment) Act, 2020 which was aimed at making certain fiscal changes to the taxation regime as a response to the Covid-19 pandemic so as to cushion Kenyans against adverse economic and financial effects from the pandemic, has made significant changes to Kenya's tax landscape. Some of these changes include overhauling the capital and investment allowances and tax exemption regime under the Income Tax Act, as well as reduction of the corporate tax rate, Pay As You Earn tax bands, VAT rate, expanding the list of the items that are subject to VAT with previously exempted supplies, among others.

As a direct response to Covid-19, the Act also provides for VAT exemption for personal protective equipment for use by medical personnel and members of the public in the case of a pandemic such as Covid-19.