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Uhuru, Ruto propose to take 80% salary reduction during COVID-19 crisis

Tuko logo Tuko 25/03/2020 Asher Omondi

Kenya's president Uhuru Kenyatta (R) waves to the welcoming crowd  flanked by deputy-president William Ruto on October 9, 2014 in Nairobi, a day after becoming the first sitting president to appear before the International Criminal Court on crimes against humanity charges. AFP PHOTO/SIMON MAINA        (Photo credit should read SIMON MAINA/AFP/Getty Images)

Kenya's president Uhuru Kenyatta (R) waves to the welcoming crowd flanked by deputy-president William Ruto on October 9, 2014 in Nairobi, a day after becoming the first sitting president to appear before the International Criminal Court on crimes against humanity charges. AFP PHOTO/SIMON MAINA (Photo credit should read SIMON MAINA/AFP/Getty Images)

President Uhuru Kenyatta has announced voluntary reduction of salaries of senior state officers owing to unprecedented economic time resulting from coronavirus pandemic.

As a result, Uhuru and Deputy President William Ruto have proposed to take 80% pay cut while Cabinet secretaries will take home 30% less of their monthly earnings.

President Uhuru temporally suspended credit reference bureau (CRB) listing of debtors whose loan account fall overdue or will be in arrears effective April 1, 2020. Photo: Uhuru Kenyatta.

At the same time, it was directed that principal secretaries and chief administrative secretaries receive 20% and 30% pay cuts.

"I call on the other arms of government and tiers of government to join us in this national endeavour, by making similar voluntary reductions which will free-up monies to combat this pandemic," he appealed.

Additionally, Uhuru temporally suspended credit reference bureau (CRB) listing for any person, small or medium enterprises whose loan account fall overdue or will be in arrears effective April 1, 2020.

In recognising the anxiety that the pandemic has caused among Kenyans, and the uncertainty of future job prospects, Uhuru further ordered 100 % tax relief for persons earning gross monthly income of up to KSh 24,000.

Mbagathi National Hospital infectious disease unit which was opened up recently.The government will employ more nurses to deal with the virus. Photo: Kenyatta National Hospital.

Related slideshow: Famous people who are making donations during the COVID-19 pandemic (Provided by Photo Services)

The national Treasury will effect immediate reduction of both income tax rate (Pay As You Earn) and corporation tax from 30 % to 25 % effective April 1, 2020.

To cushion traders, all micro, small and medium enterprises will enjoy a reduction of the turnover tax rate from the current 3% to 1%.

Further, the national Treasury shall cause immediate reduction of the VAT from 16% to 14%, effective April 1, 2020.

In order to step up its response to the pandemic, the government will divert KSh 1 billion from the Universal Health Coverage kitty to recruiting additional health workers.

"In that regard, I further direct the Ministry of Health, the county governments and the Public Service Commission to expedite the recruitment process," he stressed.

The Head of State confirmed the first recovery case of COVID-19 in Kenya despite three more cases recorded bringing the number to 28 so far.


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