Businesses across the country are set to receive Sh10 billion from the Kenya Revenue Authority (KRA) as refunds of Value added Tax (VAT) starts this month.
The refunds are expected to offer financial relief to businesses, particularly those in the horticulture, transport and hospitality sectors, which have been hit by the coronavirus pandemic.
This follows the presidential directive to cushion businesses against adverse effects of the pandemic that was issued last month.
“We have begun paying various business 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 Commissioner for Domestic Taxes Elizabeth Meyo.
SEE ALSO: Vasco Da Gama pillar shielded from sea waves
On May 23, President Uhuru Kenyatta announced Sh53.7 billion economic stimulus programme and allocated Sh10 billion to resuscitating of businesses.
Another Sh3 billion was channeled to the credit guarantee scheme to enable small and medium businesses to acquire loans at favourable terms.
Under the scheme, the State will pay part of the loans incurred by the SMEs, thus increase the base of borrowers.
The biggest beneficiaries in the economic stimulus package are the road works contractors, whose dues worth Sh30 billion were settled by the State.
Once the construction works begin, 200,000 youths will be employed as casual labourers in a bid to help them improve their livelihood during the pandemic.
SEE ALSO: Our policies must focus on our animals
The hospitality industry, which had almost grounded to a halt, was granted Sh2 billion, which would be accessed in credit under preferential and prospectively interest-free terms.
In line with the President’s promise to pay bills owed to suppliers, the National Youth Service (NYS) announced plans to fast-track payments to their suppliers for all outstanding bills amounting to at least Sh6 billion.