Kenyan national executive to take pay cuts as Covid-19 weighs on economy
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CAPE TOWN - Kenyan President Uhuru Kenyatta has announced an 80 percent salary cut for him and his deputy while other senior government officials will also take reductions on a lower scale to try and ease economic strain on the country.
In a statement, Kenyatta said the pay reductions were in solidarity with millions of Kenyan suffering the anxiety of job losses in the face of the worldwide Covid-19 pandemic.
“In sharing the burden occasioned by the present global health pandemic, over the duration of the global crisis and commencing immediately, my administration has offered a voluntary reduction in the salaries of the senior ranks of the national executive,” he said.
Chief administrative secretaries will see a 30 percent salary decrease while that for principal secretaries will fall by 20 percent.
Kenyatta said the national treasury would implement an immediate reduction of value-added-tax from 16 percent to 14 percent, effective from April 1.
He instituted 100 percent tax relief for people earning a gross monthly income of up to Ksh24,000 (about $226) and lowered income tax as well as corporate tax from 30 percent to 25 percent.
“I recognize the anxiety that this pandemic has caused millions of Kenyan families; fearful of what the future may hold for them and their children. And the possibility of job losses and loss of income weighing heavily on their minds,” said Kenyatta.
An additional Ksh10 billion will be made available to the elderly, orphans and other vulnerable members of society through cash transfers by the ministry of labour and social protection.
The Kenyan president said the number of confirmed Covid-19 cases in the country had increased from 25 to 28, while the global figure was at over 400 000 across 184 countries.
“Amidst this trend, I am pleased to announce that numerous other suspected cases have been found to be negative after rigorous testing. More importantly, we have today registered one recovery of the patients. This is a clear indication that we can and we will beat the virus,” he said.
Kenyatta said both Kenyans and foreigners remain under close monitoring in either self-quarantine or compulsory quarantine.