Home News Government forecasts loss of Ksh172 billion in revenue

Government forecasts loss of Ksh172 billion in revenue

The state has projected a revenue loss of Ksh172 billion after the tax incentives are used in measures to curb the effects of the Coronavirus epidemic.

Cabinet Secretary for National Treasury and Planning Ukur Yatani said on Tuesday that they had a growth projection of 6 percent, which was reviewed down to less than 3 percent.

The CS said that the measures put in place by the government would result in a loss of Ksh60 billion every month for the following three months.

“For us to be able to manage the situation, we shall reallocate funds from the sub development projects to allow us to have a financial flow to deal with the pandemic,” said Yatani.

These remarks came after the Director of Public Prosecution (DPP) Noordin Haji handed Yatani a Ksh2 billion cheque.

Yatani added that the capital under the Covid-19 Emergency Response Fund would be used to support the most vulnerable in society.

The CS said it was evident that the revenues would shrink now that every country, including Kenya, is revising growth projection downwards.

Yatani further said that the need for budget support to deal with the Covid-19 crisis was increasing by the day.

“We have been receiving outrageous proposals from committees, and looking at the figures, they are far past our imagination,” he added.

Yatani also said that the reduction of the VAT should give the citizens a relief as the prices of essential goods are expected to reduce. He urges the business communities around the country to have empathy and ease the burden for Kenyans.

The CS confirmed that Ksh10 billion had been saved to supplement the Emergency Response Fund as the President had directed.

He also stated that there was an additional Ksh10 billion from the Value Added Tax (VAT) refund and that regardless of the present situation, disbursement of funds to the counties would continue.

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