17 March 2023

• KRA on February 28 stopped, with immediate effect, all payments of tax refunds currently amounting to Sh610 billion.

• The taxman says the claims will have to undergo an audit before any payments are made.

The decision by the Kenya Revenue Authority to suspend tax reliefs will not affect persons with disabilities, KRA has said.

The National Council for Persons with Disabilities had written to KRA requesting for clarification on the press release suspending all tax reliefs.

But in a formal response to the council, KRA acting commissioner general Rispah Simiyu said the earlier directive does not in any way affect the tax exemption and privileges granted to persons with disabilities under the Persons with Disabilities Act.

“Hence, the approvals for the exemptions will continue being processed in line with the law and laid-down procedures,” NCPWD executive director Harun Hassan said in a statement.

“The Council appreciates KRA for the steady support as we continue striving to make the tax exemption process for persons with disabilities more streamlined.”

KRA on February 28 stopped, with immediate effect, all payments of tax refunds currently amounting to Sh610 billion.

The taxman says the claims will have to undergo an audit before any payments are made.

Chairman Anthony Mwaura says the decision to suspend the payments will enhance the current processes related to the payment of tax refunds, exemptions, waivers and abandonments.

“In the past five years, KRA has granted tax reliefs and incentives totalling Sh610 billion, with an average of Sh122 billion per annum. The move to suspend the payment of tax reliefs allows KRA to audit and enhance the tax relief processes and procedures,” Mwaura said.

According to KRA, the suspension of tax reliefs follows concerns from taxpayers, initiating the need to restructure rules and procedures governing tax exemptions.