Treasury secretary Ukur Yatani wants monthly or lump sum pension paid to senior citizens subjected to applicable income taxes through the proposed changes in the Finance Bill 2020.

Mr Yatani has reintroduced the proposal in the Bill after it was voted out by lawmakers in the Tax Amendment Act which was passed in April to cushion businesses and workers from Covid-19 shocks.

It appears that the bigger concern for the government is how to increase its revenues to reduce the mismatch with its expenditures. The sharp decline in government revenues as a result of the negative impact of the pandemic on economic activity and tax cuts, particularly on individual taxpayers means that we should expect a wider fiscal deficit for as long as the current economic conditions persist.

In Kenya, the potential spread of the disease is likely to affect the well being of citizens, and an increase in the number of poor and vulnerable households is imminent.  This calls for a swift and coordinated policy approach by the Government in responding to the crisis to cushion Kenyans from the adverse effects of the pandemic. For the Government to respond appropriately, quality data on the effects of the pandemic is urgently needed.