NAIROBI, Kenya, April 24 –The Senate Ad Hoc Committee on COVID-19 Thursday said it will not halt its plan to proceed with the Pandemic Response and Management Bill (2020) despite the inclusion of some of the core issues it seeks to address in the Employment (Amendment) Act passed by the National Assembly.
Committee Chairperson Johnson Sakaja said approved National Assembly amendments to the Employment Act were copied its proposed Bill.
“You have seen the National Assembly has copy pasted a lot of ideas into the Bill that they have passed, and so as we forge on with our Bill. It is a shot in the arm, however, they have drafted it poorly in certain aspects,” he told the committee members.
The Senate Bill has already been published in the Kenya Gazette to facilitate public participation ahead of its tabling on Monday next week for first reading.
The Bill, just like the amended version of the employment act, has some clauses addressing employment issues including a proposal that Kenyans should not be laid off or coerced to take pay cuts by their employers.
The Bill states that employers shall not terminate a contract of service.
“Despite sub-section (1), where an employer is unable to meet his obligations to pay salaries or wages, the employer shall permit an employee to take leave of absence without pay for the duration of the pandemic,” it states.
The Labour Cabinet Secretary shall develop measures to protect the employer and the employee during the pandemic, it further proposes.
Sakaja, nonetheless acknowledged that amendments to the Employment Act by National Assembly are viable if meant to cushion Kenyans affected by the pandemic.
In their proposal, the Senate team also wants borrowers saved from the burden of paying penalties and the Credit Reference Bureau (CRB) barred from listing those who default during the pandemic period.
“Lenders shall not charge fees, interest or any other penalty for non-payment or late payment of obligations during the pandemic period,” it states.
Besides the amendments to Employment Act, National Assembly adopted the Tax Laws Amendments Bill which will, among other things, offer employees earning less than Sh24,000 a 100 percent tax relief with those earning amounts exceeding sH24,000 paying a maximum of 25 percent income tax down from 30 per cent.
Under the new bill, companies will enjoy a 5 per cent reduction of corporate tax from the current 30 to 25 per cent while Small and Micro Enterprises’ (SME’s) turnover tax will be reduced from 3 percent to one percent.
