On 8 May 2020, A&K and the Kenya Property Developers Association held a webinar on the Impact of COVID-19 on the Kenyan Real Estate Sector. The reality of the COVID-19 pandemic presents a number of unforeseen and far-reaching implications on markets and economies across the globe. From a real estate perspective, the pandemic has had an immediate impact as different measures are taken by the Government and other authorities have come to the fore in a bid to mitigate it.
- The implications of the recent changes to other legislation, including laws that were in force before COVID-19 ensued.
Some of the laws and bills covered included, Business Laws (Amendment) Act 2020, Public Health (COVID-19 Restriction of Movement of Persons and Related Measures) Rules 2020, Public Health (Prevention, Control and Suppression of Covid-19) Regulations 2020, Public Order (State Curfew) Order, 2020, Tax Laws (Amendment) Act, 2020, Pandemic Response Management Bill 2020, Land Registration (Electronic Transaction) Regulations, 2020 and The National Construction Authority has prepared the Standards for Management of Construction Sites and Welfare of Workers
- The implications of the recent changes to tax legislation and recent proposed changes to tax legislation, including major highlights that cover VAT, PAYE, Corporation Tax, The Finance Bill 2020, and the Tax Laws (Amendment) Act 2020, and major proposals from these bills and acts. These include: Introduction of a minimum tax at 1% of the turnover of a person, increase in the highest limit of rental income subject to RRI at 10% from KES 10 million to KES 15 million, proposal to remove tax deductions allowed in respect to contributions made to a registered HOSP and to further tax the income of a HOSP, expenditure incurred on the construction of social infrastructure such as public school, hospital, roads not be included as allowable deductions, new requirements for input VAT claims – VAA to be legitimised, and introduction of a voluntary tax disclosure programme.
- Force majeure implications on leases, sale transactions and construction.
This covered the civil law concept, its application in Kenya., its application in contracts, the doctrine and elements of frustration, the impact on sale and purchase agreements and several case laws indicative of the relevant application, including issues to consider in construction contracts in a commercial context.