The Government has prioritized four Key areas while allocating funds in the 2020/2021budgetas follows;
 

Sector	Allocation in (Kshs  bn)	Impact
Education	497.7	10,000 intern teachers, 250,000 locally fabricated desks, hire1000 I.T. interns
Infrastructure	172.4	Rehabilitation of access roads, bridges and railway
Security	167.9	Equipping agencies to strengthen their effectiveness
Health Sector	111.7	Improved health outcomes

 
Further, the 2020 budget highlight covers the following areas.

• Direct Taxes
• VAT
• Protection of Local Industries
• Curb on Tax Cheats
• Digital Taxation
• Budgetary stimulus package overview

DIRECT TAXES

The National Treasury has proposed to subject direct taxes to certain aspects of incomes for individuals and corporates as follows:

Individuals: Incomes from Home Ownership Savings Plans (HOSP), bonuses, overtimes and retirement benefits will now be subject to tax.

Corporates and businesses: Corporation tax still remains at 25% according to the Tax Amendment Act 2020.However, the budget has proposed to introduce a minimum tax of 1% on gross turnover for loss making companies at any given financial year. 
Treasury argues that businesses even when in a loss position continue to enjoy Government facilities such as infrastructure whose cost of construction and maintenance is serviced by revenues contributed by other patriotic taxpayers.

Corporate residential rental income: According to the Tax Laws (Amendment) Act, 2020 the tax rates for many taxpayers were reduced whereas the tax rate for landlords did not change. However, the budget has considered tax reduction for landlords by increasing the residential tax bands from Ksh. 10 million to Ksh.15 million. This is a welcome relief for landlords who are under pressure to reduce or defer rent payments to help tenants cope with the effects of the COVID-19 pandemic.

Read more here.