Finance Bill, 2024

| Bill for Introduction into theNational Assembly | PAGE | |---------------------------------------------------|--------| | The FinanceBill.2024 | 551 |

THEFINANCEBILL,2024

ABill for

AN ACTof Parliament to amend the law relating to various taxes and duties:and for matters incidental thereto

ENACTEDby theParliament ofKenya asfollows-

PARTI-PRELIMINARY

• 1.This Act may be cited as the Finance Act,2024, and shall come into operation,or be deemed to have come into operation,as follows-
• (a)on the Ist September,2024,section 42(a)(i(D).J)
• and(K);
• (b)on the 1st January,2025,sections 8,12and 25(b)(v):and
• (c)all other sections.on the 1st July.2024.

PARTII-INCOMETAX

• 2.Section 2of the Income Tax Act is amended-
• (a)in the definition of"digital content monetisation" by inserting the following newparagraphs immediately after paragraph (h)-
• j)creativeworks,
• (k)creating or sharing of the material;or
• 1)any other material that is not exempt under this
• Act:
• (b)in the definition ofindividual retirement fund" bydeleting the words "and registered individual retirement fund means an individual retirement fund where thetrust deed for such a fund hasbeen registeredwith the Commissioner";
• (c)in the definition of"pension fund,by deleting the which has been registeredwith the Commissioner in such manner as may beprescribed";
• (d)in the definition of"provident fund",by deleting the words"and registered provident fund means

Short title and

commencement.

Amendmentof section2of Cap. 470.

one which has with the Commissioner in such manner asmaybe

been registered prescribed",

• (e)by deleting the definition of"wife'semployment
• income":
• ()by deleting the definition ofwife'sprofessional income":
• (g)by deleting the definition of"wife's professional
• income rate";
• (h)by deleting the definition of"wife'sself-
• employmentincome";
• (i)by deletingthe definition of"wife's self-
• employment incomerate";
• by deleting the definition of "related person"and substituting therefor the following new definition-

"related person"means in the case of two persons,

either person whoparticipates directly orindirectly in the management,control or capital of the business of the other person,and in the case of more than the two persons,-

• (a)any other person who participates directly or indirectly in themanagement,control or capital of thebusiness ofthetwopersons;or
• (b)an individual who-
• 1participates directlyorindirectlyin the management,control or capital of the business of the two persons;and
• (ii)is associated to the two persons by marriage, consanguinity or affinity and the two persons participate inthe management,control or capital of the business of the individual;
• (k)bydeleting the definitionof"royalty and substituting therefor the following new definition-

"royalty"means a payment made as a consideration

for the use or the right to use-

• (a)any copyright of a literary.artistic or scientific
• work;

• (b)any software,proprietary or off-the-shelf,whether in the form of licence,development,training, maintenance or support fees and includes the
• distribution of the software:
• (c)any cinematograph film,including a film or tape forradio ortelevision broadcasting;
• (d)any patent,trademark,design or model.plan,
• formula or process;
• (e)any industrial,commercialor scientific equipment;
• 10
• (finformation concerning industrial,commercial or scientific equipment or experience,and any gains derived from the sale or exchange of any right or
• propertygivingriseto thatroyalty;
• (l)by inserting the following new definitions in
• properalphabetical sequence-

"donation"means a benefit in money in any form,

promissorynote orabenefit inkind conferred on aperson without any consideration;

public entity"means a ministry.state department, state corporation,county department or agency of the national or county Govemment;

"registered individual retirement fund"means an individualretirement fund where the trust deed for sucha fund has been registered with the Retirement Benefits Authority;

"registered pension fund"means a pension fund which has beenregistered with theRetirement BenefitsAuthority;

"registered provident fund"means a provident fund which has been registered with the Retirement Benefits Authority.

• 3.Section 3 of the Income Tax Act isamended in subsection (3),by deleting paragraph (ba)and substituting thereforthefollowingnewparagraph
• (ba)"digital marketplace"means an online or electronic platform which enablesa person to sell orprovidegoods,property orservices
• including-

Amendmentof section3of Cap 470.

• (a)ride-hailing services;
• (b) food delivery services;
• (c)freelance services;
• (d)professional services;
• (e)rental services;
• ( task-based services;and
• (g)any other servicethat isnot exempt from
• tax under this Act.
• 4.Section 4A of theIncome Tax Act is amended in subsection (1)(ii),by deleting the words "five years"and substituting therefor the words"three years".
• 5.The Income Tax Act is amended by inserting the
• followingnewsection immediatelyafter section4B-

Income from supply of goods topublic entity.

• 4C.The payment received by a person
• from a publicentity for the supply ofgoods shall be deemed to be the income of the person for the year of income in which the payment is received.
• 6.Section 5of theIncome TaxAct is amended-
• (a)in subsection(2)-
• (i)in paragraph (a)(i),by deleting the words "thefirst two thousandshillings" and substituting therefor the words "andthe employer has a policy on the payment and accounting for subsistence, travelling, entertainment or other allowances,anamount not exceeding five per cent of the monthly gross earnings of the employee";
• (i)in paragraph (b),by deleting the words"thirtysix thousand shillings' and substituting thereforthewords"forty-eightthousand
• shillings";
• (b)in subsection(4)-
• (i)in paragraph (f),by deleting the words "fortyeight thousand shillingsand substituting therefor the word"sixty thousand shillings".

Amendment of section4A of Cap.

Insertion of new section 4C to Cap

Amendment of

section5of Cap. 470.

• (ii)by inserting the following new paragraph immediatelyafterparagraph(f)-
• (fa)any amount paid or granted to a public officertoreimburse anexpenditure incurred for the purposeof performing officialduties,notwithstanding the ownership orcontrolofanyassets purchased;
• (iii)in paragraph (g).by deleting the words"two hundred 1andforty thousandshillings appearing inparagraph(a)of the proviso and substituting therefor the words"three hundred
• and sixty thousand shillings"
• 7.Section 10 of theIncome Tax Act is amended by inserting the following new subsections immediately after subsection(3)-
• (4)Where a resident or a non-residentperson,
• beingtheowneroroperator ofadigital marketplace or platform,makes or facilitates payment in respect of digital content monetisation, goods,property or services,the amount thereof shall be deemed to be incomewhich accrued in or was derivedfromKenya.
• (5)In this section,"platform"means a digital platformorwebsite thatfacilitates the exchange of a short-term engagement,freelance or provision of a service,between a service provider,who is an independent contractor or freelancer,and a client orcustomer.
• 8.The Income Tax Act is amended by repealing section 12E and replacing it with the following new section-

Significant economic

presence tax.

• businesscarriedoutovera marketplace.
• 12E.(1)Notwithstanding any other provision of this Act,a tax known as significant economic presence tax shall be payable by a non-resident person whose income from the provision of services is derived from or accrues inKenya througha digital

Amendment of section 10 of Cap. 470.

Repeal and replacement of

section12Eof Cap.470.

• (2)Subsection(1)shall not apply-
• (a) to a non-resident person who offers the services through apermanent establishment;or
• (b)to anincome chargeable under
• section9(2)or section 10.
• (3)For the purposes of computing the tax under subsection (1),the taxable profit ofa person liable to pay the tax shall be deemed to be twenty per cent of the gross turnover.
• (4)A person subject to tax under this section shall submit a return and pay the tax due to the Commissioner on or before the twentieth day of the month following the end of the month in which the service was offered.
• (5)The Cabinet Secretary may make Regulations for the better implementation of
• this section.
• 9.The Income Tax Act is amended by inserting the followingnewsections immediately after section 12F

Minimum top-up tax.

• 12G.(1) Notwithstandingany other provision of this Act,a tax known as minimum top-up tax shall be payable by a covered personwherethecombined effective taxrateinrespect of that person for a year of income is less than fifteenper cent.
• (2)The combined effective taxrate for a covered person shall be the sum of all the adjusted covered taxes,divided by the sum ofall netincome or loss for the year of income,multiplied bya hundred.
• (3)The amount of tax payable shall be the difference between fifteen per cent of the net income orlossfor the year of income of acovered person,andthe combined effective tax rate for the year of income, multiplied bythe excess profit ofthe covered persons.

Insertion of new

12Hof Cap.470.

• (4)This section shall not apply-
• (a)to a public entity that is not
• engaged in business;
• (b)to aperson whose incomeisexempt from tax underparagraph10of the
• First Schedule;
• (c)to a pension fund and the assets of
• that pension fund;
• (d)to a real estate investment vehicle
• that is an ultimate parent entity:
• (e)toanon-operating holding company;
• investment
• (f)to an investment fund that is an
• ultimate parent entity;
• (g)toa sovereign wealth fund;or
• (h)to intergovernmental or supranational organisation including awholly owned agency or organ of the intergovernmental or supranational organisation.
• (5)In this section-

"adjusted covered taxes"means taxes recorded in the financialaccounts of a constituent entity for the income,profits,or shareof theincomeorprofitsofa constituent entity where the constituent entity owns an interest,and includes taxes ondistributedprofits,deemed profit distributions under this Act subject to such adjustments as may be prescribed;

"covered person" meansa resident personor apersonwith apermanent establishment in Kenya who is a member of a multinational group and the group has a consolidated annual turnover of seven hundred and fifty million Euros or more in the consolidated financial statements of the ultimate parent entity in at least two of the Motor vehicle tax.

fouryears of income immediately preceding

the testedyear ofincome;

"net income or loss"means the sum net

income or loss fortheyear ofincomeafter deductingthe sum of the losses ofa covered person as determined under a recognised accounting standards in Kenya;and

"excess profit"means the net income or loss ofa covered personfor the yearof incomeless-

• (a) ten per cent for the employee costs; and
• (b)eight per cent for the net book value
• oftangible assets.

Provided that the employee cost and bookvalue of tangibleassetsmaybe adjusted asprescribed in regulations.

• into
• (6)This section shallcome operation on the1st January,2025.
• 12H.(1) Notwithstanding any other provision of this Act,a tax known as motor vehicletaxshall bepayable tothe Commissioner oneach motor vehicle atthe
• time of the issuance of an insurance cover.
• (2)Motor vehicle tax shall be payable based on the value ofthe motor vehicle,at the rate specified in the Third Schedule.

Providedthatthe amountof tax payable-

• (a) shall not be less than five thousand shillings;and
• (b)shall not be more than one hundred
• thousand shillings.
• (3)The valueofa motor vehicle shall be determined on the basis of the make model,engine capacity in cubic centimetres and year of manufacture ofthemotor vehicle.

Cap.179.

• (4)An insurer ofa motorvehicles shall collect and remit motor vehicle taxwithin five working days after issuing a motor
• vehicle insurance cover.
• (5)An insurer who fails to collect and remit motor vehicle tax shall be liable to
• pay-
• (a)a penalty equivalent to fifty per cent of the uncollected tax;and
• (b)the actual amount ofthe uncollected tax.
• (6)Notwithstanding the provisions of this section,motor vehicle tax shall not be payable in respect of an ambulance,ora motor vehicle ownedby the national government,county government,Kenya Defence Forces,National Police Service, National Intelligence Service or a person exempt from tax under the Privileges and Immunities Act.
• (7)The Commissioner may prescribe such guidelines as may be appropriate for thepurposes of determining thevaluation of a motor vehicle.
• 10.Section 15 of theIncomeTaxAct is amended-
• (a)in subsection(2)-
• in paragraph (ga),by deleting the expression "section 5(b)and substituting therefor the
• expression"section4(2)(b)":
• (ii)by inserting the following new paragraph immediately after paragraph(ga)-
• (gb) the amount considered as representing the diminution invalueofany implement,utensil or similar article employed in the production ofgains or profits,not being machinery or plant in respect of which a deduction may be made under the Second Schedule,at a

Amendment of section 15of Cap. 470.

rate of one hundred per cent in thatyear

ofincome;

• (ii) by inserting the following new paragraphs
• immediatelyafterparagraph(ab)-
• (ac) contributions made to the Social Health Insurance Fund in accordancewith section 27(a)and (b)of the Social Health Insurance Act,2023:

No.16of2023.

• (ad)in the case of an employee,the amount deducted in accordance with section 5(1)(a) of the Affordable Housing Act,No.2of2024. 2024;
• (ae)acontributionto apost-retirement medical fund subject to a limit of ten
• thousand shillingsper month;
• (b)in subsection (3)(b),by deleting the words "three therefor thewords three hundred and sixty
• hundredthousandshillings" and substituting thousand shillings";
• (c)in subsection(7)(a),by deleting the word "seven"
• 11.Section 18 of theIncome TaxAct is amended by deleting subsection(6).
• 12.The Income Tax Act is amended by inserting the followingnew section immediately aftersection18F-

Advance pricing agreement.

• 18G.(1)The Commissioner may enter
• into an advance pricing agreement with any person who undertakesatransaction contemplated under section 18(3)or section 18A.
• (2)The arm's length price for the transactioncontemplatedunder section 18(3)or section 18A shall be determined in accordancewiththeadvance pricing agreement entered into under subsection (1).
• (3)The advance pricing agreement entered into under subsection (l)shall be valid fora period that doesnotexceed five consecutive years.

Amendmentof

section 18of Cap 470.

Insertion of a new section18G to

Cap.470

• (4) Where the Commissioner determines that the person referred toin subsection (1)entered into the advance pricingagreement throughmisrepresentation offacts,theCommissioner shall issue a notice in writing to the person declaring the agreement to be null andvoid from the date the agreement wasentered into.
• 13.Section 21 of theIncome Tax Act is amended in
• investmentreceipts"
• 14.Section 22A of theIncome TaxActisamended
• (a)in subsection(l(e)-
• (i)by deleting the words"two hundred and forty thousand shillingsand substituting therefor the words"three hundred and sixty thousand shillings":
• (i)bydeletingthe words"twentythousand shillingsand substituting therefor the words "thirty thousand shillings";
• (b)in subsection(2)(c)
• ()by deleting the words"two hundred and forty thousand shillingsand substituting therefor the words "three hundred and sixty thousand
• shillings";
• (ii)bydeleting the words "twenty thousand shillingsand substituting therefor the words "thirty thousand shillings"
• (c)insubsection (3)(c),by deleting the words "two hundredand forty thousand shillingsand substituting therefor the words"three hundred and sixty thousand shillings"
• 15.Section 22B of the Income Tax Act is amended in
• subsection(2)(c)-
• (a)by deleting the words "two hundred and forty thousand shillingsand substituting therefor the wordsthreehundredandsixtythousand
• shillings";

Amendmentof section21 of Cap.

470.

Amendment of section22A.of Cap470

Amendment of section22Baf Cap.470.

• (b)by deleting the words"twenty thousand shillings and substitutingtherefor the wordsthirty thousand shillings".
• 16.Section 27 of the IncomeTax Act isamended by inserting the followingnew subsection immediately after subsection (lC)-
• (1D)Where the Commissioner fails to make a decision within the period specified in subsection (1C),the application shall be deemed allowed
• 17.The Income Tax Act is amended by repealing
• section30A.
• 18.Section 31 of the Income TaxAct is amended by deletingparagraph (v)of the proviso to subsection (1).
• 19.The Income Tax Act is amended by repealing section 34 and replacing it with the followingnew
• section-

Rates of tax.

• 34.(1)The tax chargeable on any income specified inthis Act shall be at the rate specified in the Third Schedule.
• (2)Subject tosubsection (1),the transfer of interest in a person shall be charged in accordance with the Ninth
• Schedule.
• 20.Section 35of theIncome TaxAct is amended-
• (a)in subsection (l),by inserting the following new paragraphs immediately after paragraph(q)
• (r)supply ofgoods to a public entity:
• (s)making or facilitating payment on a digital marketplace:
• (b)in subsection (3),by inserting the following
• paragraphs immediately after paragraph (l)-
• (m)supplyof goods toa public entity;
• (n)makingor facilitating payment on a digital marketplace.
• 21.The Income Tax Act is amended by repealing
• section 72C.

Amendment of seetion-27of Cap. 470.

Repeal of sectian 30A of Cap.470.

Amendment of

section 3lof Cap. 470.

Repeal and replacement of seclion34of Cap. 470.

Amendment of

section 35of Cap. 470.

section72Cof Cap.470.

• 22.Section 133 of the Income Tax Act is amended by deleting subsection (6).
• 23.The First Schedule to the Income Tax Act is
• amended-
• (a)by deletingparagraph6;
• (b)by deleting paragraph 13;
• (c)in paragraph 51,by inserting the following
• proviso-

Provided that this exemption shall only apply to

interest income accruing from bonds,notes or other similar securities used to raise funds for infrastructure and other social services,listed before the commencement of thisproviso.

• (d)by deletingparagraph 53 and substituting therefor
• thefollowingnewparagraph
• 53.Payment ofpension benefits from a registered pension fund,registered providentfund, registeredindividual retirement fundor NationalSocialSecurityFund,upon attainment of theretirement age determined in accordance with therules of the fund:

Provided that thisexemption shall also apply whereaperson-

• (a)retires prior to attaining the retirement age due to ill health;or
• (b)withdraws from the fund after the twenty years from the date ofregistration asa member of the fund.
• (e)by deletingparagraph 57 that reads asfollows
• 57.The income or principal sum of a registered family trust.
• by deleting paragraph 57 that reads as
• (f follows-
• 57.The income of the National Housing Development Fund.

Amendment of section 133of Cap.470.

Amendmentof the First Schedule to Cap.470

• (g)by deletingparagraph 58 thatreads-
• 58.Any capital gains relating to the transfer of title ofimmovableproperty toa family trust.
• (h)by deletingparagraph58 that reads-
• 58.Income earned byan individualwho is registered under the Ajira Digital Program for three yearsbeginning the Ist January,2020:

Provided that-

• (a)the individual shall qualify for the exemption uponpayment of registrationfee of ten thousand shillings per annum:and
• (b)the Cabinet Secretary shall,in consultation with the Cabinet Secretary responsible for matters relatingto information communication technology.issue Regulations for the better carryingout of thisprovision.
• i)by deleting paragraph59:
• j)in paragraph 60.by deleting the proviso and substitutingtherefor the followingnewprovisoProvided that-
• (a)the bond,note or security shall have a maturity
• ofat leastthree years,and
• (b)this exemption shall only apply to interest income accruing from a bond.note or other similar security used toraise funds for infrastructure and any other social service, projectand asset defined under Green Bonds Standards and Guidelines,and any other social servicelistedbefore the commencementof this proviso.
• (k)by deleting paragraph 71 and substituting therefor
• the followingparagraph-
• 71.Income earmed by a non-resident-contractor, sub-contractor.consultantoranemployee involved in theimplementation of aproject financed through a one hundred per cent grant under an agreement between the Government and a development partner,to the extent

provided for in the Agreement:

Provided that any other income not directly related to the project earned by that non-resident

contractor, sub-contractor. consultant employee shall be subject to tax.

• (1)by deleting paragraph 72and substituting therefor the following newparagraph-
• 72.Gains on transfer ofproperty within a special economic zone by a licensed special economic zone developer,enterprise oroperator.
• 24.The Second Schedule to the Income Tax Act is amended in paragraph 1 by deleting sub-paragraph(c)and
• substitutingtherefor thefollowingnewparagraph-

Capitalexpenditure imcurred

• (a)Purchase or acquisition of an indefeasible right to use fibre optic cable or spectrum license by B telecommunication

Provided that.in the case of the spectrum licensepurchased or acquired before the Ist July. 2024,the deduction shall be restricted to the unamortized portion over the remaining usefullife of the spectrum license.

• 25.TheThird Schedule to the Income Tax Act is amended-
• (a)in Head A-
• (i)by deleting paragraph 3:
• (i)by deleting paragraph4:
• (b)in Head B-
• (i)in paragraph 2,by deleting subparagraph (i):
• (i)inparagraph3-
• (A)bydeleting subparagraph substituting thereforthe

Rate of Investment Allowance

10%peryear,in equal

instalments.

• following

Amendment of the Second Seheduleto Cnp.470.

Amendment of the Third Schedule to Cap.470.

paragraph-

• (k)in respect of gains or profits which are chargeable to tax under section 9(1) from the business of a ship-owner or an air transport operator,where there is no reciprocal arrangementor treaty. three per cent of the gross amount received.
• (B)by inserting the followingproviso at the end of subparagraph (t)-

Provided that the tax so deducted shall be

final.

• inserting the following new after
• (C)by subparagraphs immediately subparagraph(t)-
• (u)in respect of a payment made by a public entity for supply of goods to the public entity,five per cent;
• (v)in respect of income deemed to have accrued in or been derived from a digital marketplace,twenty per cent.
• (ii)in paragraph 5
• (A)in subparagraph (b),by inserting the followingnew item immediately after
• item(i)-
• (iv)in respect of interest arising from a bond note or other similar security that hasa maturity of at least three years and used toraise funds for infrastructure and other social services,five per cent.
• (B)in subparagraph(d)-

(Aa) by deleting item (i):

• (Ab)bydeletingthe words "fifteen years"and substituting therefor the
• item (i);
• (C)in subparagraph (f)(i),by deleting the expression"theaggregatevalueof which is twenty-four thousand shillings

in a month or more"

• (D)in subparagraph (f(i).by deleting the words"the aggregate value of which is twenty-four thousand shillings ina
• month ormore":
• (E)by deleting subparagraph(jb);
• (F)by inserting the following new subparagraphs immediately after subparagraph(m)-
• (n) in respect of a payment made by a public entity for supply of goods to the public entity,three per cent,
• (o)in respect ofincome deemed to have accrued in or been derived from a digital marketplace,five per cent.
• (iv) by deletingparagraph12 and substituting therefor
• thefollowingnewparagraph-
• 12.The rate of tax in respect of significant
• economicpresence taxcharged under section 12E shall be thirty per cent of the deemed taxableprofit.
• (v)byinserting thefollowing newparagraphs
• immediately afterparagraph13-
• 14.The rate of tax in respect of capital gains charged under section 3(2)(f) shall be fifteen per cent which shall be a final tax:

Provided thatwhere theNairobiInternational

Financial Centre Authority certifiesthat

• (a)a firm has invested at least three billion
• shillings in at least one entity incorporated Orregistered inKenya within a period of two years;and
• (b)the transfer of the investment is to be made after five years of the date of the investment,

the applicable rate shall be five per cent.

• 15.The rate of tax inrespect of motor vehicle tax
• charged under section 12H shall be two point

fivepercent of thevalue ofthe motorvehicle.

• 26.The Eighth Schedule to the Income Tax Act is amended inPart T
• (a)in paragraph1
• ()in subparagraph (1),by deleting the definition of"company"and substituting therefor the followingnewdefimition-

"company" includesabody of persons

which carries on theactivities of amembers club or trade association thatis deemed to be carrying on a business under section 21;

• (b)by deleting paragraph(3):
• (c)in paragraph 6(2)(h)(v).by inserting the words"an individual"immediately after theword"where"

Amendment of the Eleventh Schedule to.Cap.470.

• 27.The Eleventh Schedule to theIncome Tax Act is amended in paragraph 4,by deleting the words"and in the eventoffailure to submit a return or latesubmission ofa return,theenterprise will be liable to a penalty of two thousand shillings per day for each day that the failure continues"

PARTII-VALUEADDEDTAX

• 28.Section2of the ValueAddedTax Actisamended byinsertingthe following new definition inproper alphabetical sequence-

Amendment of

section2of Cap. 476.

"tax invoiceincludes an electronic tax invoice issued in accordance withsection 23Aof the TaxProcedures Act.

• 29.Section 8ofthe Value Added Tax isamended in subsection (2),by inserting the word"andat the end of the opening sentence.
• 30.Section 12oftheValueAdded TaxAct is amended by inserting the following new subsection immediately after subsection(4)-
• (5)The time of supply for exported goods shall be the time when the registered person isin possession of therequired export confirmation
• documents,
• 31.Section17of the Value AddedTaxActis
• amended-

Cap.469B.

Amendment of

section 8of Cap. 476.

Amendment of section-12of Cap. 476.

Anendmentof section 17of Cap. 476.

Amendment of the Eighth Schedule toCap.470.

• (a)in subsection(5)-
• by deleting paragraph (c):
• (i)
• by deleting paragraph (d);
• (ii)by deleting paragraph (e);
• (b)by deleting subsection (7):
• (c)by deleting subsection (8).
• 32.Section 3lofthe Value AddedTax Act is
• amended in theproviso to subsection(l)
• (a)by deleting paragraph(d);
• (b)by deleting paragraph (e).
• 33.Section34oftheValueAddedTax Actis amended in subsection (l)
• (a)in paragraph (a),bydeleting thewords "five million shillingsand substitutingtherefor the words"eightmillion shillings";
• (b)in paragraph (b),by deleting the words "five million shillings"and substituting therefor the words"eight million shillings"
• 34.TheFirst Schedule to the Value Added TaxAct is amended
• (a)inPartI-
• (i)in Section A-
• (A) in the table-
• (Aa)by deleting
• tariff number "8802.30.00 pue the corresponding description:
• (Ab)by deleting tariff number "8802.60.00" and the corresponding description:
• (Ac)bydeletingthewords"gluten breadappearing at the end of the table;
• (Ad)by deleting the words"unleavened bread"appearing at the endof the table;

Amendmentof secton 31 of Cap 476.

Amendment of section34of Cap

476.

Amendment of the Firsi Sehedule.to Cap.476.

• (B)by deleting paragraph 49 and substituting therefor the following new paragraph-
• 49.Aircraft parts of Chapter 88.
• (C) by deleting paragraph 54;
• (D) in paragraph 57,by inserting the words "National Intelligence Service" immediately after the words "Kenya Defence Forces":
• (E) by deletingparagraph58:
• (F) by deleting paragraph 62:
• (G)
• by deleting paragraph 63;
• (H)
• by deleting paragraph 77;
• (I) by deleting paragraph 78;
• (J
• by deleting paragraph79:
• (K)
• (L)
• (M)
• by deleting paragraph 80;
• by deleting paragraph 81;
• by deleting paragraph 91:
• (N) by deleting paragraph 107;
• (0) by deleting paragraph 110;
• (P)
• in paragraph 113,by inserting the words "until thecompletion of the projects under development"at the end thereof;
• (Q) by deletingparagraph 114;
• inparagraph 144,by inserting the
• (R) followingnew definition-

"original equipment manufacturer" means a manufacturer of parts and subassemblieswho owns the intellectual property rights inthe parts or subassemblies.

• S
• inparagraph 145byinsertingthe followingproviso-

Provided that this paragraph shall not

apply to a special operating framework arrangement enteredintobythe

• T
• Government on or after the lst of July
• 2017.
• by deleting paragraph146;
• (U) by inserting the following new paragraphs immediately after paragraph
• 147-
• 148.Inputs and raw materials used in
• the manufactureofmosquito repellent on recommendation by the Cabinet Secretary responsible formattersrelating to health.
• 149.Mosquitorepellent.
• 150.Tea packagingmaterial.
• 151.Micronutrients,foliar feeds and
• bio-stimulants of Chapter38.
• 152.The supplyof motorcyclesof tariff heading8711.60.00.
• 153.Bioethanol vapour(BEV) Stoves
• classified underHS Code 7321.12.00(cookingappliances andplatewarmersfor liquid fuel).
• 154.Allinputs and rawmaterials whetherproduced locally or imported, supplied to manufacturers of agricultural pest control products upon recommendation by the Cabinet Secretary for the time being
• responsible for agriculture.
• 155.Agricultural pest control products.
• (i)by deleting Section B;
• (b)inPart II-
• (i)inparagraph 1-
• (A)by deleting subparagraph(c);
• (B)by deleting subparagraph(e);
• (C)by deleting subparagraph (f);

• (D)by deleting subparagraph(g);
• (E)by deleting subparagraph (i):
• (F)by deleting subparagraph (l);
• (G)by deleting subparagraph (m);
• (i)bydeleting paragraph2and substituting thereforthefollowingnewparagraph-
• 2.Insurance and reinsurancepremium.
• (ii)by deleting paragraph17:
• (iv)by deleting paragraph 18;
• (v)by deleting paragraph21;
• (vi)by deleting paragraph 26;
• (vii)by deleting paragraph27:
• (vii)
• byinserting the followingproviso in paragraph34-

Provided that thisparagraph shall notapply special operating framework

toa arrangemententered into by the Government on or after the 1st of July,2017.

• (ix)by inserting the following new paragraph
• immediately afterparagraph34-
• 35.Transfer of a business as a going
• concern.
• 35.TheSecondSchedule totheValueAdded Tax Act is amended inPart A-
• (a)by deleting paragraph 13A;
• (b)by deleting paragraph 16:
• (c)by deleting paragraph 19;
• (d)by deleting paragraph 21:
• (e)by deleting paragraph26:
• (f)by deleting paragraph 29;
• (g)by deleting paragraph 30;
• (h)by deleting paragraph 31;
• (i)by deleting paragraph 32:

Amendment of the Second Schedule to Cap.476.

• (j)by deletingparagraph 33:
• (k)by deleting paragraph 35.

PARTIV-EXCISEDUTY

• 36.Section 2of the Excise Duty Act is amended by inserting the following new subsectionimmediately after
• subsection(2)-
• (3)In this Act,goods shall be classified by referenceto the tariff codesset out in Annex 1to the Protocol on the Establishment of the East African Community Customs Union and in interpreting that Annex,the general rules of interpretation set out in the Annex shall apply.
• 37.Section5of theExciseDuty Act is amended-
• (a)in subsection (1),by inserting the following new
• paragraph immediately after paragraph(c)
• (d)excisable services offered inKenya by a nonresidentthrough a digitalplatform;
• (b)in subsection (3),by inserting the following new paragraph immediately after paragraph(c)-
• (d)under subsection (1)(d),shall be payable by the non-resident person offering the service.
• 38.Section 7of the Excise Duty Act is amended in
• after the word"beer".
• 39.The Excise Duty Act is amended by repealing
• section 14.
• 40.Section 17 of the Excise Duty Act is amended by deleting subsection (l)and substituting therefor the followingnew subsection-
• (1)Subjectto subsection (2),the Commissioner shall.within fourteen days of receipt of all the required valid documents, consider an application made under section 16 and grant or refusetogrant a licence to the applicant.
• 41.Section 36of theExcise Duty Actis amendedin subsection (1A),by deleting the words"twenty-four hours and substituting therefor the words"five working days"

Amendmentof section 2of Cap. 472.

Amendmentof section 5of Cap. 472.

Amendmentof

seclion7of Cap.

Repeal of section 14of Cap.472.

Amendment of section 17of Cap. 472.

Amendmentof section 36of Cap 472.

• 42.The First Schedule to the Excise DutyAct is
• amended-
• (a)in Part I-
• (i)in the second table ofparagraph 1-
• (A)by deleting the description "Motorcycles oftariff87.1lotherthan motorcycleambulances.locallyassembled motorcycles and electric motoreyclesand the correspondingrateofexcise duty and substitutingthereforthefollowing new description and corresponding rate of excise
• duty-

Description Rate ofExcise Duty

Motorcycles of tariff 10% of the value or shs. 87.11.60.00 other than 12.952.83 per unit, motorcycle ambulances and whichever is higher locallyassembled motorcycles

• (B)in the description of "Imported cartons, boxesand casesofcorrugatedpaper orpaper board and imported folding cartons,boxes and case of non-corrugated paper or paper board and imported skillets,free-hinge lid packetsoftariffheading4819.10.00, 4819.20.10and4819.20.90"by inserting the words"excluding imported cartons,boxes and cases, of corrugated paper. Or paperboard,folding cartons,skillets labels of paperandpaperboard,originatingfromEast African Community Partner States that meet the East African Community Rules of Origin"at the end thereof:
• (C)in the description of "Imported cement',by
• inserting the words"excluding clinkers";
• (D)in the description ofImported eggs of tariff heading 04.07",by inserting the words "excludingeggs originating fromEast African Community Partner States thatmeet the East African Community Rules of Origin'at the end thereof:

Amendment of the First Schedule to Cap.472

• (E)in the description ofImported onions of tariff heading 07.03",by inserting the words "excluding onions originating from East African CommunityPartner States thatmeet the East African Community Rules of Origin"at the end thereof:
• (F)in the description of "Imported potatoes, potatocrisps and potato chips oftariff heading07.01andimportedpotatoesof tariff numbers0710.10.00,2004.10.00and 2005.20.00"by insertingthe words "excludingpotatoes,potato crisps andpotato chips originating fromEast African Community Partner States that meet the East African Community Rules of Origin"at the end thereof:
• (G)in the description of"Articles of plasticof tariffheading 3923.30.00 and 3923.90.90" by deleting the word"imported";
• (H)in the description "Imported sugar confectionary of tariff heading 17.04",by deleting the corresponding rate of excise duty and substituting therefor the rate of
• exciseduty"Shs.257.55perkg
• Din the description of "Wines including fortified wines. and other alcoholic beveragesobtainedby fermentationof fruits".by deleting the correspondingrate of excise duty and substituting therefor therate ofexcise dutyshs.22.50 per centilitre of pure alcohol':
• J) in the description of "Beer.Cider.Perry,
• Mead.Opaque beer and mixtures of fermented beverages with non-alcoholic beverages and spirituous beveragesof alcoholic strength not exceeding 6%",by deleting the corresponding rate of excise duty and substituting therefor the rate of excise dutyshs.22.50 per centilitre ofpure alcohol":

• (K)in the deseription of"Spirits ofundenatured ethyl alcohol;spirits liqueurs andother spirituous beverages of alcoholic strength exceeding 6%" by deleting the correspondingrate of excise dutyand substituting therefor the rate of excise duty "shs.l6 per centilitre of pure alcohol":
• (L)in the description of"Cigarette with filters (hinge lid and soft cap)",by deleting the correspondingrate of Excise Duty and substituting therefor the rate of Excise Duty "Shs.4,100 per mille;
• M)in the description "Cigarettes without filters (plain cigarettes)". by deletingthe corresponding rate of excise dutyand substituting therefor the rate of excise duty "shs.4,100per mille";
• (N)in the description of "Products containing nicotine or nicotine substitutes intended for inhalationwithoutcombustion or oral application butexcludingmedicinal products approved by theCabinet Secretary responsible for matters relating to health and other manufactured tobacco and manufactured tobacco substitutes that have been homogenized and reconstituted tobacco,tobaceo extracts and essences",by deleting the corresponding rate of excise duty and substituting therefor the rate of excise duty"shs.2,000perkg";
• (O)in the description of "Liquidnicotine for electroniccigarettes",bydeleting the correspondingrateof excise duty and substituting therefor therate ofexcise duty "shs.100 permillilitre
• (P)by inserting the following new description andcorresponding rateofexcise duty at the
• end thereof-

Description

Coal Rate ofExciseDuty

5%of the value or KSh.27.000 per

metric ton whichever ishigher

Vegetableoilsoftariffcodes25% 1511,1512.1515and1517.

• (Q)in the third table of paragraph 1ofPart I,by deleting the words"Imported Emulsion-styrene Acrylic"appearing in the second column and substituting therefor the words
• "Styrene-acrylonitrile(SAN) copolymers";
• (i)by deleting paragraph 2;

(b)inPart II-

• in paragraph 1,by deleting the words"fifteen percent"and substitutingtherefor the words"twenty percent;
• in paragraph 2.by deleting the words"fifteen percent"and substituting therefor the words"twenty percent";
• (ii)in paragraph 3,by deleting the words"fifteen percentand
• substituting therefor the words"twenty percent";
• (iv) inparagraph 4A,by deleling the words"twelve-point five percent"and substituting therefor thewords "twenty percent";
• in paragraph 4B,by deleting the words "twelve-point five percent"and substituting therefor thewords "twenty percent':
• (vi)in paragraph 4C,by deleting the words"twelve-point five percent" and substituting therefor thewords "twenty percent":
• (vi)in paragraph 4D,by deleting the words"twelve-point five percent"and substituting therefor the words "twenty percent";
• (vi) in paragraph 8,by inserting the words"the internet, social
• media"immediately after the words"advertisement on"
• 43.The Second Schedule to the Excise Duty Act is amendedinPartA-
• (a)in paragraph 1l.by inserting the words"National Intelligence Serviceimmediately after the words "Kenya Defence Forces";

Amendment of the Second Scheduleto Cap.472.

• (b)in paragraph 16.by inserting the following new definition-

"original a

equipment manufaeturer" means manufacturer of parts and subassemblies who owns the intellectual propertyrightsin theparts or subassemblies.

PARTV-MISCELLANEOUSFEESAND

LEVIES

• 44.The MiscellaneousFeesand LeviesActis amended in section7
• (a)by deleting the words"two point five"appearing in subsection(2)and substituting therefor the word "three";
• (b)by deleting subsection(7)and substituting therefor thefollowingnew sub-section-
• (7)Ten percent of monies in the Fund under subsection (6)shall be used for the payment of Kenya's contributions to the African Union and any other international organisationtowhich Kenya has a financial obligation,while twenty percent will be used for revenue enforcement initiatives orprogrammes.
• 45.The Miscellaneous Fees and Levies Actis section
• amended by inserting the following new immediately after section 7A-

Eeolevy

• 7B.(1)There shall bepaid a levy tobe knownas theecolevyonthegoods specified in theFourth Schedule manufactured in Kenya or imported into Kenya.
• (2)The eco levy shall be paid to the Commissioner at therate specified in the
• Fourth Schedule-
• (a)in thecase of locally manufactured goods,by the manufacturer at the time the goods are removed from the excise stockroom:and
• (b)in the case of imported goods,by
• the importer at the time of entering the goods into the country.

Amendment of section7of Cap.469C.

Insertion of new section7Bin Cap.469C

• (3)Thepurpose of the levy shall be to
• ensure that the manufacturers and importers ofthe goods specified inthe Fourth Schedulepay for the negative environmental impacts of thegoods.
• (4)The Cabinet Secretary may make
• Regulations for the better implementation of the provisions of this section.
• 46.The Second Schedule to the Miscellaneous Fees and Levies Actis amended-
• (a)in PartA-
• (i)in paragraph (xxv),by inserting the words
• "National Intelligence Service"immediately after the words"Kenya Defence Forces";
• (ii)by inserting the following new paragraph immediately after paragraph(xxx)-
• (xxxi) inputs,raw materials and machinery used in the manufacture ofmosquito repellent on recommendation by the CabinetSecretary responsiblefor
• mattersrelating to health;
• (b)in Part B-
• (i)in paragraph (ix),by insertingthe words "National Intelligence Service"immediately after the words"KenyaDefence Forces":
• (ii)by inserting the following new paragraph immediately afterparagraph(xvi)-
• (xvii) inputs,raw materials and machinery
• used in the manufacture ofmosquito repellents on recommendation by the Cabinet Secretary responsible for mattersrelatingtohealth.
• 47.The Miscellaneous Fees and Levies Act is amended by deleting the Third Schedule and substituting
• therefor thefollowingnew Schedule-

Amendment of the Second Schedule to Cap.469C.

Amendment of the Third Schedule to

Cap.469C.

THIRDSCHEDULE

(s.7A(1).(2))

GOODSSUBJECT TOEXPORTANDINVESTMENT PROMOTIONLEVY

• 1.Articlesofleatherof Chapter 42,20%ofcustoms
• value.
• 2.Imported footwear of Chapter64.20%of the
• customs value.

Tariff No. Tariff descriptionExport and investment promotionlevy rate

2207.20.00 Denatured ethyl 3%of the customs value alcohol and other spirits

2208.40.00 Rum and other 3%ofthecustomsvalue spirits obtained by distilling fermented

sugar

2208.60.00 Vodka 3%of the customs value

2523.10.00 Cement clinker 10%ofthecustomsvalue

3401.30.00 Organic surface3%of the customsvalue active products and preparations for washing

the skin.

4804.11.00 Kraft liner

3%of the customsvalue

4804.29.00 Uncoated kraft 3%of the customs value paper and paperboard,in rolls or sheets, other than thatof heading48.02or 48.03-Other

0401.20.00 Milkand creamof3%ofthecustomsvalue a fat content by weight,exceeding 1%but not exceeding6%

| Tariff No. | Tariff descriptionE | Export andinvestment promotionlevy rate | |--------------|-----------------------------------------------------------------------------------------------------------------------------|-------------------------------------------| | 69.10 | Ceramic sinks, wash basins, pedestals,baths, bidet,water closet pans,flushing cistern,urinals and similar sanitary fixtures | 3%of the customs value | | 7207.11.00 | Billets | 10%ofthecustomsvalue | | 7321.12.00 | liquidfuel | Cooking stovesfor3%of the customs value | | 8711.10.90 | internal combustion engine notexceeding50cc | Motorcycles with3%of thecustomsvalue | | 8711.20.10 | internal combustion engine exceeding50ccbut notexceeding 250cc | Motorcycleswith3%of thecustomsvalue | | 8711.20.90 | internal combustion engine exceeding50ccbut nitexceeding 250cc | Motorcycleswith3%ofthe customsvalue | | 8711.30.90 | intermal combustion engine exceeding250cc but not exceeding 500cc | Motorcycles with3%of the customs value | | 8711.40.90 | internal combustion engine exceeding500cc but not exceeding 800cc | Motorcycleswith3%of thecustomsvalue |

Tariff No. TariffdescriptionExport and investment promotionlevyrate

8711.50.90 Motorcycles with 3%of the customs value internal combustion engine exceeding 800cc

8711.60.00 Electric motorcycles

3%of the customs value

9403.10.00 Metal furmitureofa3%of the customsvalue kind used in offices

9403.20.00 Other metal 3%of the customs value furniture

9403.30.00 Wooden furniture3%ofthe customs value

foroffice

9403.40.00 Woodenfurniture3%of the customsvalue forkitchen

Wooden furniture3%of the customsvalue

9403.50.00 forbedrooms

9403.60.00 Otherwooden 3%of thecustoms value furniture

9403.70.00 Furniture of plastics

9403.82.00 Furniture of bamboo

3%of the customsvalue

3%of thecustoms value

9403.83.00 Furniture ofrattan 3%of the customs value

9403.89.00

Furniture ofcane,3% of the customs value osier or similar material

9403.91.00

9403.99.00

9404.10.00

Parts of furniture,3%of the customsvalue ofwood

Parts of furniture,3%of the customs value notofwood

Mattress supports3%of the customs value

• 48.The Miscellaneous Fees and Levies Act is amended by inserting the following new Schedule immediately after the Third Schedule-

lnsertion of new FourthSchedule to Cap.469C

FOURTHSCHEDULE

(s.7B(2))

GOODSSUBJECTTOECOLEVY

Deseription

• Other office machines (for example hectograph or stencil duplicating machines.addressing machines, automatic banknote dispensers,coinsorting machines.coin-counting or wrapping machines. pencilsharpening machines,perforating or stapling machines)-other.
• Calculating machines and pocketsize data recording,reproducing and displaying machines with calculating functions; accounting machines, postage-franking machines.ticketissuing machinesand similar machines.incorporating a calculating device: cash registers
• incorporating a printing device.
• Automatic data processing machines and units thereof;magnetic or optical readers.machines for transcribing dataonto datamedia in coded form and machines for processing such data.notelsewherespecified or included-Portable automatic data processing machines.weighing not more than lOkg.consisting ofat least a central processing unit,a keyboard
• and a display.
• Automatic data processing machines and units thereofmagnetic or optical readers,machines for transcribing data onto data media in coded form and machines for processing such data.not elsewhere specified or included-comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined
• Automatic data processing machines and units thereof:magnetic or optical
• readers,machines for transcribing

Tarif

EcoLevy

number

rate(Shs,)

8472.90.00

98perunit

8470.21.00 225perunit

8471.30.00

225perunit

8471.41.00 225per unit

8471.49.00

225perunit Description data onto data media in coded form and machines for processing such data,not elsewhere specified or included-other,presented in the form of systems.

• Automatic data processing machines and units thereof;magnetic or optical readers,machines for transcribing data onto data media in coded form and machines for processing such data,not elsewhere specifiedor included-processing units other
• than thoseof sub-heading8471.41 or

847149,whether or not containing in the same housing one or two of the following types of unit:storage

units,input units,output units

• Automatic data processing machines and units thereof;magnetic or optical readers.machines for transcribing data onto data media in coded form and machines for processing such data, notelsewhere specifiedor included-input or output units, whether or not containing storage
• units in the same housing.

8. Automatic data processing machines and units thereof;magnetie or optical readers,machines for transcribing data onto data media in coded form and machines for processing such data,notelsewhere specifiedor included-otherunitsofautomatic

• data processing machines.
• Automatic data processing machines and units thereof;magnetic or optical readers,machinesfor transcribing data onto data media in coded form and machinesfor processing such data,not elsewhere specified or included-other.
• hectograph or stencil duplicating machines,addressing automatic banknote dispensers,coin-

Tariff number

EcoLevy rate(Shs.)

8471.50.00 225per unit

8471.60.00 225perunit

8471.80.00 225perunit

8471.90.00 225perunit

8472.90.00 225perunit

• 10.Other office machines (for example, machines,

Description

sorting machines,coin-counting or wrapping machines, pencilsharpening machines,perforating or stapling machines)-other.

• arts andaccessories.(otherthan
• covers,carrying cases and the like) suitable for use solely or principally with machines of headings 84.70 to 84.72Partsand accessoriesof automatic data processing machines andunitsthereof parts and accessoriesofthemachinesof heading 84.71.
• sets, including smartphones and other telephones. including telephones for cellular networks orforotherwireless networks:other apparatus for the transmission or reception of voice. images or other data,including apparatus for communication in a wired or wireless network (such as a local or wide area network),other thantransmissionor reception apparatus ofheading 84.43.85.25. 85.27or85.28-linetelephone sels
• 12.Telephone with cordless handsets.
• 13.Telephone sets. including smartphones and other telephones. including telephones for cellular networksor for other wireless networks: other apparatus for the transmission or reception of voice imagesor other data.including apparatus for commnication in a wired or wireless network(such as a local or wide area network).other thantransmissionorreception apparatus of heading 84.43,85.25 85.27or85.28-smartphones.
• 14.Telephone sets, including smartphones and other telephones. including telephones for cellular networks or forother wireless networks: other apparatus for the transmission or reception of voice,

Tariff number

EcoLevy rate(Shs.)

8473.30.00 98perunit

8517.11.00225PerUnit

8517.13.00 225 perunit

8517,14.00 225per unit Description images or other data,including apparatus for communication in a wired or wireless network (such as a local or wide area network),other than transmission orreception apparatus of heading84.43.85.25. 85.27or85.28-Other telephones for cellular networks or for other wireless networks.

• 15.Telephone including
• sets, smartphones and other telephones. including telephones for cellular networksor for otherwireless networks:other apparatus for the transmission or reception of voice. images or other data,including apparatus for communication in a wired or wireless network(such as a local or wide area network),other than transmissionorreception apparatus of heading 84.43.85.25. 85.27or85.28-other
• 16.Telephone sets, including smartphones and other telephones, including telephones for cellular networks or for other wireless networks:other apparatus for the transmission or reception of voice, images or other data,including apparatus for communication in a wired or wireless network (such as a local or wide area network).other thantransmissionorreception apparatus of heading 84.43,85.25, 85.27or85.28-other apparatus for transmission or reception of voice. images or other data,including apparatus for communication in a wired or wireless network(such as a local or wide area network):base stations.
• 17.Telephone sets, including smartphones and other telephones, including telephones for cellular networks or for other wireless networks;other apparatus for the transmission or reception of voice.

Tariff number

Eco Levy rate(Shs.)

8517.18.00 225per unit

8517.61.00 225per unit

8517.62.00 225perunit Description images or other data.including apparatus for communication in a wired or wireless network (such as a local or wide area network).other than transmission orreception apparatus of heading 84.43,85.25. 85.27or85.28-other apparatus for transmission or reception of voice. wired or wirelessnetwork (such asa images or other data,including apparatus for communication in a local or wide area network):base stations:machines for the reception. conversion and transmissionor regeneration ofvoice,images or other data,including switching and routing apparatus.

• 18.Telephone sets, ineluding smartphones and other telephones. including telephones for cellular networksorfor otherwireless networks,other apparatus for the transmission or reception of voice, images or other data,including apparatus for communication in a wired or wirelessnetwork(such asa localor wide area network),other than' transmissionorreception apparatus of heading 84.43,85.25 85.27or 85.28-other apparatus for transmission or reception of voice, images or otherdata,including apparatus for communication in a wired or wireless network(such as a local or wide area network):base stations:other.
• 19.Microphones and stands therefor. 1010 headphones and earphones whether
• loudspeakers, whether mounted in their enclosures; or not combined with a microphone. and sets consisting of a microphone and one or more loudspeakers: audio-frequency electrie amplifiers: electricsoundamplifiersets microphones and stands therefor

Tariff

EcoLevy rate(Shs.)

number

8517.69.00 225perunit

8518.10.00 98per unit Description

Tariff number

Eco Levy rate(Shs.)

• 20.Sound recording or reproducing 8519.81.00 98perunit
• apparatus-

magnetic. or

using optical semiconductormedia

• 21.Transmission apparatus for radio98perunit
• 8525.50.00 broadcasting or television.

whether or incorporating reeeption or sound recording or reproducing apparatus; television cameras,digital cameras and video camcra recorders transmission apparatus for radiobroadcasting or television.

• 22.Transmission apparatus for radio-
• broadcasting or television,whether ornotincorporatingreception apparatus or sound recording or reproducingapparatus,television cameras.digital cameras and video camera recorders transmission sneedde incorporatingreception apparatus:
• 23.Transmission apparatus for radiobroadcasting or television,whether 1ouJo incorporating reception apparatus or sound recordingor reproducingapparatus:television cameras,digital cameras and video camera recorders-high-speed goods as specified in Subheading Note 1to this Chapter.
• 24.Transmissionapparatus for radio-
• broadcasting or television.whether ornot incorporating reception apparatus or sound recording or reproducingapparatus;television cameras,digital cameras and video camera recorders Television cameras,digital cameras and video camera recorders:Other.radiationhardened or radiation-tolerant goods as specified in Subheading Note 2to this Chapter.

8525.60.00

98perunit

8525,81.00

98perunit

8525.82.00 98perunit

25.Transmission apparatus for radio8525.83.00 98per unit broadcasting or television, whetherornot incorporating reception apparatusor sound recording or reproducing apparatus: television cameras.

digital cameras and video camera

recorders television cameras, digital cameras and video camera recorders:other,night vision goods as specified in Subheading Note 3to this.Chapter.

• 26.Transmission apparatus for radio
• broadcasting or television.

whether or not incorporating reception apparatus or sound

recording or reproducing apparatus: television cameras,

digital cameras and video camera recorders television cameras, digital cameras and video camera recorders:other.

• 27:Radar apparatus,radio navigational 98perunit
• 8526:91.00 aid apparatus andradio

remote control apparatus-other: radio navigational aid apparatus.

• 28.Reception apparatus forradiobroadcasting, whether Or not combined,in the same housing,with sound recordingorreproducing apparatusoraclock radiobroadcast receivers capableof operating without an cxternal source ofpower:pocket-size radio cassette-
• players.
• 29.Reception apparatus for:radiobroadcasting,whetheror not combined,in the same housing,with sound recording orreproducing apparatus or aclock radiobroadcast receivers capableof operating without an external source ofpower:other apparatus combined with sound recording or reproducing smeredde

Tariff number

Eco:Levy rate (Shs.)

8525.89.00 98perunit

8527.12.00 225per unit

8527.13.00 225per unit Description

• 30.Reception apparatus
• forradiobroadcasting, whether or jou combined,in the same housing,with sound recordingor reproducing apparatusoraclock radiobroadcast receiverscapableof operating withoutanexternal source ofpower:other.
• 31.Receptionapparatus forradiobroadcasting.whether or jou combined,in the same housing,with soundrecording orreproducing apparatusoraclockradiobroadcast receivers not capable of operating without an external source ofpower.of a kind used in motor vehicles:combined with sound recording or reproducing apparatus.
• 32.Reception apparatus for radiobroadcasting. whether OT jou combined,in the same housing.with soundrecordingorreproducing apparatusoraclock radiobroadcast receivers not capable of operating without an external source ofpower,of a kind used in motor vehicles:other,
• 33.Reception apparatus forradiobroadcasting, whether combined,in the same housing,with sound recordingorreproducing apparatusoraclock other: combined with sound recording or
• reproducing apparatus.
• 34.Reception apparatus
• for broadcasting. whether Or combined.in the same housing.with sound recordingorreproducing apparatusoraclockother:not combined with sound recording or reproducing apparatus but combined with a clock.
• 35.Reception
• seredde forradiobroadcasting. whether 010 combined.in the same housing.with soundrecordingorreproducing apparatus or a clock-other:other.

Tariff number

EcoLevy rate(Shs.)

8527.19.00 225per unit

8527.21.00 225Per Unit

8527.29.00

225per unit

8527.91.00 225perunit

8527.92.00 225perunit

8527.99.00 225per unit

• 36.Monitors pue projectors, noL. incorporating televisionreception apparatus:reception apparatus for television, whether Or not incorporating radio-broadcast receivers or sound or video recording apparatus for television,whether or not incorporatingradio-broadcast receivers or sound orvideo recording orreproducingapparatus:not designed toincorporate avideo display or screen.
• 37.Monitors and projectors.not8528.72.10 incorporating televisionreception apparatus:reception apparatus for television, whether or not incorporating radio-broadcast receivers or soundor video recording or reproducing apparatus-reception apparatus for television,whether or not incorporating radio-broadcast receivers or sound or video recording colour,unassembled.

Tariff

Eco Levy rate(Shs.)

number

8528.71.00 1275perunit

1275per unit

• 38.Monitors and projectors, noL incorporating televisionreception television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus -reception apparatus for television,whether of not incorporating radio-broadcast receivers or soundorvideo recording or reproducing apparatus:other. monochrome:unassembled.
• 39.Monitors and projectors, not incorporatingtelevision reception apparatus:reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound orvideo recording or reproducing apparatus -reception apparatus for television.whether or not incorporating radio-broadcast

8528.73.10 1275per unit

8528.73.90 1275per unit

• receivers or sound or video recording

Description

orreproducingapparatus:other, monochrome.other.

• 40.Thermionic.cold cathode or photo-
• cathode valves and tubes (for cxample.vacuum or vapour or gas filled valves and tubes.mercury arc rectifying valves and tubes,cathoderay tubes,television camera tubes) cathode-ray television picture tubes, including video monitor cathode-ray tubes:colour.
• 41.Thermionic,cold cathode or photocathodevalvesandtubes(for cxample,vacuum or vapour or gas filled valves and tubes.mercury arc rectifying valves and tubes.cathoderay tubes.television camera tubes) cathode-ray television picture tubes, including video monitor cathode-ray
• tubes:monochrome.
• 42.Thermionic.cold cathode or photocathode valvesand tubes (for example,vacuum or vapour or gas filled valves and tubes,mercury arc rectifying valves and tubes,cathoderay tubes,television camera tubes)televisioncameratubes,image converter and other photocathode tubes.
• 43.Oscilloscopes,spectrum analysers and other instruments and apparatus for measuring or checking electrical quantities,excludingmetersof heading 90.28:instrumentsand apparatus for measuring or detecting alpha,beta,gamma,X-ray,cosmic or other ionising radiations-other instruments and apparatus,specially designedfor telecommunications (for example.cross-talk meters.gain measuringinstruments.distortion factor meters.psophometers)
• 44.Rubber tyresof Chapter 40
• 45.Diapers of Chapter96

Tarif number

Eco Levy rate(Shs.)

8540.11.00 1800perunit

8540.12.00 1800per unit

8540.20.00

1800 per unit

9030.40.00 98perunit

1000perunit

150 perkg

Tariff

EcoLevy rate(Shs.)

mmber

• 46.Batteries or dry cells of Chapter 85

750perkg

• 47.Plastic packingmaterials of Chapter 39

150per kg

PARTVI-TAXPROCEDURES

• 49.Section 19 ofthe Tax Procedures Act is amended
• in subsection (3).by inserting thewords "established by Regulations prescribed under this Actimmediately after the words"Tax Agents Committee"
• 50.Section 22of the Tax ProceduresAct is amended recommendation oftheTax Agents Committeeestablished byRegulations prescribed under this Actimmediately after the wordsCommissioner shallappearing in the opening sentence.
• 51.Section 23A ofthe TaxProceduresAct is amended
• byinserting the following new subsection immediately after subsection(2)-
• (2A)An electronic tax invoice issued under subsection (2)shallcontain thefollowing
• information-
• (a)thewords"TAXINVOICE";
• (b)the name.address and PIN of the supplier:
• (c) the name,address and PIN if any.of the purchaser;
• (d)the serial number ofthe tax invoice;
• (e)the date and time which the tax invoice was issued and the date and time which the supply was made, ifitis different from the datethe tax invoicewas issued,
• f)the descriptionof the supply including quantity of thegoods orthetype ofservices:
• (g)the details of any discount allowed at the time of
• supply:
• (h)the consideration for the supply:
• (i)the tax rate charged and total tax amount oftax charged;and
• )any other prescribed information

Amendment of section 19of Cap

469B

Amendment of section 22of Cap. 469B

Amendment-of section 23Aof Cap.469B.

• 52.The Tax Procedure Aet is amended by inserting the followingnew sectionimmediately after section 37D-

37E (1)This section applies where the

Relief because of doubt or difficultyin Commissioner determinesthatrecovery of tax.

• (a)it may be impossible to recover an unpaid tax:
• (b)there is undue difficulty or expense in therecovery of anunpaid tax:
• (c)there is hardship or inequity in relation tothe recovery of an
• unpaid tax:or
• (d)there isany other
• reason occasioninginability to recover the unpaid tax.
• 2)Despite theprovision of any tax law.the Commissioner may,with the prior written approval of the Cabinet Secretary. refrain from assessing or recovering an unpaid taxand theliability in relation tothe tax shall be deemed to be extinguished or the tax shall bedeemed to beabandoned or remitted,as the case may be.
• (3)In any case referred to the Cabinet Secretaryunder subsection (I)andwhere appropriate,the Cabinet Secretary may
• direct the Commissioner in writing
• (a) to take such action as the Cabinet Secretary may deem fit:or
• (b)to obtain the directions of the court
• in relation to the case.
• (4)The Commissioner shall submit a report to the Cabinet Secretaryon orbefore the 30th June and on or before the 3lst December of each year containing the details and amounts of taxes abandoned under thissection.
• (5)The Cabinet Secretary shall submit tothe National Assembly the report under subsection on or before 30March of the
• succeedingyear.

Insertion of new

seetion into Cap.469B

53.Section 42of theTax Procedures Act is Amendmemot amendedsection42of Cap.

• newsubsection
• (a)by insertingthefollowing immediatelyafter subsection (2)
• (2A)Subject tosubsection (7),the notice issued under subsection (2)shall be valid for a periodofoneyear.
• (b)in subsection (13),by deleting the words"taxpayer who without reasonable causefails tocomplywith anoticeandsubstitutingtherefor thewords 'person who without reasonable cause fails to
• comply with a noticeissued under subsection(2)
• (c)in subsection (14),by deleting paragraph (e).
• amended
• 54.Section42Aof theTax Procedures Act is
• (a)in subsection (I),by deleting the proviso;
• (b)by deleting subsection (4C)andsubstituting therefor the following subsection-
• (4C)Aperson who is required under this section to withhold tax,and without reasonable
• cause-
• (a)fails to withhold the whole amount of the tax which should havebeen withheld;or
• (b)fails to remit the amount of the withheld tax to the Commissioner by the fifth working day
• after the deduction was made,

shall beliable to a penalty of ten per cent of the amountnotwithheldorremitted.

• (c)by deleting subsection (4D).
• 55.Section 47 of the Tax Procedures Act is amended by deleting subsection (l)and substituting therefor the followingnew subsection-
• (1)Where a taxpayer hasoverpaid a taxunder any tax law,the taxpayer may apply to the Commissionerin theprescribed form to offsetthe overpaid tax against the taxpayer's outstanding tax debts and future tax liabilities;or for a refund of the overpaid tax-

469B.

Amendmentof section 42Aof Cap.469B.

Amendment of

section47of Cap. 469B

• (a)in the case of income tax,within five years from the date on which the tax was overpaid:or
• (b)in the case of any other tax,within six months from the date on which the taxwasoverpaid.
• 56.Section5loftheTaxProceduresActis amended--
• (a)in subsection (4A).by deleting the wordsthe Commissioner may make an objection decision within sixty daysafter the date onwhich the notice ofobjection waslodgedand substituting therefor the new words "the objection shall be deemed disallowed":
• (b)in subsection (l1).by deleting the words"sixty daysand substituting therefor the words"ninety days".
• 57.Section 59Aof the Tax Procedures Actis
• amended-
• (a)byinserting thefollowingnewsubsection
• immediatelyafter subsection (1)
• (1A) The Commissioner may,by notice in writing.reqaire a person to integrate the electronic tax system authorised under section 75.to the system referred in subsection (I) for the purposes ofsubmission of electronic documents including detailed transactionai data in a prescribed manner
• (b)byinserting the followingnewsubsections
• immediately after subsection(4)
• (5)A person who fails to comply with the notice beliable,on conviction,to a penalty not exceeding two million shillings for every month or part thereof that the failure continues.
• (6)A person who fails to comply with the notice referred to in subsection (2)commits an offence and shall be liable,on conviction,to a penalty not exceeding two million shillings for every month or part thereof that he failure continues.
• 58.The Tax Procedures Act is amended by repealing section 77 and replacingitwith the following newsection immediatelysection77

Amendmentof section 5lof Cap. 469B.

Ameidmentof section S9Aof Cap.469B

Repealand replacementof section77 to Cap 469B

Computoton-of time.

• 77.In computing theperiod for-
• (a)submitting or lodging a tax return, application. notice, or other document:
• (b) the payment of a tax,or
• (c)taking any other action under a tax
• law,

the period shall not include Saturdays,

Sundays orpublic holidays.

• 59.Section S3ofthe Tax ProceduresActis amended-
• (a)by deleting the marginal note and substituting thereforthefollowingnewmarginal note-
• "Penalties for late submission and failure to submit
• returns.":
• (b)byinsertingthefollowingnewsubsection
• immediately after subsection (l)-
• (1A) An export processing zone enterprise that fails to submit a return asrequiredunderparagraph shall be liable toa penalty oftwenty thousand shillingsper month for each month orpart thereof
• 4of theEleventhSchedule totheIncome Tax Act that the failure continues.
• 60.The First Schedule to the Tax Procedures Act is amendedbyinserting the followingnewparagraph immediatelyafterparagraph15
• (16)Registration ofanemployeeworking remotely outsideKenya for an employer inKenya.

PARTVI-MISCELLANEOUS

• 61.The Affordable Housing Act is amended be deleting No.2of2024 seetion54.
• 62.Section 5Bof the Industrial Training Act is amended in subsection (2) by inserting the words",Tax Procedures Act(Cap.469B)"immediatelybefore the word "and"
• 63.Section 51(2)of theDataProtection Actisamended
• by inserting the followingnewparagraph immediately after paragraph (b)-

Cap.237

Amendmentof section52Cap 41IC.

Amendmentof section83of Cap. 469B.

Cap.470.

Amendment of the o

Cap.469B.

• (ba)disclosure is necessary for the assessment, enforcement or collection of any tax or duty undera written taxlaw.
• 64.Section 194 of the PublicFinance Management Act
• is amended-
• (a)in subsection (l) by inserting the following new
• paragraph immediately after paragraph(g)-
• (h)prescribe a framework for implementation of accrual accountingin Government;and
• ()prescribeariskmanagement framework
• (b)byinserting thefollowing new subsection
• immediately after subsection(5)
• (6)Withoutprejudice tothe generalityof subsection (1)(h).the frameworkfor providefora three-yeartransitionperiod from the
• implementationofaccrualaccountingshall date of commencementof this Act.
• 65.The First Scheduleto the Kenya Revenue
• Authority Act is amended in Part II by deletingparagraph 4

Amendmenr of

Cap.412A

Amendment of the First Schedule to Cap.469.

MEMORANDUM OFOBJECTSANDREASONS

This Bill has been submitted by the Cabinet Secretary for the

National Treasury and Economic Planning and formulates proposals relating to revenue raising measures including liability to,and collection oftaxes.

The Bill amends the Income Tax Act (Cap.470),the Value Added

Tax Act (Cap.476).the Excise Duty Act(Cap.472).The Tax Procedures Act(Cap.469B)and the MiscellaneousFees and LeviesAct (Cap.469C)

The Bill also amends other pieces of legislation relating to fees, levies and management ofpublic fundsasset outbelow:

The Affordable Housing Act (No.4of 2024)

The Bill also amends section 54 of the Affordable Housing Act,to

clean up the provision following the advisory given by the Attorney General.

The Industrial TrainingAct (Cap.237)

The Bill amends the Industrial Training Act to extend the provisions of the TaxProcedures Act,regarding collection of the traininglevy

The Data Protection Act (Cap4l1C)

The Bill also seeks to amend section 51 of the Data Protection Act (Cap.41lC)to provide for theexemption of the processing ofpersonal data thatrelates to the assessment,enforcement or collection of any tax or duty from theprovisions of theDataProtectionAct.

The PublicFinance Management Act (Cap.412)

The Bill amends the Public Finance Management Act to make

provision forimplementation of accrual accountingin Government.

TheKenya Revenue Authority Act (Cap.469)

The Bill further proposes to amend the First Schedule to theKenya

Revenue Authority Act to remove the mandate of collectingchargesand fees payable under the Civil Aviation Act from the Kenya Revenue Authority following the transfer ofthe same to theKenya Civil Aviation Authority.

Datedthe9thMay.2024.

KURIAKIMANI

Chairperson, Departmental CommitteeonFinanceandNational Planning.

Section2ofCap.470it isproposed toamend

"digitalcontentmonetisationmeansofferingforpayment entertainment,social,literal.artistic,educational or any other material electronically through any medium or channel.in any ofthe following forms-

• (a)advertisement on websites,social media platforms or similar networksby partneringwith brandsincluding endorsements from sellers ofsuch brands:
• (b)sponsorship where a brand owner pays a content creator for contentcreation-andpromotion:
• (c)affiliate marketing where the content creator earns.a commission whenever the audience of the contentcreator clicks on the product displayed:
• (d)subscription services where the audience paysa periodic fee to access the content and support the content creator,
• (e)offering for use a logo.brand or catchphrase associated with the content creator merchandise saleseBooks.course or software:
• (membership programmes for exclusive content including early
• access:
• (g)lieensing.the content including photographs,music or other businesses or individuals for use in the user's own projeetsor
• (h)a content creator earns a commission or fees from crowd funding.

individual retirement fundmeans a fund held in trust by a qualified institution for aresident individual for the purpose of receiving and investing funds in qualifying assets in order to provide pension benefits forsuch an individual or the surviving dependants of such an individual subject to the Income Tax (Retirement Benefit)Rules and registered individual retirement fundmeans an individual retirement fund wherethe trust deed forsucha fund hasbeenregistered withthe Commissioner;

"pension fundmeans any fund for the payment ofpensions or other similar benefits toemployees on retirement,or to the dependants of employees on the death of such employees and"registered pension fund" means one which has been registered with the Commissioner in such mannerasmaybeprescribed;

"provident fund"ineludes any fund or scheme for the payment of lump sums and other similar benefits,to employees when they leave employment orto the dependants of employeeson thedeathof those employees but does not include any nationalprovident fund or national socialsecurityfund established bythe Government andregistered provident fund"means one which has been registered withthe Commissioner in such manner asmay beprescribed,

"wife'semploymentincome" meansgainsorprofitsfrom employmentarising froma contract ofservice which is chargeableto tax under section 3(2)(a)(ii)and pensions,lump sums and withdrawals from a registered fund,publicpension scheme orregistered individual retirement fund which are chargeable to tax under section3(2)(c),of a woman living with her husband,exceptingincome derived byher as a trustee or manager ofa settlement created by her husband the income ofwhich is deemed under section25or26 tobe theincomeof thesettleror incomederivedby herasanemployeeof-

• (a)a partnership in which her husband is a partner;
• (b)her husband;or
• (c)a company,the voting power ofwhich isheld to the extent of ofincome by her or by her husband or by both jointly,either directlyor through nominees:

"wife's professional income"means the gains or profits of a married

womanlivingwith herhusband derived from theexercisebyher(but not asapartner ofapartnershipinwhich herhusband isa partner)ofoneof theprofessionsspecified intheFifthSchedulebeing also apersonwhohas the qualifications specified in thatSchedulerelevant to thatprofession;

wife's professional income rate"means thewife's professional incomerate specified inparagraph lA of Head Bof theThirdSchedule;

"wife's self-employment income"means gains or profits arising from abusiness of amarriedwoman living withher husband which are under section 3(2)(a)(ii)or section 3(2)(b),but does not include any income derived fromthe provision ofgoods or servicesby her toa business,partnership or a company owned by or the voting power of which is held to the extent of twelve and one-half per cent,or more at any onetimeduringtheyearofincomebyherorherhusband eitherdirectly or through nominee;

"wife's self-employment income rate"means the wife's self-

employmentincomeratespecified inparagraph 1AofHeadBoftheThird Schedule:

"related personmeans,in the case of two persons where a person who participates directly or indirectly in the management,control or capital of the business of another person;

• "royalty"means a payment made as a consideration for the use of or theright touse-
• (a)any copyright of a literary,artistic or scientific work;or
• (b)any cinematograph film,including film or tape for radio or television broadcasting;or
• (c)any patent,trademark,design or model,plan,formula or process;
• or
• (d)any industrial,commercial or scientific equipment,or for information concerning industrial,commercial or scientific equipment or experience,and any gains derived from the sale or exchange of anyright orpropertygivingrise to thatroyalty;

Section3ofCap470itisproposed toamend-

• 3.(3)For the purposes of this section-
• (b)a bonus or interest paid by a designated cooperative society,as defined undersection 19A,shall be deemed tobea dividend
• (ba)"digital marketplace"means an online or electronicplatform which enables users to sell or provide services,goods or other property to otherusers;
• (c)for thepurposesofsubsection(2)(g)and section 15(5A)-
• "immovable property"means a mining right,an interest in a petroleum agreement,mining information or petroleum
• information:
• of the interest;and
• (ii)the terms"consideration","cost","disposal"."interest in a person","mining information","miningright","person" 'petroleum agreement",and"petroleum information"have the meaning assigned to them in the Ninth Schedule.

Section4AofCap470,itisproposed toamend-

Income from businesses where foreign exchange loss or gain is

realized

• (1)A foreign exchange gain or loss realized on or after IstJanuary,
• 1989 ina business carried on in Kenya shall be taken into account as a trading receipt or deductible expenses in computing the gains and profits of that business for the year of income in which that gain or loss was realized:

Providedthat-

• (i)no foreign exchange gain or loss shall be taken into account to the extent that taking that foreign exchangegain or lossintoaccount would duplicatethe amounts ofgain or lossaccrued in any prior yearofincome;and
• (ii)the foreign exchange loss shall be deferred (and not taken into
• account)-
• (a)wherea foreign exchange loss isrealized bya companywhose gross interest paid or payable to related personsand third parties exceeds thirty per cent of the company's earnings before interest,taxes,depreciation and amortization in any
• financialyear,or
• (b)to the extent of any foreign exchange gain that would be realized if all foreign currency assets and liabilities of the business were disposedofor satisfied on the last day of the year of income and any foreign exchange loss so deferred shall be deemed realized in the next succeeding year of income.
• (lA)For the avoidance ofdoubt accumulated losses shall be taken intoaccountin computing theamount ofrevenuereserves.
• (2)The amount of foreign exchangegain or loss shall be calculated in accordance with the difference between (a times rl) and (a times r2) where-
• "a"is the amount of foreign currency received,paid or otherwise
• computedwith respect toa foreign currency assetor liability in the transaction in which the foreign exchange gain or loss is realized;rl is the applicable rate ofexchange for that foreign currency ("a")at the date of the transaction in which the foreign exchangegain or loss isrealized;
• r2is the applicable rate of exchange for that foreign currency (a")at the date on which the foreign currency asset orliability was obtained or established or on the 30th December,1988,whichever dateisthelater.

• (3)For the purposes of this section,no foreign exchange loss shall be deemed to be realizedwherea foreign currency asset orliability is disposed ofor satisfied andwithin aperiodof sixty daysa substantially similarforeign currency assetorliabilityisobtainedor established.
• (4)For thepurposesof thissection-

"control"deleted byAct No.8of2021,s.4:

"company" doesnot include a bank or a financial institution licensed under the Banking Act (Cap.488),or non-deposit taking microfinance businesses under the Microfinance Act (Cap.493C),entities licensed under the Hire Purchase Act(Cap.507)and persons exempt under section 16(2)(i);

"all loans"shall have the meaning assigned in section 16(3);

"foreign currency asset or liability" means an asset or liability denominated in,or the amount of which is otherwise determined by reference to,a currency other than theKenya Shilling.

Section5ofCap.470itisproposedtoamend-

• 5.Incomefrom employment,etc.
• (1)For thepurposes of section 3(2)(a)(ii) of this Act,an amount paid to-
• (a)a person who is,or was at thetime of the employment or when the employment or servicesrendered by him in Kenya or outside Kenya;or
• (b)a non-resident person in respect of any employment withor servicesrendered to an employer who isresidentinKenya or the permanent establishment inKenya of an employerwho is not so resident.shall be deemed to have accrued in or to have been derivedfromKenya.
• (2)For the purposesof section 3(2)(a)(ii)gains or profits"
• includes-
• (a)any wages,salary,leave pay,sick pay,payment in lieu of leave, fees,commission,bonus,gratuity.or subsistence,travelling entertainmentorotherallowance receivedin respectof employment orservicesrendered,andany amount soreceived in respectofemploymentorservicesrendered in ayear ofincome other than the year of income in which it is received shall be deemed tobeincomein respect ofthatotheryearofincome:

Provided that-

• (i)where any such amount is received in respect of a year of incomewhich expired earlier than fouryearsprior to theyear ofincome in which it was received,or prior to the year of income in which the employment or services ceased,if earlier,it shall bedeemed tobeincomeoftheyear ofincome which expired fiveyearspriorto theyear ofincome in which it was received,or prior to the year ofincome in which the employment orservices ceased as the case may be;and
• (ii)where the Commissioner is satisfied that subsistence, travelling,entertainment or other allowance represents solely thereimbursementto therecipientofan amount expended by him wholly and exclusively in the production ofhis income from the employment or services rendered then the calculation of the gains or profits of the recipient shall excludethatallowance orexpenditure;and
• (ii)notwithstanding the provisions of subparagraph (i),where such amount is received by an employee as payment of subsistence,travelling,entertainment or other allowance,in respect ofaperiod spentoutsidehisusual place ofworkwhile on official duties,the first two thousand shillings per day expended by him for the duration of that period shall be deemed to be reimbursement of the amount so expended and shall beexcluded in the calculation of hisgains orprofits;
• (b)save as otherwiseexpressly provided in thissection,thevalue ofa benefit,advantage,orfacility of whatsoevernature the aggregate valuewhereofisnot lessthan thirty six thousand shillingsgranted inrespect ofemploymentorservicesrendered;
• (c)an amountpaid by the employer as a contribution to a pension fund,ora registeredprovident fund or scheme:

Provided that-

• where the contract is for a specified term,any amount received as compensation on the termination of the contract shall be deemed to have accrued evenly over theunexpired period of the contract;
• (ii)where the contract isfor an unspecified term andprovides for compensation on the termination thereof,the compensation shall be deemed to have accrued in theperiod immediately following the termination atarate equal to therate per

annum of the gains or profits from the contract received

immediatelypriortotermination;

• (ii)where the contract is for an unspecified term and does not
• provide for compensation on the termination thereof,any compensationpaid onthetermination ofthe contractshall be deemed tohave accrued evenlyinthe threeyears immediatelyfollowingsuchtermination:
• (d)any balancing charge underPart II of the Second Schedule:
• (e)thevalueofpremisesprovided by an employer foroccupation by his employeeforresidential purposes;
• fan amountpaid byanemployerasapremium foran insurance on the lifeofhis employee and forthe benefitof that employee or any of hisdependants:

Provided that this paragraph shall not apply where such an amount

ispaid-

• (i)to a registered or unregistered pension scheme,pension fund,
• orindividual retirement fund:or
• (ii)for group life policy cover,unless such a cover confers a
• benefit to the employee or any ofhisdependants.

(2A)(a)Where an individualisa directororanemployee or isarelative ofa director oran employee and hasreceived a loan includingaloanfrom an unregistered pension or provident fund byvirtue ofhis position asa director orhis employment,or theperson to whom heis related,he shall be deemed to have received a benefitinthat year ofincome equal tothe greater of

thedifferencebetweenthe interest that would have been

payableon

the loan received if calculated attheprescribed rate of interest and

the actual interest paid on theloan;and zero:

Provided that where the term of the loan extends for aperiod beyond the dateof termination ofemployment,theprovisions ofthis subsection shall continue to apply for aslongas the loan remainsunpaid.

• (b)For thepurposes of this subsection-

"eployeemeans any person who is not a beneficial owner of or ableeither directly or indireetly or thtough the medium of other companiesorby any othefmeans to control more than fiveper centof the share capital orvotingpowerof thatcompany;

"market lending rates"means the average 91-day treasury bill rate of interest for theprevious quarter,

prescrlbed rate of interestmeans the following:

• (1)in the year of income commencing on the 1st January.1990,6
• percent;
• (ii) in theyear of income eommencing on the 1st January,1991,8 per cent;
• (il) in theyear of income commencing on the1stJanuary,1992,10 percent:
• (iv) In theyear of income commencing on the 1st January,1993,12 per cent;
• in theyear of income eommencing on the 1st January,1994,15 per cent;and
• (vi) in theyear of income commencing on or after the lst January 1995,15% or such interest rate based on the market lending rates as the Commissioner may from time to timeprescribe,to cover a period of not less than six months but notmore than oneyear,whichever is thelower.

"relative of a director oranemployee"meanis-

• (i)his spouse;
• (ii) his son,daughter,brother,sister,uncle,aunt,nephew,niece, stepfather,step-mother,step-child,orin the case of an adopted
• child his adopter oradopters,or
• (il) the spouse of any suchrelative as is mentioned in subparagraph
• (i),
• (2B)Where an employee is provided with a motor vehicle by his employer,he shall be deemed to have received a benefit in that year of incomeequal to thehigher of-
• (a) such value as the Commissioner may.from time to time,
• determine;and
• (b)the prescribed rate of benefit:

Provided that-

• (i)where such vehicle is hired or leased from a third party,the employee shall be deemed to havereceived a benefitin that yearof income equal tothecost ofhiringor leasing;or
• (ii)where an employee hasrestricted use of such motor vehicle the Commissioner shall,if satisfied ofthat factuponproof by the employee,determine a lowerrate ofbenefit depending on theusage of the motor vehicle.
• (2C)For the purposes ofsubsection(2B)-

"prescribed rate of benefit"means the following rates in respect of eachmonth-

• (a)in the 1996 year ofincome,1%of theinitialcapitalexpenditure on thevehicleby the employer;
• (b)in the1997year of income,1.5%of theinitial capital expenditure on the vehicleby the employer;and
• (c)in1998and subsequentyears ofincome,2%oftheinitial expenditure on thevehicleby the employer.
• (3)For the purposes of subsection (2)(e),the value of premises, excluding the value ofany furniture orother contents soprovided,shall be deemed tobe-
• (a)in the case of a director ofa company,other than a whole time service director,an amount equal to the higher of fifteen per centum ofhistotal incomeexcluding thevalue of thosepremises and income which ischargeable under section 3(2)(f),themarket rentalvalue and therentpaid by the employer;
• (b)in the case ofa whole time service director,an amount equal to the higher of fifteen per centum of the gains or profits from his employment,excluding the value of those premises,and income which is chargeable under section 3(2)(f),the market rentalvalue and therentpaidbytheemployer;
• (c)in the case ofan agriculturalemployeerequired by the terms of employment toresideonaplantation orfarm,an amountequal to tenpercentum of thegainsorprofits from hisemployment:

Provided that for thepurposesof thisparagraph-

• (i)"plantation"shall not include a forest or timber plantation;and
• (ii)"agricultural employee"shall not include a director other than a whole time service director:

• (d)in the case of any other employee,an amount equal to fifteen per centum of the gains or profits from his employment,excluding the value of those premises or the rent paid by theemployer if whichever is the higher:

Provided that-

• (i)where the premises are provided under an agreement with a third party which is not at arm's length,the value of the premises determined under this subsection shall be the fair market rental yalue of the premises in that year,or the rent paid by the employer,whichever is the higher;or
• (ii)where the premises are owned by the employer,the fair market rental value of thepremises in thatyear.

Provided that-

• where aperson occupies premises for part onlyofayear of income,the value ascertained under the foregoing provisions shall be reduced by that proportion which is just and reasonable havingregard to the periodof occupation and the yearlyrate ofgainsorprofits from employment:
• where the employeepaysrent to his employer for premises, the value ascertained under the foregoingprovisions shall be reduced bythe amountofrent;
• where part only of any premises is so provided,the Commissioner may reduce the value ascertained under the foregoing provisions to the amount which he considers just andreasonable:
• (iv) where the gains or profits from a person's employment, excludingthe valueof the premises provided by the employer,exceed six hundred thousand shillings in the year, thevalue ofthe premises determined under this subsection shall be subject to thelimit of-
• (a)therent paid by theemployer or thefair marketrental value ofthe premises in that year wherethe premises are provided under an agreement with a third party which is not at arm'slength. whichever is the higher.or
• (b)the fairmarket rental value of the premises in that year where the premisesareowned by theemployer.

• (4)Notwithstanding anything to the contrary in subsection (2)gains orprofits"donot include-
• (a) the expenditure on passages between Kenya and any place outside Kenyaborne by employer:

Provided that thisparagraph shall not apply to expenditure other than expenditure on the provision ofpassages for the benefit of an employee recruited or engaged outside Kenya and who is in Kenya solely for the purpose of serving the employer and isnot a citizen of Kenya:

• (aa)expenditure on vacation trips to destinations in Kenya paid by theemployeron behalfofan employee:

Provided that-

• (i)this paragraph shall cease to apply on the 1st July,2015:
• (ii) the period ofvacation shall not exceed seven days:and
• members of the employee:
• (b)in the case of a full-time employee or his beneficiaries(which expression includes a whole time service director,ora director who controls more thanfive percent of the share capital or voting power ofa company) the value ofany medical services provided by the employer or medical insurance provided by an insurance provider approved by the Commissioner of Insuranceand paid for by the employer on behalf ofa full-time employee or his beneficiaries:

Provided that in the case of a director other than awhole time service director,the value of the services shall be subject to such limit as the Cabinet Secretary may,from time to time,prescribe;

• (c)an amount paid by the employer as a contribution to a registered orunregistered pension fund,provident fund,individual
• retirement fund or scheme:

Provided that thisparagraph shall not apply to any contributionspaid

by an employerwho isnotaperson chargeable to tax-

• (i) to an unregistered pension scheme,unregistered provident fund or unregistered individualretirement fund;or
• (ii) to aregisteredpension scheme,a registered provident fund or a registered individual retirement fund in excess of the amount specifiedin section22Aor22B;

• (d)educational fees of employee'sdependants orrelatives disallowed under section 16(2(a)(iv)which have been taxed in the hands of
• the employer;
• (e)fringe benefits subject to tax under section 12B;
• (f) the value of meals served to employees in a canteen or cafeteria operated or established by the employer orprovided by a third party who is a registered taxpayer(whether themeals are supplied in thepremises of the employer or thepremises of the third party) where the value of the meal does not exceed the sum of fortyeight thousand shillings per year per employee subject to such conditions as the Commissioner may specify;
• in respect ofemployment or servicesrendered,whichispaid into
• a registered pension scheme:

Provided that-

• (a) this paragraph shall only apply in respect of amounts not exceeding two hundred and forty thousand shillings for eachyear ofservice;
• (b)this paragraph shall not apply to any person who is eligible for
• deductions under section 22A.
• (h)For the purposes of this subsection-
• (i)"beneficiaries"means the full time employee's spouse and
• not more than four children whose age shall not exceed twenty-oneyears;and
• (ii)"low income employee"deleted by Act No.16of2014,s. 5(c).
• (5)Notwithstanding any other provision of this Act,the value of the benefit (excluding the value of premises as determined under subsection (3)and the value of benefit determined under subsection (2B)for the purposes of this section,shall be the higher of the cost to the employer or
• the fair market value of the benefit:

Provided that-

• (a) in the case of an employee share ownership plan,the value of the benefit shall be the difference between the offer price,per share, at the date the option is granted by the employer,and the market value,per share on the date when the employee exercises the
• option;

• (b) the Commissioner may,from time to time,prescribe the value where the cost or the fair market value of a benefit cannot be
• determined.
• (6)For the purposesof paragraph (a)of the proviso to subsection (5)-
• (a) the benefits chargeable shall be deemed to have accrued on the date the employee exercises the option:
• (b)offer pricemeans the price at which an employer's shares are ownershipplan;
• (c)"market value",in relation to a share means
• (i)where the shares are fully listed on any securities exchange operating in Kenya,the mid-market value on the date the shares weregranted by the employer:or
• (ii)where the shares are not fully listed,the price which the shares might reasonablybe expected to fetch on sale in the openmarket,whichshallbeagreeduponwith the Commissionerbefore the grant of the options;
• (d)share optionmeans the offer made by an employer to an employee to purchase a fixed number of shares ata fixed price, which maybepaid forat the end of thevestingperiod;
• (e)vestingperiod"means a fixedperiod of time between thedate of offer by the employer and the date after which the option to purchase canbe exercised by the employee.

Section10of Cap470itisproposed toamend

• 10.Income from management or professional fees,royalties,interest
• and Rents
• (1)For the purposes of this Act,where a resident person or a person having a permanent establishment inKenya makes a payment to any other personin respectof-
• (a)a management or professional fee or training fee:
• (b)a royalty ornatural resource income;
• (c)interest and deemed interest;
• (d)theuseof property:

• (e)an appearance at,or performance in,any place(whether public or private)for the purpose of entertaining,instructing,taking part in any sporting event or otherwise diverting an audience:or
• (an activity by way of supporting.assisting or arranging an appearance or performance referred to in paragraph (e)ofthis
• section,
• (g)winnings;
• (h)deleted by Act No.16 of2014,s.6(b);
• (i) deleted byAct No.23of2019,s.6(a):
• an insurance or reinsurance premium.
• (k)salespromotion,marketing.advertisingservices.and transportation of goods (excluding air and shipping transport
• services,

the amount thereof shall be deemed to beincome which accrued in or was derived fromKenya:

Provided that-

• (i)this subsection shall not apply unless the payment isincurred in the production of income accrued inor derived from Kenya or in connexion with a business carriedon or to be carried on,in whole or in part,in Kenya;
• (ii)this subsection shall not apply to any such payment made,or purported to be made,by the permanent establishment in Kenya of a non-resident person to that-non-resident person except for deductionsprovidedforby agreementsunder section 41;
• (il)for the avoidance of doubt, the expression non-resident person shall include both head office and other offices of the non-resident person.
• (2)Anet gain referred to in section 3(2)(g)is deemed to be income
• that accrued in or wasderived fromKenya.

Section 12EofCap470it isproposed toamend-

12E.Digital service tax

• (1)Notwithstanding any other provision of this Act,a tax to be known as digital service tax shall be payable by a non-resident person whoseincomefrom theprovision ofservicesis derived from or accrues in

Kenya through a business carried out over the internet or an electronic network including through a digital marketplace:

Provided that this section shall not apply to a non-resident person with a permanent establishmentinKenya.

• (2)A person subject to digital service tax shall submit a return and pay thetax due tothe Commissioner on or before the twentieth day of the month following the end of the month in which the digital service was offered.
• (3)Despite subsection (1),digital service tax shall not apply to income chargeable under section 9(2)or section 35.

Section15of Cap 470it isproposedto amend-

15.Deductionsallowed

• (1)For thepurpose of ascertaining the total income of any person for a year ofincome there shall,subject to section 16 of this Act,be deducted allexpenditure incurred insuch year of incomewhich is expenditure wholly and exclusively incurred by him in theproduction ofthat income, and where under section 27 of this Act any income of an accounting period ending on some day other than thelast day of suchyearof income is,for the purpose of ascertaining total income for any year of income, taken to beincome for any year ofincome,then such expenditure incurred during such period shall be treated as having been incurred during such yearof income.
• (2)Without prejudice to sub-section(1) of this section,in computing for a year ofincome the gains orprofits chargeable to tax under section
• 3(2)(a) of this Act,the following amounts shall be deducted:
• (a)bad debts incurred in theproduction of such gains or profits which the Commissioner considers to have become bad,and doubtful debts so incurred to the extent that they areestimated to the satisfaction of the Commissioner to have become bad,during such year of income and the Commissioner may prescribe such guidelines asmaybe appropriatefor the purposes of determining bad debtsunder this subparagraph,
• (b)amounts to be deducted under the Second Schedulein respect of thatyear of income;
• (bb)amounts to be deducted under the Ninth Schedule in respect of thatyearof income;

• (c)any expenditure of a capital nature incurred during that year of incomeby theowneroroccupieroffarmland for theprevention of soil erosion,
• (d) any expenditure of a capital nature incurred in that yearof income by any person on legal costs and stamp duties in eonnexion with the acquisition of a lease,for a period not in excess of,or expressly capable of extension beyond,ninety-nine years,of premises used or to be used by him for the purposes of his business;
• (e)any expenditure;othef than expenditure referred to in paragraph
• (of this section,ineurred in eonnection with any business before the date of comimencement of that business where such expenditure would have been deductible under this section if incurred after such date,so,however,that the expenditure shall bedeemed to have been jncurredon the date on which such businesscommienced:
• ()in the case of the owner ofpremises,any sums expended by him during such year of income for structural alterations to the premises where such Expenditure is necessary to maintain the existingrent:

Provided that no deduetien shall be made for the cost of afl extensionto,or replaceiment of,suehpremiises:

• (g)the amount eonsidered by the Commissiofef to be just and reasonable as representing the diminution in value of any implement,utensil or similar article,not beingmachinery or plant in respect of which a deduction may be made under the Second
• Schedule,employed in ihe pfoduetion of gains or profits:
• (h)Deleted by Act No.8of2020,s.5:
• (i)in the case of gains orprofits of theowner of any land from the sale of,or the grant of the right t6 fell,standing timber which was growing on such land at the time such owner acguired such land-
• (i)wheresuch land was acquired for valuableconsideration,so much of the consideration as the Commissioner may determine to bejust and reasonable asrepresenting thecost of such standingtimber;or
• (ii)where no valuable consideration was given for the land,so much of such amount as the Commissioner may determine to be just and reasonable as representing the value of such

standing timber at the time the owner acquired such land,as is attributableto such timber sold duringsuchyear ofincome:

• j)in the case of gains or profits from the sale of standing timber by aperson who haspurchased theright to fell such timber,so much of the price paid for such right as the Commissioner may determine tobe just and reasonableas attributable to the timber sold during such year of income;
• (k)Deleted by Act No.8of1997.s.32:
• any expenditure of a capitalnature incurred in such year of income by the owner or tenant of any agricultural land,on clearing such land,or on clearing andplanting thereon permanent orsemi-permanent crops:
• (m)Deleted by Act No.16of 2014,s.7(a);
• (n)any expenditure incurred by any person for the purposes ofa business carried on by him being
• (i)expenditure of a capital nature on scientificresearch;or
• (ii)expenditurenot of a capital nature on scientific research;or
• (ii)a sum paid to a scientific research association approved for the purposesof thisparagraph by the Commissioner as being an association which has as its object the undertaking of scientific research related to the class of business to which such business belongs:or
• (iv)a sum paid to any university,college,research institute or other similar institution approved for the purposes of this
• paragraph by such Commissioner for the scientifie research as is mentioned in subparagraph (ii)of this paragraph;
• (o)any sum contributed in such year of income by an employer to a national provident fund or other retirement benefits scheme established foremployees throughoutKenya by theprovisionsof anywritten law;
• (p)any expenditure on advertising in connexion with any business to
• the extent that the Commissioner considers just and reasonable; and for this purpose expenditure on advertisingincludes any expenditure intended to advertise or promote,whether directly or indirectly,the sale of the goods or services provided by that business,
• (q)Deleted by Act No.13of 1984,s.19;

• (r)an amount equal to one-third of the total gains and profits from employment of an individual who is nota citizen of Kenya and-
• (i)whose employer is a non-resident company or partnership tradingforprofit;
• (ii)who is in Kenya solely for the performance of his duties in relation to his employer's regional office,which office has been approved for the purposes of this paragraph by the Commissioner:
• (iii)who is absent from Kenya for the performance of those duties for a period or periods amounting in the aggregate to onehundred and twenty days ormorein thatyear of income; and
• (iv)whose gains and profits from that employment are not deductiblein ascertaining the total income chargeable to tax under this Act of his employer or of anycompanyor partnership which controls,oris controlled by.that employer;
• (s)Deleted by Act No.8of 2020,s.5;
• (ss)Deleted by Act No.8of 2020,s.5;
• (t)expenditure incurred by the lesseein thecase of a lease or similar transaction as determined in accordance with such rules as.may beprescribed under this Act;
• (u)Deleted by Act No.8of 2020,s.5.
• (v)Deletedby Act No.8of2020.s.5.
• (w)any donation in that year ofincome to a charitable organization whose incomeisexempt from taxunder paragraph i0 of theFirst Schedule to this Act,or to any project approved by the Cabinet Secretary responsible for matters relating to finance;
• (x)expenditure of a capital nature incurred in that year of income, with theprior approval of the Cabinet Secretary,by a person on the construction of a public school,hospital,road or any similar kind of social infrastructure;
• (y)deleted by Act No.22of2022,s.8.
• sponsoring sports,with the prior approval of the Cabinet Secretary responsibleforsports:
• (aa)expenditureincurred in thatyear ofincome on donations to the Kenya Red Cross,county governments or any other institution

responsiblefor themanagementofnational disasters to alleviate

the effects of a national disaster declared by thePresident.

• (ab) deleted by Act No.2of2020,Sch.
• (3)Without prejudice tosubsection (1),in ascertaining the total incomeofaperson forayear ofincome the following amounts shall be deducted:
• (a)the amount ofinterest paid inrespect of thatyear of income by the Commissioner is satisfied that the money so borrowed has been wholly and exclusively employed by him in the production of investment income which is chargeable to tax under this Act:

Provided that-

• (i)the amount of interest which may be deducted under this
• paragraph shall not exceed the investment income chargeable to tax for that year of income,and where the amount of that interestpaid in that year exceeds the investment income of that year,the excess shall be carried forward to the next succeedingyear and deducted only from investment income and,in so far as the interest hasnot alreadybeen so deducted from investment income of the subsequent years ofincome: and
• (ii) for the purposes of this paragraph,"investment income" dividendsand qualifyinginterest:
• (b)the amount of interestnot exceedingthree hundred thousanid money borrowed by him from one of the first five financial institutions specified in theFourth Schedule and applied to the
• thatyear of income forresidentialpurposes:

Provided that-

• (i)if any person occupies any premises for residential purposes forpart only of a year of income the deduction under this paragraph shall bereduced accordingly:and
• (i)no person may claim a deduction under this paragraph in respect of more than one residence;
• (c)deleted by Act No.14of1982.s.19;

• (d)in the case of a partner,the amount of the excess.if any,of his share of any loss incurred by the partnership,calculated after deducting the total ofany remuneration and interest on capital payable to any partner by the partnership and after adding any interest on capital payablebyanypartner to thepartnership.over the sum of any remuneration and such interest so payable to him less any such interest sopayable by him:
• (e)deleted by Act No.8of1978,s.9;
• f)the amount of any loss realized in computing,in accordance with paragraph 5(2).of the Eighth Schedule,gains chargeable to tax undersection 3(2)(;but the amount ofany such loss incurred in ayear ofincome shall be deducted only from gains under section 3(2)(f) in that year of income and,in so far as it has not already been deducted,from gains in subsequent years of income;
• (g)in the case of a business which is a sole proprietorship,the cost of benefit of theproprietor,subject to a limitof onemillion shillings peryear.
• (4)Where the ascertainment of the total income of a person resuitsin adeficit for a year of income,the amount of that deficit shall be an allowable deduction in ascertaining the total income ofsuch person for thatyear and the succeedingyears ofincome.
• (4A) Deletedby Act No.22of2022,s.8(b).
• (5)Notwithstanding subsection (4).the Cabinet Secretary may,on therecommendation of the Commissioner,extend theperiod of deduction beyond ten years where a person applies through the Commissioner for such extension.giving evidence ofinability to extinguish the deficit within thatperiod.
• (5)(a)Aperson to whom this subsection applies who has succeeded to any business,or to a share therein,either as a beneficiary under the will or on the intestacy of a deceased person who carried on,solely or in partnership,that business shall be entitled to a deduction in the year of income inwhich he sosucceedsin respect of such part ofany deficit in the total income of thedeceased for hislastyear of incomeas is attributable to anylosses incurred by the deceased in the business in thatyear ofincome orinearlier yearsof income.
• (b)Thissubsection applies toa personwho is thewidow,widower or child,of the deceased person and to a person who was an employee or partner of the deceased person in that business;and,

where there are two ormore such persons,each such person shall be entitled to a deduction of somuch ofthewhole amount deductible as his share in the business under the will or on the intestaey bears to the sum of the shares of all such persons.

• (5A)For the purpose of section 3(2)(g),the amount of the net gain to beincluded in incomechargeable to tax is-
• (a)deleted by Act No.14of2015,s.10(c)(i);
• (b)the amount computed accordingto the followingformula-

AxB/C

Where-

Ais the amount of the net gain;

• Bis the value of the interest derived,directly or indirectly.from
• immovableproperty inKenya:and

Cis the total value of theinterest.

• (6)For thepurposes of this section-
• (a)"scientific research"means any activities in the fields ofnatural or applied science for the extension ofhuman knowledge,and when
• applied to anyparticular business includes
• (i)any scientific research which may lead to,or facilitate,an extension of that business or of businesses in that class;
• (i) any scientific research of a medical nature which has a special relation to the welfare ofworkers employed in that business, orin businesses of that class;
• (b)expenditure of a capital nature on scientific research does not include any expenditure incurred in the acquisition ofrights in,or arising out of scientific research but,subject thereto,does include allexpenditure incurred for theprosecution of,or the provision of
• facilities-for theprosecution of,scientificresearch.
• (7)Notwithstanding anything contained in thisAct-
• (a)thegainsorprofitsof aperson derived from any one of the seven sources ofincome respectively specified in paragraph (e)of this subsection(and in this subsection calledspecified sources") shall be computed separately from the gains orprofits of that person derivedfrom any other of the specified sources and separately from any other income of thatperson;

• (b)where the computation of gains orprofits of aperson in a year of income derived from a specified source results in a loss,that loss may onlybe deductedfromgainsorprofitsof that person derived from the same specified source in the following year and,in so far as the loss has not already been so deducted,in subsequent yearsofincome:
• (c)the subparagraphs of paragraph (e) of this section shall be construed so as to bemutually exclusive;
• (d)gainschargeable to tax under section 3(2)()of this Act and losses referred to in subsection (3)(f) of this section shall not be deemed income or losses derived orresultingfrom specified sources for the purposes of this subsection:
• (e)the specified sources of income are
• rights granted to other persons for the use or occupation of immovableproperty;
• (ii)employment (including former employment)of personal services for wages,salary,commissions or similar rewards (not under an independent contract of service).and a selfemployedprofessionalvocation:
• (ii)employment the gains or profits from which is wife's employment income,profession the gains or profits from which is wife's professional income and wife's selfemployment the gains or profits from which is wife's selfemploymentincome;
• (iv) agricultural,pastoral,horticultural,forestryor similar activities,not falling within subparagraphs (i)and (ii) of this paragraph;
• (ivA)surplus funds withdrawn by or refunded to an employer in respect of registered pension or registered provident funds which are deemed to be the income of the employer under section8(10):
• (ivB)income of a licensee from one licence area or a contractor from one contract area as determined in accordance with the Ninth Schedule;and
• (v)other sources of income chargeable to tax under section 3(2) (a),not fallingwithin subparagraph (i).(i),(ii) or (iv)of this paragraph.

Section18of Cap470whichitisproposed toamend

• 18.Ascertainment of gains or profits of business in relation to certain
• nonresidentpersons
• (1)Where a non-resident person carries on any business in Kenya which consists of manufacturing.growing.mining,or producing,or harvesting,whether from the land or from the water,any product or produce,and sells outside,or for delivery outside Kenya,such product or produce,whether or not the contract of sale is made within or without him outside Kenya,then the gains or profit from such business carried on inKenya shall be deemed to be income derived from Kenya and to be
• Kenya,or utilizes that product or produce in any business carried on by gains or profits such amount as would have accrued if such product or produce hadbeen soldwholesale to thebest advantage.
• (2)Where a bank which is a permanent establishment of a nonresident person holds outside Kenya any deposits,assets or property acquired from its operations in Kenya,the gains or profits aceruing from such deposits,assets or other property held outsideKenya shall be deemed tobeincome accrued in or derived fromKenya.
• (3) Where a non-resident person carries on business with a related the resident person or through its permanent establishment either no profits orless than the ordinary profits which mightbe expected to accrue
• resident person and the course of such business is such that it produces to from that business if there had been no such relationship,then the gains or profits of such resident person or through its permanent establishment from such business shall be deemed tobeof such an amount as might have been expected to accrueif the courseof thatbusiness had been conducted by independent persons dealing at arm's length.
• (4)For the purpose of ascertaining the gains or profits of any business carried on inKenya no deductions shall be allowed in respect of any expenditure incurred outside Kenya by a non-resident person other than expenditure in respect of which the Commissioner determines that adequate consideration has been given;and,in particular,no deduction
• shall be allowed inrespect ofexpenditure-
• (a)onremunerationfor services rendered by thenon-resident directors (other than whole-time service directors) of a nonresident company the directorswhereofhaveacontrollinginterest therein,in excess of five per cent of the total income of such company,calculated before the deduction of such expenditure.or of twenty-five thousand shillings,whichever is the greater,so, however,that in no case shall a deduction in excess of one
• hundred and fifty thousand shillingsshall be allowed;

• (b)on executive and general administrative expenses expect to the extent that the Commissioner may determine that expenditure to be just and reasonable.
• through a permanent establishment in Kenya the gains or profits of the permanent establishment shall be ascertained without any deduction in respect of interest,royalties or management or professional fees paid or purported to be paid by thepermanent establishment to the non-resident tonet assets or liabilities purportedlyestablished between thepermanent establishment in Kenya and the non-resident person

Provided that for the avoidance of doubt,the expression nonresident person"shall include both thehead office and other offices ofthe non-residentperson.

• (6)For the purposes of subsection (3).a person is related to another if一
• (a)either person participates directly or indirectly in the management, control or capital of thebusiness ofthe other;
• (b)athird person participates directlyor indirectly in the management,control or capital of thebusinessofboth;or
• (c)an individual,who participates in the management,control or capital of the business of one,is associated by marriage, management,control or capital of thebusinessof the other.
• (7)Deleted by Act No.16 of2014,s.9(d).
• (8)The Cabinet Secretarymay.by rules published in the Gazette-
• (a)issue guidelinesfor the determination of the arm's length valueof a transaction for purposes of this section:or
• (b) specify such requirements as he may consider necessary for the better carrying out of theprovisions of this section.

Section21of Cap470itisproposed toamend-

• 21.Members'clubs and tradeassociations
• (D)A body ofpersons which carries on a membersclub shall be deemed to be carrying on a business and the grossreceipts on revenue account(including entrance fees and subscriptions) shall be deemed to be income from a business:Provided that wherenot less than three-quarters ofsuch gross receipts,other than gross investment receipts,are received

from the members of such club,such body of persons shall not be deemed to be carrying on a business and no part of such gross receipts,other than gross investment receipts,shall be income.

• (2)A trade association may elect,by notice in writing to the Commissioner,inrespect of any year ofincome to be deemed to carry on abusiness charged to tax,whereupon its gross receipts on revenue account from transactions with its members (including entrance fees and annual subscriptions)and with other persons shall be deemed to be income from
• businessfor that and succeedingyears of income.
• (3)In this section-

"member"means-

• (a) in relation to a members'club,a person who,while he is a member,is entitled to an interest in all the assets of such club in the event of itsliquidation:
• (b)in relation to a trade association,a person who is entitled to vote at ageneral meetingof such trade association:

"membersclub"means a club or similar institution all the assets of

which areowned by orheld in trustforthemembers thereof;

gross investment receipts"means gross receipts in respect of interest,dividends,royalties,rents,other payments for rights granted for use or occupation ofproperty.or gains of a kind referred to in paragraph (f)ofsubsection(2)of section 3.

Section2lof cap470itisproposed toamend-

21.Membersclubs and trade associations

• (l)A body of persons which carries on a members'club shall be deemed to be carrying on a business and the gross receipts on revenue
• account (ineluding entrance fees and subseriptions) shall be deemed to be income from a business:Provided that where not less than three-quarters ofsuch gross receipts,other than gross investment receipts,are received from the members of such club,such body ofpersons shall not be deemed to be carrying on a business and no part of such gross receipts.other than gross investment receipts,shall be income.
• (2)A trade association may elect,by notice in writing to the Commissioner,inrespect of anyyearofincometobe deemed to carry on a business charged to tax,whereupon its gross receipts on revenue account from transactions with its members (including entrance fees and annual subscriptions)and withotherpersons shall be deemed to beincome from businessforthat and succeedingyears ofincome.

• (3)In this section-

"member"means-

• (a)in relation to a members'club,a person who,while he is a member,is entitled to an interest in all the assets of such club in the event ofitsliquidation;
• (b)in relation to a trade association,aperson who is entitled to vote at'ageneralmeeting of such trade association;

"members'club"means a club or similar institution all the assets of which are owned by orheld intrust for themembers thereof:

"gross investment receipts"means gross receipts in respect of interest,

dividends,royalties,rents,other payments for rights granted for use Oroccupation ofproperty,orgains of akind referred to inparagraph (f)of subsection(2)of section3.

Section22ofCap470it isproposedtoamend-

• 22.Purchased annuities other than retirement annuities,etc.
• (1)Notwithstanding section 3(2)(c)of this Act,where any payment ofan annuity to which this section applies is made,that portion of the payment which as represents the capital element thereof,as ascertained under subsection(2)of this section,shall not be deemed to beincome.
• (2)For thepurpose of this section-
• (a)an annuity includes any amount payable on a periodic basis, whetherpayableatintervalslongerorshorter than ayear;
• (b)the portion of each payment of an annuity to which this section applies which represents the capitalelement thereof shall be that proportion of each such payment which the consideration or purchasepricefor thecontractbears to the total payments-
• to be made under the contract,in the case of a contract for a term ofyears certain;or
• (ii)expected at the date of the contract to be made under the contract,inthe case of a contract under which the continuation ofsuchpayments dependsin whole or in part upon the survival ofanindividual;
• (c)where the continuation of such payments depends in whole orin part upon thesurvival of an individual-

• (i)if any table of mortality has been used as the basis for determining the consideration or purchase price for the contract,that table shall be used in computing the payments expected to be made under the contract,calculations being based upon completeexpectation of life;
• (ii)if no table of mortality has been used as the basis for determining the consideration or purchase price for the contract,such table of mortality as the Commissionef considers appropriate to the case shall be used in computing the payments expected to be made under the contract, caleulationsbeingbased on cormplete expectation of life;
• (ii)the age of that individual at the date of the contract shall be determined by subtracting the calendaryear ofhisbirth from
• the calendar year in which that date falls;
• (d)where the continuation ofpayments depends upon the survival of an individual and where,in the event of the death of such individual before such payments aggregate a stated sum,the contract provides that the unpaid balance of the stated sum shall be paid either in a lump sum or by instalments,then the contract shall bedeemed for thepurpose of determining the expected term thereof to provide for the continuance of such payments thereunder for aminimum term certain equal to the nearest complete number ofyears required to complete the payment of the stated sum;
• (e)where suchpayments commence on the expiry ofa term ofyears or on the death of any individual,then the consideration or purchaseprice for the contract shall be taken tobe
• thelump sum,ifany,which the individual entitled to those
• paymentsis entitled toreceive inlieu thereof;or
• if there is no lump sum, the sum ascertainable from the contract as thepresentvalueof the annuity at the date those paymentscommence;or
• (ii)if there is no such sum,the present value of those payments computed asatthedate thepaymentscommence on thebasis ofa rate of interest of four per cent per annum and,where thepayments depend upon the survival of an individual,the probabilitiesofsurvival ofthatindividual shall becomputed
• (c).

• (3)This section shall apply to annuities,whenever purchased or
• commencing,payableunder a contract but shall not apply-
• (a)to any annuity payableunder a registered annuity contract or a registered trust scheme;or
• (b)to any annuity purchased under any direction in a will,or purchased to provide for an annuity payable under a will or settlement outofincomeofproperty disposed ofbysuchwill or settlement:or
• (c)to any annuity purchased under any pension scheme or pension
• fund:or
• services orpast servicesof another person.

Section22BofCap470it isproposedtoamend-

• 22B.Deductionsin respect of registeredindividual retirement funds
• (1)An individual who is nota member ofa registered fund ora publicpension schemeatany time in ayear ofincome commencingon or after the 1st January.1994 shall beeligible to contribute toa registered individual retirement fund up to the amount deductibleunder subsection
• (2).
• (2)Notwithstanding the provisions ofsection 16(2)(d)and (e),the deduction in respect of contributions of an individual to a registered
• individualretirementfundin ayearshall belimited to thelesserof-
• (a)the sum of the contributions made by the individual or by the employerofthe individual onhisbehalfon orbefore the3lstof Decemberoftheyear,or
• (b)thirty per cent ofpensionable income of the individual in that
• year:or
• (c)two hundred and forty thousand shillings (or,where the contributions are made on behalf of the individual by his employer in respect of a part year of serviceofthe individual, twenty thousand shillingsper month of service)reduced by the amount of the contributions made by the individual or by an employer onbehalf of theindividual to the National Social SecurityFund in that year.
• (3)All funds maintained by an individual in a registered individual retirement fund shall beheld in oneaccountwith a qualified institution.

Section27ofCap.470itisproposedtoamend-

• 27.Accounting periods not coincidingwith year of income,etc.

• (1)Where any person usually makes up the accounts of his business
• for a period of twelve months ending onany day other than 31st December,then,for the purpose of ascertaining his total income for any year ofincome,the income of any such accountingperiod endingon such other date shall,subject to such adjustment as the Commissioner may consider appropriate,be taken tobeincome of the year ofincome inwhich the accountingperiodends-
• (a)in the case of a person other than an individual,as regards all income charged under section 3of this Act:and
• (b)in the case of an individual,as regards all income charged under thatsection other than gains orprofitsfrom any employment or
• services rendered.
• (lA) Aperson carrying on an incorporated business may subjecl to thepriorwrittenapprovaloftheCommissioner alterthedatetowhich the
• accounts of thebusinessare madeup.
• (1B)A person seeking the approval of the Commissioner under
• subsection
• (1A) shall apply in writingto the Commissioner at least sixmonths before thedate towhich the accounts areintended tobemadeup.
• (lC)The Commissioner shall within six months from the date of receipt of the application communicate his decision in writing to the applicant.
• (2)Where aperson makesup the accounts of his business for a period greater orless than twelve months,the Commissioner may.subject tosuch adjustments as he may consider appropriate,including the assessment for a year ofincome which,but for any alteration in the date to which the accounts of the business are made up,would havebeen assessed income of theyear ofincomein which theaccountingperiod ends,and tax shall bechargedaccordingly.
• (3)The accountingperiod of apersoncarrying on any unincorporated business shall be theperiod of twelvemonths endingon3lst December in eachyear,and
• (4)Any person to whom subsection (3) appliesshall not later than 31st December,1998 change the accounting date to comply with the provisions ofthatsubsection.

Section30Aof Cap470whichitisproposedtoamend-

30A.Affordablehousingrelief

• (1)A resident individual who satisfies the Commissioner that in a yearofincomethat theperson-
• (a)is eligible to make an application under an affordable housing scheme;
• (b)has applied and is awaiting the allocation of a house under an affordablehousing scheme:and
• (c)is saving for a purchase under an affordable housing scheme approved by the Cabinet Secretary in charge of housing.shall for thatyear of income be entitled to a personal reliefin thisAct referred toasthe affordablehousingrelief.
• (2)A person who has been allocated a house under the affordable housing scheme and hasbeen subject to anaffordable housingrelief under subsection (l)shall not bere-eligible for a subsequent relief.

Section31ofCap470it isproposedtoamend-

• 31.Insurance relief
• (1)Aresident individualwho proves thatinayear of income-
• (a)the individual has paid a premium for an insurance made by the individual on theindividual'slifeor thelife ofthe individual's whether or not in conjunction with another benefit,and that the insurance is made with an insurance company lawfully carrying on in Kenya the business of life insurance,and that sums payable under the insurance arepayable inKenya in the lawful currency ofKenya;or
• (b)his employer has paid a premium for that insurance on the life and for the benefit,of that individual which is charged with tax under this Act on that individual:or
• (c)he,as well ashis employer,has paid a premium for the insurance referred to in paragraph (b),shall,for that year of income,be entitled to apersonal reliefin this Actreferred toas the insurance relief:

Provided that-

• (i)no insurance relief shall be granted in respect of that part ofa premium for an insurance as secures a benefit which may,at the option of the assured,be withdrawn at any time prior to the determination ofthe insurance,and in that case the proportion of premiums otherwiseeligibleforrelief,if any,shall be the amount that the Commissionermay determine tobejustandreasonable;

• (ii)no relief shall be granted in respect ofapremium foraninsurance unless the person claiming the relief furnishes evidence as to the nature and conditions of the insurance and such other particulars
• asmaybe required by the Commissioner;
• (ii)an education policy with a maturity period of at least tenyears
• shall qualifyforrelief;and
• (iv)theprovisions of thissection shall apply only tolifeoreducation
• policieswhose term commences on or afterIstJanuary,2003;
• (v)a health policy whose term commences on or after lst January,
• 2007 ora contributionmade to the National Hospital Insurance Fund,shall qualifyforrelief;
• (vi)where a policy is surrendered before its maturity,all the relief granted to thepolicyholder shall berecoveredfrom the surrender value of the policy and remitted to the Commissioner by the
• insurer.
• (2)In this section"child",means any child of the resident individual
• and includes a step-child,an adopted child and an illegitimate child who was under the age ofeighteenyearson the date thepremium waspaid.

Section34ofCap470itisproposed toamend-

• S34.Rates of tax
• (1) Subject to this section-
• (a)tax upon the total income of an individual,other than that part of the total income comprising wife's employment income fringe benefits and the qualifying interest,shall be charged for a year of income at the individual rates for thatyearofincome;
• (b) tax upon that part of the total income which consists ofwife's employment income,wife's professional incomeand wife's selfemployment income other than income arising from fringe benefits shall be charged for a year of income at thewife's employment income rate,wife's professional income rate and wife's self-employment income rate,as the case may be,for that year of income;
• (c)tax upon that part of the total income of an individual that comprises the qualifying interest shall be charged for a year of income at the qualifying interest rate of tax for that year of
• income:

• (d)tax upon thatpart of the total income of aperson that comprises the qualifying dividends shall be charged for ayear of income at the qualifying dividendrate of taxfor thatyear ofincome;
• (e)tax upon the total income of a person other than an individual shall be charged atthe corporationratefor thatyear ofincome;
• (f)taxupon that part of total income that comprises dividends other than qualifying dividends shall be charged in ayear of income at the resident withholdingrate in respect of a dividend specified in the Third Schedule;
• (g)tax upon the total fringe benefitsprovided by an employer shall be charged at the resident corporation rate for that year of income;
• (h)tax upon gross receipts of a person chargeable to tax under section 12Cshall becharged at theresident ratefor thatyear of income;
• (i)deletedbyAct No.14of2015,s.11:
• (j) tax upon the capital gains of a person charged under section 3(2)(f)shall be charged at the rate of fifteen percent and shall not be subject tofurther taxation:

Provided that in the case of a firm certified by the Nairobi International Financial CentreAuthority that-

• (a)invests five billion shillings inKenya;and
• (b)the transfer of such investment is made after five years,the applicablerate shall be therate thatwasprevailing at the time that the investment wasmade.
• (k)tax upon gross rental receipts of a person chargeable to tax under section 6A shall be charged at the resident rate specified under the Third Schedulefor thatyear of income;
• (l)the transfer of interest in a person shall be charged as per provisions of theNinth Schedule;
• (m)winnings;
• (n) tax upon the gross turnover of a person whose income is chargeable to tax under section 12D shall be charged at the rate specified in the Third Schedule;
• (o)tax upon the gross transaction value of services chargeable to taxunder section 12E shall be charged at therate specified in the Third Schedule.

• (1A)Deleted by Act No.16of2014,s.10(b).
• (1B)Deleted by Act No.16of2014,s.10(b).
• (2)Tax upon the income of a non-resident person not having
• permanent establishment inKenya which consists of-
• (a)a management orprofessional fee:
• (b)aroyaltyornaturalresourceincome:
• (c)arent,premium or similar consideration for the use or occupation
• ofproperty;
• (d)adividend:
• (e)interest;
• (fapension or retirement annuity:
• anyplace(whetherpublic or private)forthepurposeof entertaining.instructing.taking part in any sporting event or otherwise divertinganaudience;or
• assisting or arranging an appearance orperformance referred toin paragraph (g)of this subsection;
• (i)winnings:
• (j)a payment in respect of gains or profits from the business of transmitting messages which is chargeable to tax under section
• 9(2):
• (k)deletedby Act No.14of2015,s.11(b)(i);
• (n)deletedbyAct No.23of2019.s.10;
• (o)insuranceorreinsurance premium,except insurance
• or reinsurancepremium paid inrespect of aviation insurance;
• P) salespromotion,marketing.advertisingservices, and transportationof goods (excluding air and shipping transport
• services,or
• (q)gainsfrom financial derivatives. shall be charged at the appropriate non-resident rate in force at the date of payment of such income and shall not becharged to tax under subsection (l).
• (4)In this section"persondoesnot include a partnership
• Section35ofCap470whichitisproposedtoamend-
• 35.Deduction of tax from certain income

• (1)Every person shall,upon payment of any amount to any nonresident person nothavinga permanent establishment in Kenya in respect
• of-
• (a)a management or professional fee or training fee except-
• (i)a commission paid to a non-resident agent in respect of flowers,fruits or vegetables exported from Kenya and auctioned in any market outside Kenya and audit fees for analysis of maximum residue limits paid to a non-resident laboratoryorauditor:or
• (ii)a commission paid by a resident air transport operator to a non-resident agent in order to secure tickets for international travel:
• (b)aroyalty ornaturalresourceincome:
• (c)a rent.premium or similar consideration fortheuse or occupation ofproperty,except aireraft or aircraft engines,locomotives or rolling stock:

Provided that

• (i where the bond,loan,claim,obligation or other evidenceof indebtedness is acquired by a person exempt under the First Schedule or a financial institutionspecified in the Fourth Schedule from a non-resident person,such an exempt person or financial institution shall deduct tax from the differencebetween the acquisition price and the original issue price:and
• (ii)where a non-resident person disposes of a bond,loan,claim, obligation or other evidence ofindebtedness acquired froma person exempt under the First Schedule or a financial institution specified in the Fourth Schedule,tax shall be deducted upon final redemption from the difference between the final redemption price and the acquisition price,if the exempt person or financial institution certifies the acquisition price to the satisfaction of the
• Commissioner,
• (d)a dividend;
• (e)interest and deemed interest;
• (f)a pension or retirement annuity:
• private)for the purpose ofentertaining.instructing,taking part in any sportingevent or otherwise diverting an audience;

• appearance or performance referred to in paragraph (g)of this
• subsection,
• (i)winnings:
• (j)deleted by Act No.38of2016.s.9(a);
• (k)deleted by Act No.16of2014.s.11:
• lgains or profits from the business oftransmitting messages which
• is chargeable to taxunder section9(2):
• (m)deleted by Act No.23of2019.s.12(i):
• (n)insuranceorreinsurancepremium,except insuranceor
• reinsurance premium paid in respect of aircraft;
• services.and transportation of goods (excluding air and shipping transport
• (o)salespromotion,marketing,advertising services):
• (p)gains from financial derivatives, which is chargeable to tax,deduct therefrom tax atthe appropriate non-resident withholding taxrate:
• (lA)Subsection (I) shall not apply to payments made by filming
• (2)Deletedby Act No.8of1978.s.9(1)(ii).
• agents and filmingproducers approved by theKenya Film Commission to actors and crew members approved for purposes ofparagraphs(g)and (h).
• (3)Subject to subsection (3A),a person shall,upon payment of an amount toaperson resident or havinga permanentestablishmentinKenya inrespectof
• (a)a dividend:
• (b)interest.other than interest paid to a financial institution specified in the Fourth Schedule which is resident orwhich has a permanent establishment inKenya,including interest arising from a discount upon final satisfaction or redemption ofa debt,bond. loan,claim,obligation or other evidenceof indebtedness measured as the original issue diseount.other than interest or discounts paid to a person exempt under the First Schedule or a
• financial institution specified intheFourth Schedule:

Provided that-

• (i)where the bond.loan,claim,obligation or other evidence of indebtedness is aequired by a person exemptunder the First

Schedule or a financial institution specified in the Fourth Schedule from the resident person,such an exempt person or financial institution shall deduct tax from the difference between the acquisitionprice and the original issue price:and

• (i)where the resident person disposes of a bond,loan,elaim, obligation or other evidenceof indebtedness acquired from a person exempt under the First Schedule ora financial institution specified in the Fourth Schedule,tax shall be deductedupon final redemption from the difference between the final redemption price and the acquisition price.if the exempt person or financial institution certifies the acquisitionprice to the satisfaction of the Commissioner,
• (c)an annuity payment excluding that portion of the payment which represents the capital element:
• (d)a commission or feepaid or credited by an isurance company to any person for the provision,whether directly or indirectly.of an commissionor feepaidor creditedto another insurance company):
• registeredpension fund or alump sum out of a registered provident fund in excess of the tax exempt amounts specified in section 8(4)and (5).or any amountpaid out ofa registered individual retirement fund.or a benefit paid out ofthe National Social Security Fund inexcess ofthetax exempt amount specifiedin section8(5):
• (ee)surplus funds withdrawn from or paid out of registered pension orprovident funds;
• (f)management or professional fee or training fee,the aggregate value ofwhich is twenty-four thousand shillings or more in a month:

Provided that for the purposes of this paragraph,contractual fee within the meaning of"managemeni or professional feeshall mean payment for work done in respect of building,civil or engineering works,

• (g)a royalty ornatural resource ineome;
• (h)winnings.or
• (i)deleted by Act No.38of 2016,s.9 (b)(ii))

• j)rent,premium or similar consideration for the use or occupation of immovableproperty which ischargeableto tax.deduct therefrom taxatthe appropriate resident withholding tax.
• (3A)Notwithstanding the provisions of subsection(3),only a person appointed for that purpose by the Commissioner,in writing,shall deduct taxunder paragraph (j)ofthat subseclion.(3B)Deleted by Act No.I6of 2014,s.11(c).(3C)Deleted by Act No.9of2007.s.23.whichis income exempt from tax under this Act,or to which an order made under this Act orto which an order made under subsection (7)or (8) applies.
• (5) Where a person deducts tax under this section he shall,on or beforethe twentieth day of the month following themonth in which the
• deduction was made-
• (a)remit the amount so deducted to the Commissioner together with areturn in writing of the amount of the payment the amount of tax deducted,and such other information as the Commissioner may specify:and
• (b)furnish the person to whom the payment is madewith a certificate
• (5A) The Commissioner shall pay the tax deducted from winnings Development Fund established under section 24 of the Public Finance
• under subsection (l)(i)and (3)(h)into the Sports, Arts and Social Management Act,(Cap412A).
• (6)Deletedby Act No.38of2016.s.9(d).
• (6A) Where any person who is required under subsection (3A) to
• deducttax-
• (a)fails tomake the deduction orfailsto deduct the whole amount of
• the-tax which he should have deducted;or
• (b)fails to remit the amount ofany deduction to the Commissioner
• on or beforethe twentieth dayofthemonth following themonth in which such deduction was made or ought to have been made. any Collector ofStampDutiesappointedunder section 4ofthe Stamp Duty Act (Cap.480),shall not stamp the instrument of which the property is the subject matter under the Stamp Duty Act,and Registrars of Title or Land Registrars appointed under any written law shall notregister the property under any written law,until such tax hasbeen duly accounted for:

Provided that the transferee of chargeableproperty may pay such tax and be entitled to recover the amount of the tax from any consideration for the transfer in his possession.by action in a court or by any other lawful means at hisdisposal.

• (6B) Deleted by ActNo.29of 2015.2nd Sch.
• (6C) Subject to subsection (6B),the provisions of this Act relauing to mutandis to appealsunder this section.
• (6D)A person aggrieved by the imposition.by the Commissioner,of Commissioner,objeet to the imposition within thirty days of the date of service of the notice of theimposition.
• (6E)The provisions of this Aet in respect of objections shall,mutatis mutandis.apply to objections underthis section.
• (7) The Cabinet Secretary may.by notice in the Gazette,exempt from the provisions of subsection (3)of this section any payment or class of payments made by any person or class of persons resident or having a permanent establishment inKenya.
• (8)The Cabinet Secrelary may,by notice in the Gazette,amend or add to the Fourth Schedulein respect of financial institutions resident or having a permanent establishment inKenya.

Section72Cof Cap470itisproposed toamend-

72C.Penalty on underpayment of instalment tax

• (1) Subject to theTwelfth Schedule,a penalty of twenty per cent of the difference between the amounit of instalment tax payable in respect of ayear of income as specified in section 12.and the instalment tax actually

2. (2)Where the Commissioner is satisfied that the difference referred hsection (1)was due to reasonable cause,he may remit the whole orpart of the penaty tynayable under this section,and where for a year of income the difference arises wholly or partly from an estimate of tax to be charged made before any change in any allowance,relief or rate of tax,the Commissioner may remit the interest charged thereon to the extent to which it is attributable to such a change:

Provided that-

• (a)the Commissioner may remit up to a maximum ofone million penalty or interest,and

• (b)the Comnissioner may remit any amount ofpenalty or interest in excess of one million five hundred thousand shillings with the prior written approvalof the Cabinet Secretary:and
• (c)the Commissioner shall makea quarterly report to the Cabinet

Section 133ofCap 470it isproposedto amend

• Secretary of all penaltiesand interest remitted during that quarter.

133.Repeals and transitional

• Community and shall not be construed as being repealed by any Act of the
• Community enacted hereafter.
• (2)Subject to subsection (4)of this section.theEast African Income Tax Management Act (E.A.Cap.24) shall.notwithstanding anything contained in the Treaty for East African Co-operation Act (Cap.4),cease tohave the force of law inKenya with effect from Ist January.1974.
• (3)Subject to subsection (4)ofthis section, theIncome Tax (Allowances and Rates)(No.2)Act,1971 (Act No.29of1971),is repealed.
• (4)Notwithstanding subsections (2)and (3)of this section,the East African Income Tax Management Act and the Income Tax (Allowances
• and Rates) (No.2) Act,197l,shall remain in force for all purposes in relation to the year of income 1973and previousyears ofincome and the Income Tax(Allowances and Rates)(No.2)Act,1971,shall be read and construed as if,when enacted,the Second Schedule thereto contained the following additionalparagraph-
• "3.The non-resident tax rates shall be the rates set out in
• (5)The transitional provisions contained in the Sixth Schedule shall
• paragraph I of the Third Schedule to this Act and for the purposes of thisparagraph such rates shall be charged from 18th June.1971"
• have effectnotwithstanding anything contained in this Act.
• in force until 31stDecember,2023
• (6)Notwithstanding the repeal of the Second Schedule,the provisions ofparagraph 24Eof therepealed Schedule shall continue to be
• (7) Subject to the provisions of section 12of this Act.any investment allowance on any written down values as at the date of commencement of

FirstScheduletoCap470 it isproposed to amend-

• this Act,shall be claimed on a straight-line basis.

PartI-INCOMEACCRUEDIN,DERIVEDFROMOR RECEIVEDINKENYA WHICHISEXEMPTFROM TAX

• sporting association,that is to say,an association-
• 6.The income,other than income from investmenis,of an amateur

• (a)whose sole or main object is to foster and control any outdoor
• sport:and
• (b)whose members consist only of amateurs or affiliated associations
• the membersofwhich consistonly of amateurs:and
• s defining an amateur or a professional and providing that no person may be or continue to be a member of such association if suchperson is not an amateur.
• 13.The income of any registered trust scheme.
• 51.Interest income accruing from all listed bonds,notes or other similar securities used to raise funds for infrastructure and other social services,provided that such bonds,notes or securities shall havea maturity of at least threeyears.
• 53.Monthly pension granted to a person who is sixty-five years of
• age or more.
• 57.The income or principal sum of aregistered family trust.
• 57.The income of the National HousingDevelopment Fund
• 58.Income earned by an individual who isregistered under theAjira
• Digital Program for threeyears beginning 1st January,2020;

Provided that-

• (a)the individual shall qualify for the exemption upon payment of
• registration fee of ten thousand shillingsper annum;and
• (b) the Cabinet Secretary shall,in consultation with the Cabinet Secretaryfortheministryresponsibleforinformationcommunication technology.issue regulations for the better carrying out of this provision.
• 58.Any capital gains relating to the transfer of title ofimmovable
• property to a familytrust.
• 59.The amount withdrawn from the National Housing Development Fund to purchasea houseby a contributor who isa first-time homeowner.
• 60.Interest income accruing from all listed bonds,notes or other similar securities used to raise funds for infrastructure,projects and assets defined under Green Bonds Standards and Guidelines,and other social services:Provided that such bonds,notes or securities shall have a maturity ofat least threeyears.

• 71.Income earned by anon-resident contractor,sub-contractor, consultantor employeeinvolved in the implementation of aproject financed through a one hundred percent grant under an agreement between the Government and the development partner,to the extent provided for in the Agreement:

Providedthatthe non-residentis in Kenya solely for the implementation ofthe projectfinanced by the onehundred percent grant.

• 72.Gains on transfer of property within a special economie zone
• enterprise,developer and operator.

Second scheduletoCap470 it isproposed toamend-

SECONDSCHEDULE

INVESTMENTALLOWANCE

• (c)Purchase or an acquisition of an indefeasible right to use fibre optic cableby atelecommunication operator %01 per year,in equal instalments

Third SeheduletoCap470 it isproposed to amend-

THIRDSCHEDULE

[ss.29.30.31.32.33,34and35]

RATESOFPERSONALRELIEFSANDTAX

HEADA-RESIDENTPERSONALRELIEF

• 3.Affordable housing relief

The amount ofaffordable housingreliefshall be I5% of the

employee'scontributionbut shall notexceedKsh.108.000 per annum.

• 4.Post-retirementmedical fund relief

The amount ofpost-retirementmedical fundrelief shall be fifteenper

cent ofthe amount of contribution paid or sixty thousand shillingsper annum.whichever is lower.

HEADB-RATESOFTAX

• 2.The corporate rate oftax shall be
• )in thecase of a company that constructed at least four hundred residential units annually.fifteen per cent for that year of income, subject to approval by the Cabinet Secretary responsible for
• housing.

[ss.4.5and15]

Provided that where a company is engaged in multiple activities which include the ones specified in subparagraph (i),the rate of fifteen per cent shall be appliedproportionately to theextent of the turnover arising from the housingactivity

• 3.The non-resident tax rates shall be-
• (k)inrespect of gains or profits from the business ofa ship-owner which is chargeable to tax under section 9(1)of the Act,two and a half per cent of thegross amountreceived;
• (t)in the case of digital content monetisation,twenty percent of the
• grossamount;
• 5.Theresident withholding tax rates shall be
• (b) in respect of interest,discount or original issue discount arising
• -uo
• (i)bearer instrument other than a Government bearer bond of at least rwo years duration.twenty-five per cent;
• (ii) Government Bearer Bond of at least two years duration and
• other sources,fifteen per cent;
• (ii)bearer bonds with a maturity of ten years and above,ten per
• cent of the gross amount payable,of the gross amount payable;
• (d)(i) in respect of a payment of a pension or any withdrawal made after theexpiry of fifteenyearsfrom the date of joining thefund, or on the attainment ofthe ageof fifty years,or upon earlier retirement on thegrounds of ill-health or infirmity of body and mind,from a registered pension fund,registered provident fund, the National Social Security Fund or a registered individual retirement fund,in excessof the tax free amounts specified under section 8(4)and 8(5)in any one yearand,provided that tax has not been deducted under section37-
• ((i) in respect ofmanagement or professional fee or training fee, other than contractual fee,the aggregatevalue ofwhich is twentyfour thousand shillings in a month or more,five per cent of the grossamount payable:
• (f)(ii)(i)in respect of contractual fee the aggregate value of which
• istwenty-four thousand shillings in a month or more,three per cent of thegross amountpayable:
• (jb)inrespect to thedisbursement of deemed incometo beneficiaries
• under section 11(3)(c)therateoftwenty fivepercent.

• 12.Therate of tax in respect of digital service tax under section 12E shall be onepoint fiveper cent of thegross transaction value.

EighthScheduleto Cap.470itisproposed toamend-

EIGHTHSCHEDULE

[ss.3and15]

ACCRUALANDCOMPUTATIONOFGAINSFROMPROPERTY INDIVIDUALS

PartI

• 1.Interpretation

"company"includes-

• (a)a membersclub deemed under section 2l(1)to be carrying on a business:
• (b)a trade association that elects under section 2l(2)tobe deemed to carry on a business;
• (3)For the purposes of this Schedule two persons are related persons"if-
• (a)either person participates directly or indirectly in themanagement, control or capital of the business of the other,or
• (b)anythird person participates directly or indirectlyin the management,control or capital ofthe business ofboth.
• 6.Meaning of transfer
• (2)There is no transfer of property for the purposes of this Schedule-
• (h) by the transfer of assets-
• (i)between spouses:
• (ii)between former spouses aspart of a divorcesettlement ora
• bona fide separation agreement;
• (iii)to immediate family:
• (iv)to immediate family as part of a divorce or bona fide
• separation agreement:or
• (v)to a company where spouses ora spouse and immediate
• familyhold100%shareholding;

Eleventh scheduletoCap.470it isproposed toamend-

ELEVENTHSCHEDULE

TAXATIONOFEXPORTPROCESSINGZONEENTERPRISES

• 4.Notwithstanding that an export processing zone enterprise will be
• exempted from paying any corporation tax for the period specifiedin subparagraph 2(f)oftheThird Schedule.theenterprisewill nonethelessbe required tocomplywithPart Vlllofthe Actandwill submitan annual return ofincomeunder Section 52orareturn ofincome,together with a self-assessment of tax under section 52B and businessaccounts under Section 54as is the case with all liable enterprises,and in the event of failure to submit a return orlate submission of a return,the enterprise will beliabletoapenalty of two thousandshillingsper day for aslong asthe failure continues.

Section8of Cap.476it isproposed to amend-

• 8.Place ofsupply of services
• (1)A supply of services ismade inKenya if theplace of business of thesupplier from which the services are supplied isinKenya.
• (2)If the place of business of the supplier isnot inKenya.the supply ofservices shall be deemed to bemadein Kenya if therecipient of the supplyisnot aregisteredperson and-
• (a) the services arephysicallyperformed imKenyaby a personwho is inKenya at the time of supply;
• (b)theservices are directly related to immovable property inKenya;
• (c)the services areradio or television broadcasting services received at an address inKenya:
• (d)the services are electronic services delivered toa person in Kenya at the time ofsupply;or
• (e)the supply is a transfer or assignment of,or grant of a right to use, a copyright,patent,trademark,or similar right inKenya.
• (3)In this section-

"electronic services"means any of the following services,when provided ordelivered onor through atelecommunicationsnetwork-

• (a)websites,web-hosting,or remote maintenance of programs and equipment:
• (b)software and the updating of software:

• (e)images.text,and information:
• (d)access to databases:
• (e)self-educationpackages:
• ()music,films,and games,including games of chance;or
• (g)political,cultural,artistic,sporting,scientific andotherbroadcasts and events includingbroadcast television.

Section 12ofCap.476it isproposed toamend

• 12.Timeof supply ofgoods and services
• (1) Subject to subsection (3),the time of supply.including a supply ofimported services,shall be the earlier of-
• (a)the date on which thegoods are delivered or servicesperformed;
• (b)the date a certificate is issued by an architect,surveyor or any other person acting as a consultant in a supervisory capacity;
• (c)the date on which the invoice for the supply isissued;or
• (d)the date on which payment for the supply is received,in whole or inpart.
• (2)The time of supply of goods by means of a vending machine, meter,or other device operated by use of a coin,note,or token shall be on the date the coin,note,or token is taken from the machine,meter,or other deviceby or on behalf of the supplier.
• (3)If-
• (a)goods are supplied under a rental agreement;or
• (b)goods or services are made by metered supplies,or under an agreement or law thatprovides for periodicpayments,the goods orservicesshall betreatedassuccessivelysupplied forsuccessive partsof theperiod of the lease or agreement,oras determined by law,and the time of each successive supply shall be the earlier of the date on which payment for the successive supply is due or received.
• (4)The time of supply of imported goods shall be-
• (a)in the case of goods cleared for home use directly at the port of importation,orgoodsenteredforremoval toan inlandstation and therecleared for home use,at the time of customsclearance;

• (b)in the case ofgoods removed to a licensed warehouse subsequent to importation,at the time of final clearance from the warehouse forhome use;
• (c)in the case ofgoods removed from an export processing zone or a special economiczone,at thetime ofremoval for homeuse:
• (d)in any other case,at the time the goods arebrought into Kenya.

Section17ofCap476itisproposed-

• 17.Credit for input taxagainstoutput tax
• (1)Subject to the provisions of thisAct and theregulations,input tax ona taxable supply to,or importation madeby.aregisteredpersonmay.at the end of the taxperiod inwhich the supply or importation occurred,be deducted bytheregisteredpersonin a returnfortheperiod.subject tothe exceptionsprovided under thissection,from thetaxpayableby theperson on suppliesbyhim in that taxperiod,but only to theextent thatthe supply orimportation was acquiredtomaketaxable supplies.
• (2)If,at the time when a deduction for input tax would otherwise be allowableunder subsection(l)-
• (a)the person does nothold the documentation referred to in subsection(3),or
• (b)the registered supplier has not declared the sales invoice ina return.the deduction for input tax shall not beallowed until the first taxperiod inwhich theperson holds suchdocumentation:

Provided thattheinput tax shall be allowable for adeduction within six months after the end of the tax period in which the supplyorimportation occurred.

• (3)The documentation for the purposes of subsection(2)shall be
• (a) an original tax invoice issued for the supply or a certified copy;
• (b)a customs entry duly certified by theproper officer and a receipt forthepaymentof tax:
• (c)a customs receipt and a certificate signed by the proper officer stating the amount of tax paid,in the case of goods purchased froma customsauction,and
• (d)a credit note in the case of input tax deducted under section 16(2);
• (e)a debit note in the case ofinput tax deducted under section 16(5):or

• (fin the case of a participant in the Open Tender System for the importationofpetroleumproducts thathavebeen cleared through anon-bonded facility,the custom entry showing the nameand PIN ofthe winner of the tender and the name of the other oil
• marketingcompanyparticipatingin the tender:

Provided that the input tax that may have been incurred by an oil

marketing company participating in the Open Tender System before thecoming into forceofthisprovision shall be claimed withintwelve months after this provision comes into force.

• (4)A registered person shall not deduct input taxunder this Act if the taxrelates to the acquisition,leasing or hiring of-
• (a)passenger cars or mini buses,and the repair and maintenance thereof including spare parts,unless the passenger cars or mini buses are acquired by the registered person exclusively for the purpose ofmakinga taxable supply of thatautomobile in the ordinary course of a continuous and regular business of sellingor dealing in or hiring of passenger cars or mini buses;or
• (b)entertainment.restaurant and accommodation services unless-
• (i)the services areprovided in the ordinary courseofthebusiness carried on by the person to provide the services and the services arenot supplied to an associateoremployee;or
• (ii)the services are provided while the recipient is away from home for the purposes of the business of the recipient or the recipient'semployer:

Provided that no tax shall be charged on the supply where no input tax deduction wasallowed on that supply under this subsection.

• (5)Where the amount of input tax that may be deducted bya registered person under subsection (l) in respect ofa taxperiod exceeds theamount ofoutput tax duefor theperiod.the amount of the excessshall becarried forward as input tax deductibleinthenext taxperiod:

Provided that any such excess shall bepaid to theregisteredperson

bythe Commissioner where-

• (a) such excess arises from making zero rated supplies:or
• (b)such excess arises from tax withheld by appointed tax withholdingagents:and
• (c)such excess arising out of tax withheld by appointed tax

thisAct or any otherwritten law,or is due for refund pursuant to section 47(4)of theTax Procedures Act (Cap.469B):

• (d)theregistered person lodges the claimfortherefund of the excess taxwithin twenty-fourmonths from thedatethetaxbecomes due andpayable;and

Provided further that.notwithstanding section 17(5)(d).a registered person who,within a period of thirty-six months prior to the commencement of section 17(5)(b)and (c),has a credit arising from withholding tax,may make an application for a refund of the excess taxwithin twelvemonthsfromIstJuly 2022.

• (e)such excess arises from input tax under subsection(8):

Provided that a registered person who,since the commencement of

subsection (8)but before the commencement of this provision.hasa refundofexcesstaxwithintwelvemonthsfromlstJuly2022

• (6)Subject to this Act.ifa taxable supply to.or a taxable import by.a supplies and partly for another use,theinput tax deductible by the person for acquisitionsmadeduringthetaxperiodshall bedetermined asfollows
• (a)full deduction of all the input taxattributable to taxable supplies;
• (b)no deduction of any input tax which is directly attributable to other use:and
• (c)deduction of input tax attributable to both taxable supplies and other uses calculated according to the followingformula:

AxB

C

where-

A is the total amount of input tax payable by the person during the taxperiod on acquisitions thatrelatepartly tomaking taxablesupplies and partlyforanotheruse;

B is the value ofall taxable suppliesmade by theregistered person

duringtheperiod;and

Cis thevalue of all suppliesmade by theregisteredperson during the

period in Kenya.

• (7)If the fraction of the formula in subsection(6) for a taxperiod-

• a)is more than 0.90,the registered person shall be allowed an input taxcredit for all oftheinput tax comprisingcomponentAof the formula:or
• (b)is less than 0.10,the registered person shall not be allowed any input tax credit for theinput tax comprising component A of the formula.
• (8)Notwithstanding theprovisions of thissection,a registered person who isamanufacturermaymakea deduction forinput taxwith respect to taxablesuppliesmade toanofficial aid fundedprojectasmaybe approved bythe CabinetSecretaryin accordance with theFirstSchedule.

Section31ofCap476it isproposed toamend-

• 31.Refund of tax onbad debts
• (1)Where a registered person hasmade a supply and has accounted forandpaid taxon thatsupplybuthasnotreceived any paymentfrom the personliable to pay the tax,hemay,after a period of threeyearsfrom the date of that supply or where thatperson has become legally insolvent. apply to the Commissioner for a refund of thetaxinvolved and subject to the regulations,the Commissioner may refund the tax:

Provided that no application for a refund shall be made under this section after theexpiry of fouryearsfrom the date of the supply

• (2)Where the tax refunded under subsection (1) is subsequently recovered from the recipient of the supply,the registered person shall refund the tax to the Commissioner within thirty days of the date of the recovery.
• (3)Ifpayment isnot madewithin the time specified undersubsection (2),an interest of two per cent per month or part thereof of the tax refundedshall forthwithbe due andpayable:

Provided that the interest payable shall not exceed one hundred per centoftherefunded amount.

Section34ofCap476itisproposed toamend-

• 34.Application forregistration
• (1)A person who in the course of a business-
• (a)hasmade taxable supplies or expects tomake taxable supplies,the value ofwhich isfivemillion shillings or more in any period of twelve months:or
• (b)is about to commencemakingtaxablesuppliesthevalueofwhich is reasonably expected to exceed five million shillings in any

period oftwelvemonths,shall beliableforregistration under this Act and shall,within thirty days of becoming so liable,apply to the Commissioner forregistrationin theprescribed form:

Provided that this section shall not apply to persons supplying importeddigitalservicesover theintermetor anelectronicnetworkor through a digitalmarketplace in respect to a turnover threshold of five million shillings.

• (2)In determining whether a person exceeds the registration threshold for a period,the valueofthe following taxable suppliesshall be excluded-
• (a)a taxable supply of a capital asset of theperson;and
• (b)a taxable supply made solely as a consequence of the person selling thewhole or a part of the person's business or permanently ceasing to carry on theperson'sbusiness.
• (3)Notwithstanding subsection(I),aperson who makes or intends to make taxable supplies may apply.in the prescribed form,to the Commissioner forvoluntaryregistration.
• (4)The Commissioner shall register a person who has applied for voluntary registration under subsection(3)if satisfied that-
• (a)theperson is making,or shall make taxable supplies;
• (b)the person has a fixed place from which the person's business is conducted;
• (c)if the person has commenced carrying on a business,the person-
• (i)haskeptproperrecords ofits business;and
• (i) has complied with its obligations under other revenue laws; pue
• (d)there arereasonable grounds to believe that theperson shall keep properrecords andfileregularandreliabletaxreturns.
• (5)The Commissioner shall issue a registered person with a tax registration certificateintheprescribedform.
• (6)If the Commissioner is satisfied that a person eligible to apply for registrationhas not done so within the time limit specified in subsection (1),the Commissioner shall register theperson.
• (7)Theregistration ofa personunder subsection(1)or(6)shall take effectfrom thebeginningof thefirst taxperiod after thepersonisrequired

to apply for registration,or such later period as may be specified in the person's taxregistration certificate.

• (8)The registration ofa person under subsection (4) shall takeeffect from the date specifiedin theperson'staxregistration certificate.
• (9)The Cabinet Secretary may.in regulations,provide for the
• registration of a group ofcompanies as one registeredperson for the purposes of the Act.

FirstScheduletoCap.476iiisproposed toamend-

FIRSTSCHEDULE

[s.2(1)]

EXEMPTSUPPLIES

PARTI-GOODS

SECTIONA

Tariff Number Description

8802.30.00 Aeroplanes and other Aircrafts on unladen weight exceeding 2.000 kgs butnot exceeding

15.000kgs

8802.60.00 Spacecraft (including satellites)and suborbital and spacecraft launch

Gluten bread.

Unleavened bread.

• 49.Aircraft parts of heading 8803,excluding parts of goods of heading8801
• 54.Goods importedor purchased locally for use bythe local film producers and local filming agents,upon recommendation by theKenya Film Commission,subject to approval by the Cabinet Secretary to the National Treasury.
• 57.All goods including material supplies.equipment,machinery and motor vehicles.for official use by the Kenya Defence Forces and the NationalPoliceService.
• 58.Direction-finding compasses,instruments and appliances for aircraft.
• 62.Taxable goodsfor direct and exclusive usefor the construction of tourism facilities,recreational parks offifty acres or more,convention and

conference facilities upon recommendation by the Cabinet Secretary

responsibleformattersrelatingtorecreationalparks.

For the purposes of this paragraph.recreational parks"means an area or a building whereaperson canvoluntarilyparticipatein aphysical Ormental activity for enjoyment,improvement of general health,wellbeingand the developmentofskills.

• 63.Deleted by Act No.22of2022,s.30(a)(ii)

Provided that notwithstanding this subparagraph,any approval granted by the CabinetSecretary before the commencement thereof inrespectofthesupplyoftaxablegoods andwhichisinforceat such commencement shall continue to apply until the supply of the exempted taxablegoods is madein full.

• 77.Pressure sensitive adhesive of tariffnumber 3506.91.00.
• 78.Plain polythenefilm/LPDEof tariffnumber3921.19.10
• 79.Plainpolythenefilm/PEof tariffnumber3921.19.10
• 80.PEwhite25-40gsm/releasepaperof tariffnumber4811.49.00.
• 81.ADL25-40gsmof tariffnumber5603.11.00
• 91.Specially designed locallyassembled motor vehicles for transportation of tourists.purchased before clearance through Customs by tour operators upon recommendation by the competent authority responsible for tourism promotion.provided the vehicles meet the followingconditions-
• (i)the vehicles shall at all times beregistered and operated by a
• company thatislicenced under the TourismVehicleRegime;
• (ii)the vehicles shall be used exclusively for the transportation of
• tourists:
• (i)the vehicles shall have provisions for camping,rescue and first aid equipment,luggage compartments and communication
• fittings:and
• (iv)any other condition the Commissionermayimpose:

Provided that tax shall become payable upon change of use or disposalof thevehicleforotheruse.

• 107.Plant,machinery and equipment used in the construction of a plastics recycling plant.

• 110.Musical instruments and othermusical equipment,imported or
• purchased locally,for exclusive use by educational institutions,upon recommendation by the Cabinet Secretaryresponsible forEducation.
• 113.Specialized equipment for the development and generation of solar and wind energy,including photovoltaic modules,direct current charge controllers,direct current inverters and deep cyclebatteries that use or store solar power,upon recommendation to the Commissioner by the
• CabinetSecretaryresponsible formattersrelating to energy.
• 114.Taxable goods supplied to persons that had an agreement or contractwith theGovernmentpriorto25th April 2020 and theagreement
• or contractprovided for exemption from valueadded tax:Provided that this exemption shall apply to the unexpired period of the contract or agreement and uponrecommendation by the Cabinet Secretaryresponsible for mattersrelating to energy.
• 145.Taxable goods,inputs andrawmaterials importedorlocally purchased bya company which is-
• (a)engaged inbusiness under a special operating framework arrangementwith the Government;and
• (b)incorporatedforpurposesofundertakingthemanufacture of human vaccines or other manufacturingactivities including refining:and whose capital investmentis at least ten billion shillings,subjectto approval of theCabinet Secretaryfor the National Treasury,on recommendation of the Cabinet Secretary
• for health.
• 146.Such capital goods the exemption of which the Cabinet Secretary may determine to promote investment in the manufacturing sector:

Provided that the value ofsuch investment isnot less than two billion shillings.

SECTIONB-EXEMPTGOODSONTRANSITION

• (1)The following goods shall be exempt supplies for a period of threeyearsfrom the commencement of this Actunlesstheexempt status of the supplies isearlier revoked-
• 2709.00.00Petroleumoilsandoils obtainedfrom bituminous
• minerals,crude.

2710.12.10Motor spirit (gasoline)regular

2710.12.20Motor spirit (gasoline).premium.

• 2710.12.30Aviation spirit
• 2710.12.40 Spirit type jet fuel.
• 2710.12.50Specialboilingpoint spirit andwhite spirit.

2710.12.90 Other light oilsandpreparations.

2710.19.10 Partly refined (including topped crudes).

2710.19.21Kerosene type jet fuel.

2710.19.221lluminatingkerosene(IK)

• 2710.19.29 Othermediumpetroleum oilsandpreparations.
• 2710.19.31 Gas oil (automotive.light,amber,for high speed
• engines).
• 2710.19.39 Othergas oils.
• 2711.21.00Natural gas in gaseous state
• 2711.29.00 Other natural gas in gaseous state.
• (2)Notwithstanding paragraph(1).the exemption shall be extended by a furthertwoyearsfrom IstSeptember.2016.

PARTII-SERVICES

The supply of the following services shall be exemptsupplies-

• 1.Thefollowing financial services-
• (a)the operation of current,deposit or savings accounts,including the provision of account statements:
• (b) the issue,transfer,receipt or any other dealing with money.
• including money transfer services,and accepting over the counter payments of household bills,but excluding the services of carriage ofcash,restocking of cash machines,sorting or counting ofmoney;
• (c)issuing of credit and debit cards:
• (d)automated teller machine transactions,excluding the supply of automated tellermachines and the software to run it;
• (e)telegraphicmoney transfer services:
• (f)foreign exchange transactions,including the supply of foreign draftsand international money orders:
• (g)cheque handling.processing.clearing and settlement,including special clearance or cancellation ofcheques:

• (h)the making of any advances or the granting of any credit;
• (i issuance of securities for money,including bills of exchange,
• promissory notes,money and postal orders;
• (j)the provision ofguarantees,letters of credit and acceptance and otherformsof documentarycredit:
• (k)the issue.transfer,receipt or any other dealing with bonds,Sukuk,
• debentures,treasury bills,sharesand stocksand other forms of security orsecondary security:
• (l)the assignment ofa debt for consideration;
• (m)The provision of the above financial services on behalfof another on a commission basis.
• (n)deleted by Act No.10of 2018,s.19(b)(i).
• (o)any services set out in items (a)to (n) that are structured in conformity withIslamicfinance.
• 2.Insuranceandreinsurance servicesexcluding thefollowing
• (a)management and related insurance consultancy services.
• (b)actuarial services;and
• (c)services ofinsurance assessors and loss adjusters.

SecondscheduletoCap476itisproposed toamend-

SECOND SCHEDULE

[s.7(2)]

ZERO-RATING

PARTA-ZERORATEDSUPPLIES

Where the following supplies,excluding hotel accommodation,

restaurant or entertainment services where applicable,take place in the course ofa registered person's business,they shall be zero rated in accordance with theprovisions of section7-

• 16.All inputs and raw materials whether produced locally or imported,supplied tomanufacturersofagriculturalpestcontrol products upon recommendation by the Cabinet Secretary for the time being responsiblefor agriculture.
• 19.Agricultural pest control products.
• 21.Transportation of sugarcanefrom farms to millingfactories.

• 26.Inbound international seafreight offered byaregisteredperson
• 29.The supply of locally assembled and manufactured mobile phones.
• 30.The supply of motorcycles of tariff heading 8711.60.00
• 31.The supply ofelectricbicycles
• 32.The supply of solar and lithium ion batteries.
• 33.The supplyofelectricbuses of tariff heading87.02
• 34.Taxableservices imported or locally purchased by a company
• which-
• (a)is engaged in business under a special operating framework arrangementwith theGovernment:and
• (b)is incorporated for purposes of undertaking the manufacture of
• human vaccines or other manufacturing activities including refining:and whose capital investment is at least ten billion shillings.subject to approval of the Cabinet Secretary for the National Treasury.on recommendation of the Cabinet Secretary for health.
• 35.Bioethanol vapour (BEV) Stoves classified under HS Code
• 7321.12.00(cooking appliancesandplate warmers for liquid fuel).

Section2ofCap.472itisproposed toamend-

• 2.Interpretation
• (1)In this Act,unless thecontext otherwiserequires-

"approved formshall have the meaning assigned to it under the Tax

ProceduresAct(Cap.469B);

beinigs or goods;

"arm's length transactionmeans a transaction between persons

dealingwith each otherat arm's length:

"authorisedofficer" meansanofficerauthorised by the Commissioner for thepurposesof this Act;

"betting" shall have the meaning assigned to it under the Betting.

Lotteries and Gaming Act (Cap.131);

"bookmakershall have themeaning assigned to it under section 2of the Betting,Lotteries and Gaming Act (Cap.131);

"Cabinet Secretary"means the Cabinet Secretary for the time being

responsible for mattersrelating tofinance;

"Commissioner"means the Commissioner-General appointed under

theKenya Revenue Authority Act(Cap.469):

compoundhas the meaning assigned to it in section 2of the

Compounding of Potable Spirits Act(Cap.123);

"concessional loan"means a loan with at least twenty-five percent grantelement:

"denature"means to render unfit for human consumption;

"distillery"means a licensed distiller's factory;

"duty of customs"means import duty,countervailing duty.or surtax

charged under the East African Community Customs Management Act, 2004:

"ex-factory selling pricehas the meaning assigned to it in section 11:

"excisable goods"means the goods specified in Part Iof the First

Sehedule:

"excisable services"means the services specified in Part Il of the FirstSchedule:

"excise controlhas the meaning assigned to it in section 23:

"exempt goodsmeans goods specified in the Second Schedule;

"export"means to take or cause to be taken fromKenya to a foreign

country,aspecialeconomiczoneorto an export processingzone:

"export processing zone"has the meaning assigned to it in section 2 of the Export Processing Zones Act(Cap.517);

"factory"means any premises at which a licensed manufacturer is

licensed to manufacture and store excisable goods,but does not include any part of the premises throughwhich excisable goodsare sold to the public:

importmeans to bring or cause goods to be brought into Kenya from a foreign country,a special economic zone oran export processing zone;

importer"in relation to goods,means the person who owns the goods,or any other person who is,for the time being.inpossession of or beneficially interestedin thegoodsat the time ofimportation;

international traffic",in relation to an aircraft or vessel,means any

operation of the aircraft orvessel,except asbetween twoplacesinKenya;

"international organization shall have the meaning assigned to it

under theTaxProcedures Act (Cap.469B):

"licence"

• (a)in the case of excisable services,meansthe certificate of registration;
• (b)in the case of excisable goods,means the licence issued under
• section17,or
• (c)in the case of any activity under section 15(1)(e),means the licence

required thereunder:

• "licensed distiller"means a distiller licensed under section 17;

"licensed manufacturermeans a person licensed under section 17 t0 manufactureexcisablegoods;

• "licensed person"means a person licensed orregistered under section 17:

"manufacture"includes-

• (a)theproduction ofexcisablegoods:
• (b)any intermediate or uncompleted process in the production of excisable goods;or
• (c)the distilling,rectifying,compounding,or denaturing of spirits;

"open market value"has the meaning assigned to it in section 3;

"official aid funded project"means a project funded by means of a grant orconcessional loan inaccordance with anagreementbetween the organizationor anyother aid agency;

"possessionmeans having,owning or controlling any excisable

goods

including-

• (a)having in one'spossession any excisable goods;

• custody of any otherperson;
• (c)having any excisable goods in any place,whether belonging to or occupied by oneself ornot,for theuse orbenefit of oneself:or
• (d)having any excisable goods for the use or benefit of another
• person:

Provided that ifthere aretwo ormorepersons and any of themwith

the knowledge or consent of the others has any excisable goodsin his custody or possession,such goods shall be deemed to be in the custody andpossession of all of them;

"prescribed"means prescribed in theRegulations;

"rectify"means toredistill spiritsremoved from a spirits receiver for

the purpose of purifying or inserting flavour;

"special economiczoneshall havethemeaning assigned toit under

the Special EconomicZones Act(Cap.517A);

"spiritsmeans spirits of any description and includes all liquor mixed with spirits and allmixtures and compoundsorpreparations made with spirits,but doesnot include denatured spirits;

stillmeans a distilling apparatus and includes any part of a still;

storesmeans goods for use or consumption by passengers or crew on an aircraft or ship while ininternational traffic,and includesgoods for sale onboard such aircraft orvessel;

"supply",in relation to services,has the meaning assigned to it under the Value Added TaxAct (Cap.476);

"tax law" shall have the meaning assigned to it under the Tax

ProceduresAct(Cap.469B);

"the Regulationsmeans regulations made under this Act;

"time of importation"has the meaning assigned to it meaning in section4(2);

"ime of supply"inrelation to excisable services,has the meaning in section4(1):

"unexcisable goodsmeans goods that are not excisablegoods;

"unexcised goods or servicesmeans excisable goods or services liable for excise duty but,in respect of which,the full amount of excise duty due has not been paid;

• "value added tax"means the value added tax imposed under the
• ValueAdded Tax Act (Cap.476):

"vesselmeans every deseription of conveyance by water ofhuman

beingsor goods.

• (2)Except when the context otherwise requires,the termsapproved form""international organisation";"person","related person",and"tax law"have the meanings assigned to them under the Tax Procedures Act (Cap.469B).

Section5ofCap.472it isproposed toamend

• 5.Imposition of excise duty
• (1) Subject to this Act,a tax,to be known as excise duty,shall be chargedin accordancewith the provisionsofthisAct on-
• (a)excisable goodsmanufactured inKenya byalicensed
• manufacturer;
• (b)excisable services supplied inKenya by a licensed person;or
• (c)excisable goods imported intoKenya.
• (2)Excise duty shall be charged at the rate specified in the First
• Schedule for the excisable goods or services in force at the time the liability arises for excise duty as determined under section 6.
• (3)The excise dutypayable-
• (a)under subsection (l)(a).shall be payable by the licensed manufacturer;
• (b)under subsection (1)(b),shall be payable by the licensed person making the supply:or
• (c)under subsection (I)(c),shall be payable by the importer of the excisablegoods.

Section7of Cap.472itisproposedtoamend

• 7.Goodsandservicesnot liable to excise duty
• (1)Subject to this section,no excise duty shall be charged on the
• following
• (a)exempt goods which meet theconditions set oul in the Second
• Schedule:
• (b)excisable goods exported under customs control,including as stores:

• (c)excisable servicesexportedfromKenya:
• (d)excisable goods that the manufacturer has destroyed,with the prior written permission of the Commissioner,under the supervision ofan authorised officer prior to theirremovalfrom the factory in which they weremanufactured:
• (e)denatured spirits for use in the manufacture of gasohol or as a heating fuel;
• (f)excisable goods that have been lost or destroyed by accident or other unavoidablecause-
• (i)in the course ofremoval of the goods by themanufacturer
• from the manufacturer's factory including when loading or unloading the goods:
• (i)in the factory of the manufacturer in which the goods were
• manufactured before removal from thefactory;or
• (ii)on board an aircraft orvessel prior to importationintoKenya.
• (2)The Cabinet Secretary may by notice in the Gazette,grant remission of excise duty,wholly or partially,in respect of beer or wine madefrom sorghum,millet or cassava or any other agriculturalproducts (excluding barley).grown inKenya.
• (3)The Gazette notice issued under subsection (2),shall specify the products and conditionstobemet fortheremissions tobegranted.
• (3A)Anotice under subsection(2)of this section shall belaid before theNational Assembly without unreasonable delay,and aresolution may be passed by theNational Assembly within twenty-one dayson whichit next sits after the notice is so laid,that the notice-
• (a)be approved:or
• (b)be annulled and it shall thenceforth bevoid,but without prejudice to thevalidity of anything previously done thereunder,or to the issuing ofa newnotice.
• (4)Excisable services shall be considered to be exported fromKenya if the services are supplied from aplace ofbusiness inKenya for
• use or consumption outsideKenya.
• (5)An exemption granted under this section shall apply if the Commissionerissatisfied that-
• (a)the goodsreferred to in subsection (l)(a)have been received and consumedby the exemptperson;and

• (b)excisable goods or services for export under subsections (1)(b) and
• (e)have not been,and shall not be consumed in Kenya.
• (6)Subsection (1)(f)(i)and (i)shall not apply if the licensed manufacturer has been compensated for the loss of the excisable goods and the compensation includes the excise duty payable on the goods,as a consequence of any of the following-
• (a)an insurance policy.indemnity.or other agreement;
• (b)a settlement;or
• (c)a judicial decision.

Section14ofCap472itisproposed toamend-

• 14.Relief for raw materials
• (1)Where excise duty has been paid in respectof excisable goods imported into,ormanufacturedinKenya by a licensed manufacturer and which havebeen used asrawmaterials in the manufacture of other excisable goods (hereinafter referred to as"finished goods"),theexcise duty paid on the rawmaterials shall be offset against the excise duty payable on the finished goods.
• (2)Where excise duty has been paid in respect of internet data servicesby a licensed personwho purchases the data in bulkforresale,the excise duty paid shall be offset against the excise duty payable by that person oninternet data servicessupplied to thefinal consumer.

Section17of Cap.472it isproposed toamend-

• 17.Issue of licence
• (1)Subject to subsection (2),the Commissioner shall consider an application under sectionl6 and may grant orrefuse to issue the applicant with a licence.
• (2)The Commissioner may refuse an application under section 16if satisfied that-
• (a)the applicant hasbeen convicted of an offence under this Act or the TaxProceduresAct(Cap.469B):
• (b) the applicant has been convicted of an offence involving dishonesty orfraud under any law;
• (c)the applicant-
• (i)is orhasbeen declared bankrupt orinsolvent;or

• (ii)is in theprocessof liquidation or receivership;
• (d)in the case of an application to be a manufacturer of excisable
• goods,the factory,plant or equipment,specified in the application isnot adequate to manufacture or secure excisable goods;
• (e)the applicant hasnot keptproperrecords asrequired under any tax laworhasotherwisefailed to complywithits obligations under a taxlaw;or
• (f)paragraphs (a),(b).(c)or (e)apply to a person related to the applicant and the Commissioner is satisfied that the related person is reasonably expected to be involved in the conduct of the
• activity to which theapplication relates.
• (3)The Commissioner may impose such terms,conditions or
• restrictions asthe Commissioner considers appropriate in relation to a licence issued under this section.
• (4)The Commissioner shall give an applicant fora licence under section16 written notice of thedecision on the application and if the
• application is refused,the notice shall include reasons for the refusal.
• (5)A licence shall takeeffect from the date specified thereinby the
• Commissioner and shall unless earlier suspended,remain in force until cancelled under section 21.
• Section36ofCap.472it isproposed to amend
• 36.Paymentofexcise duty
• (1)Theexcise dutypayable bya licensed manufacturer inrespect of excisablegoodsremoved from amanufacturer'sfactory duringa calendar month shall bepaid notlater than the twentieth day of the succeeding month.
• (1A) Despite subsection(1),in the case of a licensed manufacturer of alcoholic beverages,excise duty shall be payable to the Commissioner within twenty-fourhours.uponremovalof thegoodsfrom thestockroom.
• (2)The excise duty payable by a supplier of excisable services in respect of supplies of excisable services made by the supplier duringa
• calendar month shall be paid not later than the twentieth day ofthe succeeding month.
• (3)The excise duty payable by an importer in respect of the
• importation of excisable goods into Kenya shallbe paidto the Commissioner atthe time ofimportation.

• (4)For the purpose of assessing,collecting,accounting and enforcing
• the payment of excise duty on the importation of goods into Kenya,the EastAfrican Community Customs Management Act,2004 shall apply as ifexcise duty were customs duty:

Providedthat-

• (a)the Tax Procedures Act(Cap.469B),shall apply with regard to
• imposition ofinterest andpenalties:and
• (b)in cases where interest becomes payableit shall not,in aggregate, exceed the principal tax.
• (5)The Commissioner shall pay into the Sports,Arts and Social DevelopmentFund establishedunder thePublicFinanceManagementAct (Cap.412A),to support social developmentincluding universal health care sixteenpercent of the excise dutypaid in respect ofmoney transferby cellularphoneserviceproviders.

FirstScheduletoCap.472itisproposedtoamend-

FIRSTSCHEDULE

RATESOFEXCISEDUTY

• 1.Subject toparagraph 2,therates of excise duty on excisable goods
• are asset out in thefollowing table:

PartI-EXCISABLEGOODS

Motor cyclesoftariff87.11 other than motor cycle ambulances and locally assembledmotor cycles

Imported cement

Imported cartons,boxes and casesof corrugated paperor paper board and imported folding cartons,boxes and case ofnon-corrugatedpaper orpaper board and imported skillets, free-hinge lid packets of tariff heading 4819.10.00,4819.20.10

and4819.20.90,

Imported onions of tariff heading07.03

KSh.12.952.83per unit

10%of the valueor shs.1.50 per

kg,whicheverishigher

25%

25%

[s.5(2)]

Imported potatoes,potato crisps heading07.01andimported numbers 0710.10.00. 2004.10.00 pue

andpotatochipsoftariff potatoesoftariff 2005.20.00

Imported Articles ofplastic oftariff heading3923.30.00 and10% 3923.90.90

Imported sugar confectionary of tariff heading 17.04

Wines including fortified wines. and other alcoholie beverages obtainedbyfermentationof fruits

Beer,Cider,Perry,Mead. Opaque beer and mixturesof fermented beverages with nonalcoholic beverages and spirituousbeverages of alcoholic strength not exceeding6%

KSh.42.91 per kg

KSh.243.43per litre

KSh.142.44per litre

KSh.356.42perlitre liqueurs and

Spirits ofundenatured ethyl alcohol;spirits other spirituous beverages of alcoholic strengthexceeding6%

Cigarette with filters (hinge lid KSh.4.067.03per mille

and soft cap)

Cigarettes without filters (plain KSh.2.926.41 perMille cigarettes)

Products containing nicotine or nicotine substitutes intended for inhalation without combustion or oral application but excluding medicinal products approved bythe Cabinet Secretary responsible for mattersrelating to health and

other manufactured tobacco and KSh.1,595.00permille

25%

manufactured tobacco substitutesthathavebeen homogenizedandreconstituted tobacco,tobacco extractsand essences

Liquid nicotine for electronic cigarettes

KSh.70per millilitre

Commodity Code Raw Materials

Excise duty

3903.20.00ImportedEmulsion- styrene Acrylic

10%

• 2.(1) The specific rates of excise duty on excisable goods specified in this Schedule shall be adjusted for inflation at the beginning of every financial year in accordance with this paragraph.(2) Each rate ofexcise duty specified in the table inparagraph1 shall bereplaced by the rate of exciseduty computed byreference to thefollowingformula-

A(1+B)

where-

Ais the rate of excise duty on the day immediately before the adjustment.day,and

B is the adjustment factor for the adjustment day,calculated as the

averagerate ofmonthly inflation of theprecedingfinancialyear.

PartII-EXCISABLESERVICES

• 1.Telephone and internet data services shall be charged excise duty atarate offifteenpercent oftheir excisable value.
• 2.Excise duty in fees charged for money transfer services by banks money transfer agencies and other financial service providers shall be fifteen percent of their excisable value.
• 3.Excise duty onfees charged formoney transfer servicesbycellular phone serviceproviders,shall be fifteen percent of their excisablevalue.
• 4.Excise duty on other fees charged by financial institutions shall be twentypercentof their excisablevalue.
• 4A.Excise duty on betting shall be twelve-point five per cent of the amountwagered or staked.

Provided that thisparagraph shallnot apply to horseracing

• 4B.Excise duty on gaming shall be twelve-point fivepercent of the
• amount wagered or staked.
• 4C.Excise duty on prize competition shall be twelve-point five percent of the amountpaid or charged toparticipateinaprize competition.
• 4D.Excise duty on lottery (excluding charitable lotteries) shall be twelve-point fivepercent of the amount paid orcharged tobuy thelottery
• ticket.
• 5.Deleted by Act No.8of 2020,s.17(b).
• 6.Excise duty on fees charged by digital lenders at a rate of twenty percent.
• 7.Excise duty on importation of cellular phones,shall be at ten per
• cent of the excisable value.
• 8.Excise duty on fees charged on advertisement television,print
• media.billboards and radio stations on alcoholic beverages,betting, gaming.lotteries and prize competitions shall be at the rate of fifteen percent.

SecondscheduletoCap.472itisproposedtoamend

PARTA-EXEMPTEXCISABLEGOODS

• 11All goods including materials supplies.equipment,machinery and motor vehiclesforthe official use by theKenya Defence Forces and
• the National PoliceService.
• 16.Locally manufactured passenger motorvehicles:

Provided that in this paragraph,

"locally manufactured passenger motor vehiclemeans a motor

vehicle for the transportation of passengers which is manufactured in Kenya and whose ex-factory value comprises at least thirty percent of local content:

"local contentmeans parts designed and manufactured in Kenya by an original equipment manufacturer operatinginKenya.

Section7of Cap.469Citisproposed toamend

Import declarationfee

• (1)There shall be paid a fee to beknown as the import declaration
• fee,on all goods imported into the country for home use.

• (2)The fee shall be at the rate of two point five per cent of the customs value of the goods and shall be paid by the importer of such goods at the time of entering thegoodsfor home use.
• (3)Despite subsection(1)-
• (a)import declaration fee shall notbecharged on thegoods specified in Part Aof the Second Schedule when imported or purchased beforeclearance through customs:or
• (4)An importer of goodsother than goods specified inPart A of the Second Schedule shall completetheprescribed import declarationform.
• (5)An importer shall present a copy of the import declaration form completed under subsection (4) to the Commissioner at the time of enteringthegoods forhome use.
• (6)Out of the fee collectedunder subsection (2),ten per cent shall be paid intoa Fund established and managed in accordance with the Public Finance Management Act.(No.18of2012).
• (7)The monies in the Fund under subsection (6)shall beused for the payment of Kenya's contributions to the African Union and any other intermational organization towhichKenyahas a financial obligation.

Secondschedule toCap.469Citisproposedto amend-

SECONDSCHEDULE

[s.7(3)(a)]

GOODSEXEMPTFROMIMPORTDECLARATION

FEEANDRAILWAYDEVELOPMENTLEVY

PARTA

GOODSEXEMPTFROMIMPORTDECLARATION FEE WHEN IMPORTEDOR

PURCHASEDBEFORECLEARANCETHROUGHCUSTOMS

Thefollowinggoods are exempt frompayment of import declaration

feewhenimportedorpurchasedbefore clearancethrough customs-

• (xxv)All goods includingmaterial supplies.equipment,machinery and motor vehiclesfor the official use by theKenya Defence
• Forces and National PoliceService:

PARTB(S.8(6))

GOODSEXEMPTFROMTHERAILWAYDEVELOPMENTLEVY WHENIMPORTEDORPURCHASEDBEFORECLEARANCE THROUGH CUSTOMS

Therailway development levy shallnot apply to goods importedor purchased before clearancethrough customs-

• (ix)All goodsincludingmaterial supplies,equipment,machinery and motor vehicles for the official useby theKenya Defence Forces and National PoliceService:

Third schedule toCap.496Cit isproposed to amend

THIRD SCHEDULE

[s.7(3)(a)]

GOODSEXEMPTFROMIMPORTDECLARATION

FEEANDRAILWAYDEVELOPMENTLEVY

| Tariff No.Tariff Description Export investment promotion levy | andRate | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------| | 2523.10.00Cement Clinkers | 17.5%of thecustoms value | | 7207.11.00Semi-finishedproductsofironor non-alloy steelcontaining, by weight,<0.25%of carbon; of rectangular (includingsquare)cross section,the width measuring less than twice thethickness | 17.5%of the customs value | | 7213.91.10Barsandrodsofironornon-alloy175%of thecustoms steel,hot rolled,in irregularly woundvalue coilsof circular cross-section measuring lessthan 14mm in diameter of cross section measuring lessthan8mm | | | 7213.91.90Barsandrodsofironornon-alloy steel,hotrolled,in irregularly woundvalue coils of circular cross-section measuring lessthan 14mmin diameter,other | 17.5%of thecustoms |

| Tariff No. | Tariff Description Export investmentpromotionlevy | and | Rate | |--------------|-------------------------------------------------------------------------------------------|-------|-------------------------| | 4804.11.00 | Uncoatedkraft paper paperboard,in rolls or sheets:Kraftvalue liner:Unbleached | | and10%ofthecustoms | | | 4804.21.00Sackkraft paper:Unbleached | | 10%of the customs value | | | 4804.31.00Otherkraftpaperandpaperboard10%of the customs weighing 150 g/m2 less:Unbleached | | orvalue | | 4819.30.00 | Sacksand bags,havinga base of al0 %ofthe customs width of40 cmormore. | | value | | 4819.40.00 | 0Other sacks and bags. including cones. | | 10%ofthecustoms value |

Section19ofCap.469Bitisproposedtoamend-

• 19.Application for tax agent licence
• (1)An individual or apartnership may apply to the Commissioner for a licence as a tax agent.
• (2)An application under subsection (1)shall be in the prescribed form andaccompanied by theprescribed fee.
• (3)An applicant shall,in addition to the requirements set out in subsections(1) and(2).berequired to be recommended for registration by the TaxAgents Committee.
• Section22of Cap.469Bit isproposedto amend-
• 22.Cancellation of tax agent's licence
• (1)A tax agent who ceases to carry on business as a tax agent shall notify the Commissioner in writing at least seven days before ceasing to carry on business as a tax agent.
• (2)A tax agent may apply in writing to the Commissioner to cancel the licence.
• (3) The Commissioner shall cancel the licence ofa tax agent if-

• (a)a taxreturn prepared and filed by the tax agent is false in any materialparticular,unlessthetax agent satisfies the Commissioner that the falsification was not due to any wilful or negligent conduct of the tax agent;
• (b) the tax agent ceases to satisfy the conditions for licensing as a tax agent,
• (c)the tax agent has ceased to carry on business as a tax agent.
• cancellation of the licence.
• (4) The Commissioner shall notify a tax agent in writing of the
• (5)The cancellation of the licence of a tax agent shall take effect on-
• (a)the date the tax agent ceases to carry on business as a tax agent:or
• Commissioner of the cancellation of the tax agent'slicence,
• whichever is theearlier.

Seetion23AofCap 469Bitisproposedtoamend-

23AElectronic taxinvoice

• (1)The Commissioner may establish an electronic system through
• whichelectronic tax invoicesmay be issued,andrecords of stockskept for the purposesof this Act.
• (2)Aperson who carries onbusinessshall
• (a)Issue an electronic tax invoice through the system established
• under subsection (1);and
• (b)Maintain a record of stocks in the system established under
• subsection (1).
• 3)Where an electronic taxinvoice required to ascertain taxliability
• is issuedbya residentperson or the permanent establishment of a nonresident person,that invoice shall be generated through the system established under subsection (1).
• (4)The electronic tax invoicereferred to in subsection (3)may exclude emoluments,imports,investment allowances,interest,airline passenger ticketingand similar payments.
• (5) The Commissioner may,by notice in the Gazette,exempt a person from therequirements ofthis section.

Section42ofCap.469Bitispr0posedtoamend

• 42.Power to collecttaxfromperson owingmoney to a taxpayer
• (1)This section applies when a taxpayer is,or will become liable to pay a tax and-

• (a)the tax isunpaid tax;or
• (b)the Commissioner has reasonable grounds to believe that the
• thetax.
• (2)The Commissioner may.inrespect of the taxpayer and bynotice in writing,require a person(referred to asthean agent")
• (b)who holds or may subsequentlyholdmoney,for or on account of, the taxpayer:
• (c)who holdsormay subsequently hold money on account ofsome otherperson forpaymentto thetaxpayer,or
• taxpayer,to pay the amount specified in the notice to the Commissioner,being an amount that shall notexceed the amount ofthe unpaid taxor the amountof tax thatthe Commissioner believeswill notbepaid by the taxpayer by the due date.
• (3)When a noticeserved under subsection (2) requiresan agent to deduct a specified amount from a payment of a salary,wages or other similarremunerationpayableatfixed intervalsto thetaxpayer,theamount required to bededucted by the agent from each payment shall notexceed twenty per cent of the amount of each payment of salary,wages,or other remuneration (after the payment ofincome tax).
• (4)This section shall apply to a joint account when-
• (a)all theholders of thejoint account haveunpaid taxliabilities;or
• (b)the taxpayer can withdraw funds from the account (other than a partnership account) without the signature or authorisation of the
• other account holders.
• (5)An agent shall pay the amount specified in a notice under subsection (2)by the date specified in the notice,beinga date that that does not occur before the date that the amountowed by an agentto the taxpayerbecomesdue to the taxpayer orheld on the taxpayer'sbehalf.
• subsection (2) fails to comply with the noticeby reason ofalack of moniesheld by the agent onbehalf of,or dueby the agent tothe taxpayer, the agent shall notify the Commissioner inwritingwithin fourteen days of receiving the notice,setting out the reasons for the agent's inability to
• comply.

• (7When the Commissioner isnotified by an agent under subsection (6)that the agent is unable to pay the amount due,the Commissioner shall within a period of thirty days,in writing to an agent
• (a)accept the notification and cancel or amend the notice issued
• under subsection(2);or
• (b)rejectthenotification
• (8)The Commissioner shall notify an agent inwriting ofa revocation or amendment of a notice given under subsection (2)where the taxpayer satisfactory to theCommissionerforthepayment ofthe tax.
• (9)The Commissioner shall serve the taxpayer with a copy ofa notice umder this subsection (2),when serving the agent.
• (l0)Apayment madeby an agent to the Commissioner in accordance with a notice issuedunder this section is treated ashaving been madeon taxpayer or any otherperson.
• (ll)The Commissioner shall credit any amount paid by an agent under thissection against the tax owed by the taxpayer.
• (12) The Commissioner may require,in writing.any person,within a period of atleast thirty days,to provide a return to the Commissioner showing anymonies whichmay be held by thatperson for a taxpayer referred to in subsection (l)or moniesheld by that person which are due to a taxpayerreferred to in subseclion (1).
• (13)A taxpayer who without reasonable cause fails to comply witha notice or a requirement by the Commissioner under this section shall be
• personallyliable for the amount specified inthenotice orrequirement.
• (14) The Commissioner shall not issue a notice under this section unless-
• a)The taxpayer has defaulted in paying an instalment under section
• 33(2):
• b)The Commissioner hasraised an assessment and the taxpayer has not objected to orchallenged the validity of theassessment within theprescribed period:
• an objection decision within the prescribed timelines:
• d)The taxpayer hasmade a self-assessment and submitted a return but hasnotpaid the taxes due before the due date lapsed:or

• e)The taxpayer has not appealed against an assessment specified in a decision ofthe Tribunal or court.

Section42AofCap.469it isproposed toamend-

• 42AAppointmentofValueAddedTaxwithholdingagent
• (1)The Commissioner may appoint a person towithhold two percent ofthe taxable value on purchasing taxable supplies at the time ofpaying for the supplies and remit the same directly to the Commissioner.

Provided that thewithholding taxshallnot apply to thetaxablevalue ofzero-rated supplies and registered manufacturers whosevalue of investmentin thepreceding threeyears from 1st July,2022isat least three billion.

• (2)The Commissioner may,at any time,revoke the appointment of a tax withholding agent made under subsection (l),if the Commissioner deemsitappropriatetodoso.
• (3)Subsection (1) shall not apply to taxable supplies for official aidfunded projects.
• (4)For the avoidance of doubt,the withholding of tax under subsection (l) shall not relieve the supplier of taxable supplies of the obligation to account for tax in accordance with this Act and the regulations.
• (4B)The tax withheld under this section shall be remitted to the Commissionerwithinfiveworkingdays after the deduction was made.
• (4C)A person who is required under this section to withhold tax commits an offence if the person-
• (a)fails to withhold the whole amount of the taxwhich should have been withheld;or
• (b)failsto remit the amount of the withheld tax to the Commissioner by thefifth working day after the deduction wasmade.
• (4D) A person who commits an offence under subsection (4C)is liable onconviction to apenalty of tenper cent of the amount involved.
• (5)A person who,prior to the commencement of this section,was appointed towithhold taxunder section25Aof theValueAdded TaxAct (Cap.476)shall,notwithstanding therepeal ofthat section,be deemed to bea person appointed under subsection (l),provided that this provision person who ceased to withhold tax for anyperiod following therepeal of that section up to the 8th June,2016.

Section47ofCap.469Bitisproposed toamend-

• 47.Offset orrefund ofoverpaid tax
• (1)Where a taxpayer has overpaid a tax under any tax law,the taxpayermay apply to the Commissioner,in theprescribed form
• (a) to offset the overpaid tax against the taxpayer's outstanding tax
• debtsand future taxliabilities:or
• (b)for a refund of the overpaid taxwithin fiveyears,or six months in the case of value added tax,after the date on which the tax was overpaid.
• (2) The Commissioner shall ascertain and determine an application under subsection (l) within ninety days and where the Commissioner ascertains thatthere was an overpaymentoftax-
• (a)in the case of an application under subsection (l)(a),apply the
• overpaid tax to such outstanding tax debts orfuture taxliability: and
• (b) in the case of an application under subsection (1(b),refund the overpaidtax within aperiod ofsix months fromthedate of ascertainment and,if the Commissioner fails to refund,the overpaid tax shall beapplied tooffset the taxpayer'soutstanding tax debt orfuture taxliabilities.
• (3)Where the Commissioner fails to ascertain and determine an
• application under subsection (l) within ninety days,the same shall be deemedascertainedandapproved.
• (4)The Commissioner may for purposes of ascertaining the validity
• of an application under subsection(l),subject the application to an audit.
• (4A) Where anapplication under subsection(l) has been subjected to
• an audit under subsection (4),the Commissioner shall ascertain and determine theapplication within one hundred-and twenty-daysfailure to which,the application shall be deemed to have been ascertained and approved.
• (5)Where the application is for a refund of tax under subsection (1)(b),the Commissioner shall apply the overpayment in the following order-
• (a)in payment of any other tax owing by the taxpayer under the specifictaxlaw;
• (b)in payment of a tax owing by the taxpayer under any other tax
• law:and

• (c)anyremainder shall berefunded to the taxpayer.
• (6)Where the Commissioner fails to refund the overpaid tax within the period specified in subsection (2)(b),the amount due shall attract interestofoneper cent foreachmonthorpart thereofduringwhichthe amount remains unpaid.
• (7)Where the Commissioner notifies a taxpayer that an application under subsection (l)(a)has been ascertained and applies the overpaid tax liability to offset an outstanding tax in accordance with subsection (2)(a). interest or penalties shall not accrue on the amount applied to offsetting the outstandingtaxliability from the dateof thenotification.
• (8)Where theCommissioner hasapplied the overpaid tax tooffset an outstanding taxliability under subsection(2)(a),any outstanding tax after such application shall accrue interest andpenalties in accordance with this Act,
• (9)Notwithstanding any other provision of this section,where a person overpays an instalment taxdueundersection12of theIncome Tax Act(Cap.470).the Commissioner shall apply the overpaid tax to offset thetaxpayer's future instalment taxliability.
• (10)Where,after the application ofthe overpaid tax under subsection (9),the Commissioner later determines that there wasno overpayment of instalment tax,the amountof the tax that was used to offset the taxpayers future instalment tax liabilitiesunder subsection(9)shall be treated asa taxdueto the Commissionerin thesubsequent taxperiod.
• (11)Theamount dueunder subsection(l0)shall bedue from the date that the Commissioner applied that amount to offset an instalment tax
• liability.
• (12) The Commissioner shall notify the taxpayer in writing of the amount due under subsection(lo)and specify in thenotification-
• (a)the intereston the amount due:and
• (b)any penalties due in respect of the amount due.
• (13) A person aggrieved by a decision of the Commissioner under this section may appeal to the Tribunal within thirty days after being notified of the decision.

Section51ofCap.469Bitisproposedtoamend-

• 51.Objection to taxdecision
• (1)A taxpayer who wishes to dispute a tax decision shall first lodge an objection against that tax decisionunder this section before proceeding underanyotherwritten law.

• (2)A taxpayer who disputes a tax decision may lodge a notice of
• objection to the decision,in writing,with the Commissioner within thirty days ofbeingnotified of the decision.
• (3)A notice ofobjection shall be treated asvalidly lodged bya
• taxpayer under subsection(2)if
• (a)the notice of objection states precisely the grounds of objection, the amendments required to be made to correct the decision,and
• the reasons for the amendments;
• (b)in relation to an objection to an assessment,the taxpayer haspaid the entire amount of tax due under the assessment that is not in dispute,or has applied for an extension of time topay the taxnot in dispute under section33(1):and
• (c)all the relevant documents relating to the objection have been submitted
• (4)Where the Commissioner has determined that a notice of objection lodged by a taxpayer has not been validly lodged,the writing that the objection has not been validly lodged and request the taxpayer to submit the information specified in thenotice within seven
• days after the date of thenotice.
• (4A)Despite subsection (3),where a taxpayer fails to provide the information required under subsection (4) or fails to provide the information within the specified period,the Commissioner may make an objection decision within sixty days after the date on which the notice of objection was lodged.
• (5)Where the tax decision to which a notice of objectionrelatesis an amended assessment,the taxpayer may only object to the alterations and additions made to theoriginal assessment.
• (6)A taxpayer may apply in writing to the Commissioner for an
• extension of time to lodge a notice ofobjection.
• (7) The Commissioner shall consider and may allow an application under subsection(6)if-
• (a) the taxpayer was prevented from lodging thenotice of objection
• within the period specified in subsection (2) because of an absence from Kenya,sickness or other reasonable cause;and
• (b) the taxpayer did not unreasonably delay in lodging the notice of
• objection.

• (7A) The Commissioner shall notify the taxpayer of the decision made under subsection (7)within fourteen days after receipt of the application.
• (8)Where a notice of objection has been validly lodged within time, the Commissioner shall consider the objection and decideeither to allow the objection in whole or in part,or disallow it,and Commissioner's decision shall bereferred to as an"objection decision
• (9)The Commissioner shall notify in writing the taxpayer of the objection decision and shall take all necessary steps to give effect to the decision,including,in the case of an objection to an assessment,making an amended assessment.
• (10) An objection decision shall include a statement of findings on the material facts and the reasons for the decision.
• (1l) The Commissioner shall make the objection decision within sixty daysfrom the date ofreceipt ofavalid noticeofobjection failure to which theobjection shall be deemed to be allowed.
• (12)Aperson whoisdissatisfied with the decision of the Commissioner under subsection (1l) may appeal to the Tribunal within thirty days afterbeingnotified of the decision.

Section59AofCap.469Bitisproposedtoamend-

59A.Datamanagement and reporting system

• (1)The Commissioner may establish a data management and reporting system for the submission of electronic documents including detailed transactional data relating to those documents.
• (2)The Commissioner shall notify in writing the persons required to submit electronic documents through the system established under subsection (1).
• (3)The electronic documents referred to in subsection (2)include electronicinvoicereturns-
• (a)of payments made by a person in the ordinary course of business where goods were exchanged for consideration by a person not employed in the business;
• (b)Forpaymentsmadebyaperson in the ordinary course of business where services were rendered,or in anticipation of services to be rendered,by aperson not employed in thebusiness;
• (c)For payments for services rendered,or in anticipation of services to be rendered,in connection with the formation,acquisition,

• development,or disposal of a business or a part ofit,by persons not employed in the business;
• (d)For periodical or lump sum payments inrespect of a royalty;or
• (e)For such other commercial or financial transaction as may be designated by the Commissioner.
• (4)For thepurposesofthis section-
• (a)"transactional data"includes-
• (i)The names and addresses of each person to whom a payment was made;
• (ii)where thepayment is for services,theamount of the payment specifying whether the payment is a commission of any kind or is for expenses incurred in connection with rendering the services:
• (ii)Where thepayment is inany form ofvaluable consideration other than money,theparticulars of the consideration;and
• (iv) Such other particulars as the Commissionermay specify;
• (b)References to payments for services include references to payments in thenature of commission of anykind andreferences topayments inrespect ofexpenses incurred in connection with the rendering of services,and
• (c)references to the making of payments include references to the giving of any form ofvaluable consideration,and therequirement imposed by paragraph (a)(ii) to state the amount of a payment shall,inrelation to any consideration given otherwise than in the form ofmoney,be construed as a requirement to give particulars of the consideration.

Section77ofCap.469Bit isproposed toamend-

• 77.Due date for submission andpayment

If the date for-

• (a) submitting or lodging a tax return,application,notice,or other document;
• (b)the payment of a tax;or
• (c)takingany other action under a taxlaw,

falls on a Saturday,Sunday.or publicholiday inKenya,the due date shall bethepreviousworkingday:

Providedthatwhere a person who submits anotice ofobjection in

electronic form or a tax return in electronic form,or pays the tax electronically.the due date shall remain the date specified in the relevant taxlaw.

Section83of Cap.469Bit isproposed toamend-

• 83.Late submission penalty
• (1)A person who submits a tax return after the due date shall be
• liableto apenalty-
• (a)of twenty-five percent of the tax due or ten thousand shillings whichever is higher,if it is in relation to a return required to be submitted onaccount ofemployment income;
• (b)one thousand shillings if it isinrelation to a return required to be
• submitted under Turnover Tax:or
• (c)fiveper cent of the amount of taxpayable under thereturn or ten thousand shillings,whichever is the higher,if it is in relation to value added tax or excise duty;
• (d)in any other case-
• (i)five per cent of the amount of tax payable under thereturn or twenty thousand shillings,whichever is the higher,in respect ofaperson other than an individual;or
• (i)five per cent of the amount of taxpayable under thereturn or
• two thousand shillings.whichever is the higher,for an individual.

Provided that in the calculation of the late submission penalty for purposes of this section,the amount of taxpayable or due under the return shall bereduced by the amounts already paid andwithholding

tax credits.

Firstschedule toCap.469Bitisproposedtoamend

FIRSTSCHEDULE

TRANSACTIONSFORWHICHAPINISREQUIRED

• (1)Registration of titles and stampingof instruments.
• (2)Approval of development plans and payment of water deposits.
• (3)Registration of motor vehicles,transfer ofmotor vehicles,and licensing of motor vehicles.
• (4)Registration ofbusinessnames:

• (5)Registration ofcompanies.
• (6)Underwriting of insurancepolicies.
• (7)Trade licensing.
• (8)Importation of goods and customs clearing and forwarding.
• (9)Payment of depositsfor power connections.
• (10)All contracts for the supply of goods and services to Government Ministriesandpublicbodies.
• (11) Opening accounts with financial institutions and investment banks.
• (12)Registration and renewal ofmembershipby professional bodies andotherlicensing agencies.
• (13)Registration ofmobile cellular pay bill and till numbers by telecommunication operators.
• 14.Carrying out business over the internetor an electronic network including througha digital marketplace.
• 15.Registration ofa trust.

Section54ofNo.4of2024itisproposed toamend

• 54.Restrictions to owners ofaffordablehousingunit

Except with the prior written consentof the Board,apurchaser of an affordable housingunit under this Act shall not by contract,agreement or otherwise,sell or agree tosell his orherunitor any interest therein to any other person.

Section5BofCap.237itisproposedtoamend-

• 5B.Traininglevies
• (1)The Commissioner-General of the body responsible for the assessment and collection of revenue shall be responsible for collecting trainingleviesfrom employers.
• (2)For purposes of this Act,the Commissioner-General shall have all the powers conferred on the Commissioner-General by theKenya Revenue AuthorityAct(Cap.469)and Income TaxAct(Cap.470).
• (3)An employer shall pay the training levy to the CommissionerGeneral at the time when an employee's salary is payable and shall be remitted to the Commissioner-General not later than the fifth day of the month followingthemonthinwhich thelevybecomes due.

• (4)The training levy collected under this section shall be paid into the Training Levy Fund.
• (5)A training levy shall not be deducted from the emoluments of an employee.
• (6)Subject to the provisions of this Act,the Income Tax Act (Cap. 470) and theKenya Revenue Authority Act(Cap.469) shall applyin this Act including in respect of-
• (a)thepayment and recovery ofthe levies andpenalties:
• (b)assessment of levy payable;
• (c)filing of returns;
• (d)the furnishing of information and production of documents:and
• (e)keeping of records.

Section5lof Cap411Citisproposedto amend-

51.Generalexemptions

• (1) Nothing in this Part shall exempt any data controller or data processor fromcomplying with data protection principles relating to lawful processing,minimisation of collection,data quality,and adopting security safeguards toproteclpersonal data.

2. (2)The processing ofpersonal data isexempt from the provisions of thisAct if- 3. (a)it relates to processing of personal data by an individual in the course of a purelypersonal or household activity; 4. (b)if it is necessary fornational security or publie interest;or 5. (c)disclosure isrequired byor under any written law or by an order of the court.

Section 194of Cap412Ait isproposed to amend-

194.Functions of the Board

• (1)The Accounting Standards Board shall provide frameworks and set generallyaccepted standards for the development and managementof accountingand financial systems by all State organs and public entities, and shall inparticularperformthe followingfunctions-
• (a)set generally accepted accountingand financial standards:
• (b)prescribe theminimum standards ofmaintenanceofproper books ofaccount for all levels of Government;

• (c)prescribe internal audit procedures which comply with this Act;
• (d)prescribe formats for financial statements and reporting by all
• state organs and public entities:
• (e)publish and publicise the accounting and financial standards and any directivesand guidelinespreseribed by the Board:
• (f)in consultation with the Cabinet Secretary on the effective dates of implementationof these standards,Gazelte the dates for application of the standards and guidelines:and
• accounting systems management and reporting in the public sector.
• (2)In setting the standards under subsection (1).the Board shall take into account any relevant factors including
• (a)best international accounting praclices;and
• (b)the capacity of therelevantentity to comply with the standards.
• (3)The Board may set different standards for different categoriesof
• entities to which these standards apply including to develop content, structure and format ofcounty frameworks and aecounting and financial guidelineswhich are in line with the setting of county standards.
• (4)The Board shall monitor the adherence to the standards by all
• State organs and public entities.
• (5)The standards set by the Board shall promote transparency and other Constitutional values and principles in effective.prudence and efficient management of revenue,expenditure.assets and liabilities of the
• institutions toWhich these standards apply.

FirstScheduletoCap.469itisproposedto amend-

FIRSTSCHEDULE

[s.2&amp;5]

WRITTENLAWSRELATINGTOREVENUE

PARTI

• 1.The Income Tax Aet (Cap.470).
• 2.Spent.
• 3.The Value Added Tax Act (Cap.476).
• 4.The Road Maintenance Levy Fund Aet (Cap.427).

• 5.The Air Passenger Service Charge Act (Cap.475).
• 6.The Entertainment Tax Act (Cap.479).
• 7.The East African Community Customs ManagementAct,2004.
• 8.The Annexes to the Protocol on the Establishment of the East African
• Community Customs Union.
• 9.Spent.
• 10.ExciseDuty Act(Cap.472).
• 11.Tax Procedures Act (Cap.469B).
• 12.Miscellaneous Fees and Levies Act (Cap.469C)
• 13.The Alcoholic Drinks Act(Cap.121).

PARTII

• 1The Traffic Act(Cap.403).
• 2.Spent.
• 3.The Second-Hand Motor VehiclesPurchase Tax Act (Cap.484).
• 4.The Civil Aviation Act (Cap.394).
• 5.The Widowsand Children'sPensions Act(Cap.195).
• 6.The Parliamentary Pensions Act (Cap.196).
• 7.The Betting,Lotteries and Gaming Act (Cap.131).
• 8.The Stamp Duty Act(Cap.480).
• 9.The Horticultural Crops Development Authority (Imposition of Fees
• and Charges) Order,1995 (L.N.225of1995).
• 10.The Standards Levy Order,I990(L.N.267of 1990).
• 10A.The Industrial Training Act (Cap.237).
• 11.The Govermment Lands Act (Cap.280).
• 12.TheSugarAct(No.10of2001)(Repealed)
• 13.The National Social Security Fund Aet(Cap.258).
• 14.Public Finance Management Act (Cap.412A).
• 15.The Affordable HousingAct,2024.