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Kenya Revenue Authority (Amendment) Bill, 2022

On the 13th of April 2022, the Kenya Revenue Authority (Amendment) Bill, 2022 (“the Bill”) was published. The Bill seeks to inter-alia amend the Kenya Revenue Authority Act, 1995 (“the principal Act”) and make consequential amendments to other statutes.

The key highlights of the Bill are as follows:

  • Establishment of the Kenya Revenue Service

The Bill seeks to amend the principal Act by establishing the Kenya Revenue Service (“the KRS”) in place of the Kenya Revenue Authority (“the KRA”). The KRS is meant to succeed the KRA, and all rights, duties, obligations, assets and liabilities of the latter are to be transferred to the former.

Additionally, the Bill also seeks to amend other statutes by deleting any references to the words “Kenya Revenue Authority” and substituting thereof the words “Kenya Revenue Service”. These Acts include the Anti-Counterfeit Act, 2008; Betting, Gaming and Lotteries Act (Cap 131); Income Tax Act (Cap 470); Stamp Duty Act (Cap. 480), Value Added Tax Act, 2013 among others

  • Substitution of Words

The Bill also seeks to amend the principal Act by deleting any references to the words “Minister” and “Permanent Secretary” and substituting them with “Cabinet Secretary” and “Principal Secretary” respectively.

Impact 

The Memorandum of Objects and Reasons of the Bill states that the main reason behind the change of name from the “Kenya Revenue Authority” to the “Kenya Revenue Service” is that the word “Authority” connotes a commandeering body rather than a friendly service-oriented institution. Therefore, the change of name is intended to rebrand the Authority in transforming its public image and thus enhancing tax compliance through improved public relations and by maintaining a clear focus on taxpayers needs and rights.

Additionally, it is noted that by deleting the words “Minister” and “Permanent Secretary” and substituting them with “Cabinet Secretary” and “Principal Secretary” respectively, the Bill seeks to align the principal Act with the Constitution.  From our analysis of the Bill, we note that the proposed amendments to the principal Act are merely technical in nature and the passage of the Bill will not impose additional tax obligations.

 

 

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