Agents working on behalf of the Kenya Revenue Authority (KRA) could soon benefit from significant relief under a new proposed waiver for delayed remittances. The Kenya Revenue Authority (Amendment) Bill, 2024, aims to provide this relief and prevent penalties for traders and businesses due to late payments.
Introduced by Majority Leader Kimani Ichung’wah, the bill seeks to amend Section 15a of the Kenya Revenue Authority Act. It would grant the Treasury Cabinet Secretary the power to waive penalties for agents who fail to transfer collected funds.
This bill, which had its first reading on August 15, 2024, is now under review by the Committee on Finance and National Planning. The Clerk of the National Assembly has invited public feedback on the proposed changes.
According to the bill, waivers will be available if the failure to remit funds is unintentional or if the agent is under receivership or statutory management. Specifically, the amendment to Section 15a reads: “The Cabinet Secretary may waive part or the whole of the penalty due under subsection 3 immediately after subsection 4.” The bill clarifies that waivers will apply if payment issues stem from system downtime and there is no negligence or prior notice of receivership.
Previously, agents who delayed remitting collected revenues often shifted the penalty burden onto traders, causing significant losses for businesses. The new bill aims to address this issue by eliminating this practice and imposing penalties only for delays without valid causes.
In addition to the waiver proposal, the bill seeks to amend the Kenya Revenue Authority Act (Cap. 469) to empower the Commissioner-General to appoint Deputy Commissioners. This change involves removing the phrase “and Deputy Commissioners” from Section 13 and replacing it with “The Commissioner-General shall appoint such Deputy Commissioners as may be deemed necessary.”
The proposed amendments will also expand the role of the Kenya School of Revenue Administration (KSRA). If approved, KSRA will collaborate with other higher education institutions to enhance its educational programs.
The bill proposes modifying Section 5 of the Kenya Revenue Act to provide a legal framework for this collaboration, allowing KSRA to offer new programs, develop curricula, assess students, and award qualifications.
The public has until September 9, 2024, to submit their views on the bill.
