KRA continues with tax plan as court nullifies laws

KRA Headquarter in Nairobi (PHOTO: FILE)

NAIROBI, KENYA: The Kenya Revenue Authority (KRA) will continue implementing tax plan even after the High Court last week nullified laws passed by the National Assembly without the input of the Senate.

The nullified laws that relate to tax administration include the statute law (Miscellaneous Amendment Act), number 4 of 2018, the tax laws (Amendments) Act, number 9 of 2018, the Statute Law (Miscellaneous Amendments) Act, number 18 of 2018, the Finance Act, number 10 of 2018 and the statute law (Miscellaneous Amendment) act 2019.

The High Court sitting in Nairobi on October 29 in petition number 284 of 2019 consolidated with petition number 353 of 2019 nullified the laws.

KRA in a statement argues that despite the nullification, implementation of court crders has been suspended for nine months to allow the Speaker of the National Assembly and the Attorney General to comply with the provisions of Article 110 (3) of the Constitution and regularize the affected laws.

“The new court development does not affect revenue collection as the nullified laws are still in force as guided by the Court. Additionally, the enforcement measures already taken by the Authority in implementing the laws are valid,” said KRA commissioner legal services and board coordination Paul Matuku.

The Finance Act of 2018 contained the bulk of the taxes that are at risk of being nullified.

These include the excise duty in fees charged for money transfer services by banks, money transfer agencies, and other financial service providers.