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Why KRA Will Continue Collecting Taxes Using Nullified Laws

mary wambui, jubilee financier
Times Tower, the building that houses the KRA. [PHOTO/ COURTESY]

The Kenya Revenue Authority (KRA) will continue implementing laws on the Acts passed by the National Assembly without the input of the Senate.

In a statement on Friday, KRA said they had nine months for the National Assembly to comply with the required legal guidelines before the laws are regularized.

“Despite the nullification, implementation of Court Orders has been suspended for nine (9) 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,” said KRA Commissioner for Legal Services And Board Coordination Mr Paul Matuku.

Article 110 (3) requires that before either House considers a Bill, the Speakers of the National Assembly and Senate shall jointly resolve any question as to whether it is a Bill concerning counties and, if it is, whether it is a special or an ordinary Bill.

“However, this 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,” added Mr Mutuku.

Read: How to Apply for a Waiver on your KRA Tax Penalties

On Thursday, the High Court quashed the Finance Act 2018, the Tax Laws (Amendments) and the Statute Law (Miscellaneous Amendment).

Among the taxes that were quashed include taxes on fuel, M-Pesa transfers and an Ksh18 a litre levy on kerosene.

Also nullified include eight percent value added tax (VAT) that was introduced in September 2018 on petrol and diesel prices.

The law that demands traders who run micro and small scale businesses pay presumptive tax at the rate of 15 percent of the single business permit fee issued by county governments has also been quashed.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email

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