Kenya Revenue Authority (KRA) agents could soon breathe a sigh of relief as a proposed amendment to the KRA Act seeks to alleviate penalties imposed on them for delayed remittance of collected taxes.

The Kenya Revenue Authority (Amendment) Bill, 2024, introduced by Majority Leader Kimani Ichung'wah, proposes to grant the Treasury Cabinet Secretary the power to waive penalties for appointed agents who fail to transfer collected funds.

This move aims to protect both agents and businesses from the financial burden of late payments.

The Bill, which underwent its first reading on August 15, 2024, has been committed to the Committee on Finance and National Planning for further consideration.

The Clerk of the National Assembly has invited public input on the proposed amendments.

Read More

  1. KRA announces changes to PAYE computation under amended tax laws
  2. Kenya’s debt soars to Sh10.8 trillion as pressure on finances mounts
  3. MPs reject proposal to centralise KRA deputy commissioners’ appointments

According to the Bill, the waiver would be applicable in cases where the failure to remit taxes is deemed inadvertent or if the agent is under receivership or statutory management.

Additionally, the waiver would be considered if the payment was delayed due to system downtime, lack of negligence, or prior notification of receivership.

The proposed amendment seeks to address a longstanding issue where agents have been forced to bear the burden of penalties imposed on businesses due to delayed remittances.

By introducing a waiver mechanism, the Bill aims to mitigate these financial losses and ensure a fairer system for both agents and taxpayers.

Beyond the waiver provision, the Ichung'wah Bill also proposes to amend the Kenya Revenue Authority Act to empower the Commissioner-General to appoint Deputy Commissioners.

This amendment aims to streamline the administration of the Kenya School of Revenue Administration and expand its role in promoting revenue knowledge and expertise across the country.

The Bill further seeks to facilitate collaboration between the Kenya School of Revenue Administration and other institutions of higher learning.

By amending Section 5 of the existing law, the Bill proposes to introduce programs in revenue administration, curriculum development, student assessment, and qualification awarding.

The public has until September 9, 2024, to submit their views on the Kenya Revenue Authority (Amendment) Bill, 2024.