M-Wakili

FINANCE ACT 2009 - as Plain Text by MWakili

SPECIAL ISSUE Kenya Gazette Supplement No.

82 (Acts No.

8) REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT ACTS, 2009 1 NAIROBI, 23rd December, 2009 CONTENT Act PAGE The Finance Act, 2009 577 PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI 577 THE FINANCE ACT No.

8 of 2009 Date of Assent: 22nd December, 2009 Date of Commencement: See Section 1 An Act of Parliament to amend the law relating to various taxes and duties and for matters incidental thereto ENACTED by the Parliament of Kenya, as follows - PART I - PRELIMINARY 1.

This Act may be cited as the Finance Act, 2009 and Short title and shall come into operation, or be deemed to have come into commencement.

operation, as follows- (a) sections 2, 4, 5, 6(a), 6(b), 6(e), 7, 8, 10, 11, 12, 13, 14, 15, 16, 18, 19, 21, 22(a), 22(c), 22(d), 23, 24, 25, 26, 27, 28, 30(a) and 65, on the 12th June 2009; (b) section 66, on the 1st July 2009; (c) sections 6(c), 6(d) and 14(a)(ii) on the 26th November, 2009; (d) sections 3, 9, 17, 20,22(b), 29, 30(b), 30(c), 30A, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 67, 68, 69, 70, 71, 72, 73, 74 and 75, on the 1st January, 2010.

578 2009 No.

8 Finance PART H CUSTOMS AND EXCISE Amendment of 2.

Section 90 of the Customs and Excise Act is section 90 of Cap.472.

amended - (a) in subsection (2), by deleting the words "industrial use" appearing in paragraph (b) and substituting therefor the words "packing and packaging"; (b) by inserting a new subsection immediately after subsection (2) as follows - (2A).

The licences required under subsection (2) shall be valid for a renewable period of one year.

Amendment of 3.

Section 91A of the Customs and Excise Act is section 91A of amended in subsection (1) by deleting the words "two Cap.472.

hundred millilitres or less" and substituting therefor the words "less than two hundred and fifty millilitres".

Repeal of 4.

The Customs and Excise Act is amended by section 126A of repealing section 126A.

Cap.

472.

Amendment of 5.

The Fourth Schedule to the Customs and Excise Act Fourth is amended by renumbering the existing Fourth Schedule as Schedule to Part I and inserting a new Part II as follows- Cap.

472.

PART II "Part I shall not apply to exports to Export Processing Zones".

579 No.

8 2009 Finance 6.

The Fifth Schedule to the Customs and Excise Act Amendment of is amended Fifth Schedule to Cap.

472.

(a) in the manner specified in paragraph 1 of the First Schedule to this Act; (b) in the manner specified in paragraph 2 of the First Schedule to this Act; (c) in the manner specified in paragraph 2A of the First Schedule to this Act; (d) in the manner specified in paragraph 2B of the First Schedule to this Act; (e) in the manner specified in paragraph 3 of the First Schedule to this Act.

PART III VALUE ADDED TAX 7.

Section 2 of the Value Added Tax Act is amended Amendment of by inserting the following new definition in proper section 2 of alphabetical sequence - Cap.

476.

"transit goods" means goods imported from a foreign place, through the territory of Kenya, to a foreign destination.

8.

Section 9 of the Value Added Tax Act is amended in Amendment of subsection (1) by deleting subparagraph (c)(ii) and section 9 of substituting therefor the following new subparagraph - Cap.

476.

(ii) the amount of duty of customs, if any, paid on those goods.

580 No.

8 Finance 2009 Amendment of 9.

Section 12 of the Value Added Tax Act is amended section 12 of in subsection (1) by deleting the words "thirty days" and Cap.

476.

substituting therefor the words "three months".

Amendment of 10.

Section 19A of the Value Added Tax Act is section 19A of amended by inserting a new subsection immediately after Cap.

476.

subsection (2) as follows (2A) A person withholding tax under subsection (2) shall issue a withholding tax certificate to the supplier at the time of making the payment for the supplies.

Amendment of 11.

Section 23 of the Value Added Tax Act is section 23 of amended in subsection (3) by deleting paragraph (b) and Cap.476 substituting therefor the following new subsection - (b) taxable goods for emergency relief purposes for use in specific areas and within a specified period, imported or purchased locally by the Government or its approved agent, a non- governmental organization or a relief agency authorized by the Minister responsible for disaster management, where - (i) the goods are for use in areas where a natural disaster or calamity has occurred in Kenya; or (ii) the goods are intended for use in officially recognized refugee camps in Kenya; (iii) the goods are household utensils, food stuffs, materials for provision of shelter or equipment and materials for health, sanitary or educational purposes; and, 581 2009 Finance No.

8 (iv) in the case of a natural disaster or calamity, the importation or purchase locally is made within six months or such further period, not exceeding twelve months, as the Commissioner may permit in each case: Provided that the goods imported or purchased under this paragraph shall be of such quantities and subject to such limitations as the Commissioner may impose.

12.

The Second Schedule to the Value Added Tax Act Amendment of is amended by inserting the following tariff number and the Second description in proper numerical order - Schedule to Cap.

476.

TariffNo.

Tar ff Description.

8517.12 00 for Telephones cellular networks or for other wireless networks.

13.

The Third Schedule to the Value Added Tax Act Amendment of is amended the Third Schedule to (a) by deleting paragraph 1 and substituting therefor Cap.

476.

the following new paragraph - 1.

The following financial services - (a) the operation of current, deposit or savings accounts, including the provision of account statements; 582 No.

8 Finance 2009 (b) the issue, transfer, receipt or any other dealing with money, including money transfer services, and accepting over the counter payments of household bills, but excluding the services of carriage of cash, restocking of cash machines, sorting or counting of money; (c) issuing of credit and debit cards; (d) automated teller machine transactions, excluding the supply of automated teller machines and the software to run it; (e) telegraphic money transfer services; (f) foreign exchange transactions, including the supply of foreign drafts and international money orders; (g) cheque handling, processing, clearing and settlement, including special clearance or cancellation of cheques; (h) the making of any advances or the granting of any credit; 583 2009 Finance No.

8 (i) issuance of securities for money, bills of exchange, including promissory notes, money and postal orders; (j) the provision of guarantees; letters of credit and acceptance and other forms of documentary credit; (k) the issue, transfer, receipt or any other dealing with bonds, debentures.

treasury bills and other forms of security or secondary security; (1) the assignment of a debt for consideration; (m)the management of a unit trust or collective investment scheme registered by the Capital Markets Authority and managed by the trustees of the scheme; (n) credit rating bureau services provided by a credit agency registered by the Capital Market Authority; (o) the provision of the above financial services on behalf of another on a commission basis.

No.

8 Finance 2009 (b) in paragraph 10, by renumbering the existing provision as subparagraph (1) and inserting a new subparagraph as follows - (2) Sale of buildings.

Amendment of The Fifth Schedule to the Value Added Tax Act is 14.

the Fifth amended - Schedule to Cap.

476.

(a) in Part A (i) in the manner set out in paragraphs 1, 2 and 3 of the Second Schedule to this Act; (ii) in the manner set out in paragraph 4 of the Second Schedule to this Act.

(b) in Part B, in the manner specified in the Second Schedule to this Act; (c) in Part C - (i) by deleting the word "other" appearing at the beginning of item 9; (ii) by inserting the words "parts of at the beginning of item 17.

Amendment of 15.

The Seventh Schedule to the Value Added Tax Act the Seventh is amended - Schedule to Cap.

476.

(a) in paragraph 1, by deleting the words "or within fourteen days of the completion thereof' appearing in subparagraph (a); 585 Finance No.

8 2009 (b) in paragraph 10(1) ,by inserting the words "at the time of making the payments to the supplier" immediately after the word "Regulations" appearing in subparagraph (b).

PART IV INCOME TAX 16.

Section 2 of the Income Tax Act is amended - Amendment of section 2 of (i) by inserting the following new definition in Cap.470.

proper alphabetical sequence "telecommunication operator" means a person licensed as such under the Kenya No.2 of 1998.

Information and Communications Act, 1998; (ii) by deleting the definition of "training fee" and substituting therefor the following new definition "training fee" means a payment made in respect of a business or user training services designed to improve the work practices and efficiency of an organization, and includes any payment in respect of incidental costs associated with the provision of such services.

17.

Section 4 of the Income Tax Act is amended by Amendment of inserting the following proviso at the end of paragraph (b) - section 4 of Cap.470.

586 No.

8 Finance 2009 "Provided that in computing the total income of a partnership, there shall be deducted the cost of medical expenses or medical insurance cover paid by the partnership for the benefit of any partner, subject to a limit of one million shillings per year.

Amendment of 18.

Section 4A of the Income Tax Act is amended in section 4A of subsection (4) by inserting the following new definition Cap.470.

immediately after the definition of "company" - "all loans" shall have the meaning assigned in section 16(3).

Amendment of 19.

Section 7A of the Income Tax Act is amended by section 7A of deleting subsection 3(c).

Cap.470.

Amendment of 20.

Section 8 of the Income Tax Act is amended - section 8 of Cap.470.

(a) in subsection (4), by deleting the words "one hundred and eighty thousand" and substituting therefor the words "three hundred thousand"; (b) in subsection (5) by - (i) deleting the words "four hundred and eighty thousand" appearing in paragraph (a) and substituting therefor the words "six hundred thousand"; (ii) deleting the words "forty eight thousand" appearing in subparagraph (b)(i) and substituting therefor the words "sixty thousand"; 587 2009 Finance No.

8 (iii) deleting the words "four hundred and eighty thousand shillings" appearing in subparagraph (b)(ii) and substituting therefor the words "six hundred thousand"; (iv) deleting the words "four hundred and eighty thousand shillings or the first forty- eight thousand shillings" appearing in subparagraph (c)(i) and substituting therefor the words "six hundred thousand shillings or the first sixty thousand shillings"; (v) deleting the words "four hundred and eighty" appearing in paragraph (d) and substituting therefor the words "six hundred".

21.

Section 10 of the Income Tax Act is amended in Amendment of paragraph (d) by deleting the words "in Kenya".

section 10 of Cap 470.

22.

Section 15 of the Income Tax Act is amended- Amendment of section 15 of (a) in subsection (2) - Cap.470.

(i) by deleting the words "but excluding the National Social Security Fund" appearing in paragraph (o); (ii) by inserting a new paragraph immediately after paragraph (x)as follows 588 No.

8 Finance 2009 (y) expenditure of a capital nature incurred in the purchase or acquisition of an indefeasible right to use a fibre optic cable by a telecommunication operator, provided the amount of deduction shall be limited to five per cent per annum.

(b) in subsection (3), by inserting the following new paragraph immediately after paragraph (f) (g) in the case of a business which is a sole proprietorship, the cost of medical expenses or medical insurance cover incurred for the benefit of the proprietor, subject to a limit of one million shillings per year.

(c) in subsection (4) (i) by deleting the words "for the next succeeding year of income" appearing in the introductory portion and substituting therefor the words "for that year and the next four succeeding years of income"; (ii) by deleting the words "subsequent years" appearing in paragraph (ii) of the proviso and substituting therefor the words "next succeeding four years"; 589 Finance No.

8 2009 (iii) by adding a new subparagraph in the proviso immediately after subparagraph (iii) as follows- (iv) Any deficit incurred by a person as at Is'.

January, 2010 shall be deemed to have been incurred in that year of income.

(d) by inserting the following new subsection immediately after subsection (4) - (4A) Notwithstanding subsection (4), the Minister may, on the recommendation of the Commissioner, extend the period of deduction beyond five years where a person applies through the Commissioner for such extension, giving evidence of inability to extinguish the deficit within that period.

23.

Section 16 of the Income Tax Act is amended by Amendment of deleting subsection 2(t).

section 16 of Cap.470.

24.

Section 19 of the Income Tax Act is amended - Amendment of section 19 of (a) in subsection (5), by deleting paragraph Cap.470.

(a) and substituting therefor the following new paragraph (a) the amount of actuarial surplus, as determined under the Insurance Act and recommended by the actuary to be transferred from the life fund for the benefit of shareholders; 590 No.

8 Finance 2009 (b) in subsection (5A) by deleting the proviso and substituting therefor the following new proviso - Provided that the amount of negative transfer shall be limited to the actuarial surplus recommended by the actuary to be transferred from the life fund for the benefit of shareholders in previous years of income.

(c) in subsection (6), by deleting paragraph (a) and substituting therefor the following new paragraph - (a) the same proportion of the amount of actuarial surplus recommended by the actuary to be transferred to the shareholders as the actuarial liability in respect of its long term insurance business in Kenya bears to the actuarial liability in respect of its total long term insurance business; and (d) in subsection (6A), by deleting the proviso and substituting therefor the following new proviso - Provided that the amount of negative transfers shall be limited to the amount of actuarial surplus recommended by the actuary to be transferred from the life fund for the benefit of the shareholders in the previous years on income.

591 2009 Finance No.

8 25.

Section 35 of the Income Tax Act is amended in Amendment of subsection (1), by deleting paragraph (a) and substituting section 35 of therefor the following new paragraph - Cap.470.

(a) a management or professional fee or training fee except (i) a commission paid to a non-resident agent in respect of flowers, fruits or vegetables exported from Kenya and auctioned in any market outside Kenya and audit fees for analysis of maximum residue limits paid to a non-resident laboratory or auditor; or (ii) a commission paid by a resident air transport operator to a non-resident agent in order to secure tickets for international travel.

26.

The Income Tax Act is amended by repealing Repeal of section 39A.

section 39A of Cap.470.

27.

Section 72 of the Income Tax Act is amended in Amendment of subsection (1), by deleting the words "for each period of section 72 of twelve months or part thereof during which the failure Cap.470.

continues" appearing in paragraph (a).

28.

The Income Tax Act is amended by inserting the Insertion of following new section immediately after section 75 - section 75A in Cap 470.

Assessment in 75A.(1) Notwithstanding any other certain cases.

provision of this Act, where the Commissioner has reason to believe that any tax payable by any person is at risk of non- payment - 592 No.

8 Finance 2009 (a) due to the imminent departure of the person from Kenya; or (b) where the person, being a company, is about to be liquidated or otherwise wound up or cease business; the Commissioner may, whether or not the due date for the payment of that tax has arrived, by notice in writing served on that person require that person to pay the tax within the time specified in the notice.

(2) Any person who fails to pay tax when required to do so under subsection (1) shall be guilty of an offence.

Amendment of 29.

The Second Schedule to the Income Tax Act is Spcond amended Schedule to Cap.470.

(a) in paragraph 1 - (i) by inserting the following new sub- paragraph immediately after subparagraph (1)(c) (cc) in a case referred to in paragraph 1(1)(a) for the year of income commencing on or after 1 st January, 2010, ten per cent; 593 2009 Finance No.

8 (ii) by inserting the following new sub- paragraph immediately after subparagraph (1)(d) "(dd) in a case referred to in paragraph 5(1)(e) for the year of income st commencing on or after 1 January, 2010, fifty per cent.

(iii) by inserting the following new sub- paragraph immediately after subparagraph (1)(e) "(ee) in a case referred to in paragraph 5(1)(f) or 5(1)(ff) for any year of income commencing on or after 151 January 2010, where roads, power, water sewer and other social infrastructure have been provided, twenty five per cent.

(b) in paragraph 5, by deleting subparagraph (1)(e) and substituting therefor the following new subparagraph (e) a building in use as a hostel or an educational building ,or a building in use for training, provided such building has been certified by the Commissioner for the purposes of this paragraph; 1 594 No.

8 Finance 2009 (c) in paragraph (5)(1), by inserting a new subparagraph immediately after subparagraph (f) as follows - (ff) a building in use as a commercial building other than a building referred to in subparagraph (1)(0; (d) in paragraph (7), by inserting the following new subparagraph immediately after subparagraph (3) (4) For telecommunication equipment purchased and used by a telecommunication operator, other than machinery specified under subparagraph (3)(d), the amount of wear and tear for a year of income shall be twenty per cent of the amount of expenditure incurred.

(e) in paragraph 24 - (i) by inserting the following new subparagraphs immediately after subparagraph 1(e) - (f) on the construction of a building or purchase and installation of machinery outside the City of Nairobi or the Municipalities of Mombasa or Kisumu whereof the value of the investment is not less than two hundred million shillings; 595 2009 Finance No.

8 (g) on the purchase of filming equipment by a local film producer licensed by the Minister responsible for matters relating to communication; (ii) by inserting the following new subparagraphs immediately after subparagraph (2)(b) - (c) in the case of an investment referred to in subparagraph (1) (f), be equal to one hundred and fifty percent of the capital expenditure; (d) in the case of the equipment referred to in subparagraph (1)(g), be equal to one hundred percent of the capital expenditure.

(iii) by inserting the words "or the building or machinery referred to in subparagraph (0" immediately after the expression "subparagraph (e)" appearing in subparagraph (1); (iv) in subparagraph (3)(e), by inserting the words "or the transformation and distribution of electricity through the national grid" immediately after the words "supply to the national grid" appearing in the definition of the word "manufacture".

596 No.

8 Finance 2009 (ee) in paragraph 26, by deleting the expression "paragraph 24(1)(a) or (c)" and substituting therefor the expression -paragraph 24(1) (a), (c) or (f);" (f) by inserting new paragraphs immediately after paragraph 31 as follows- 31A.

Where a person incurs capital expenditure under a concessionairing arrangement, the deduction shall be spread and claimed in equal portions over the period of the concession, provided that the period of the concession shall be deemed to commence in the year in which the machinery is first put into use.

31B.

Subject to this Schedule, where a person incurs capital expenditure on the purchase or acquisition of the right to the use of a computer software, there shall be deducted, in computing his gains or profits for the year of income in which the software is first used and for subsequent years of income, an amount equal to one-fifth of that expenditure.

Amendment of 30.The Third Schedule to the Income Tax Act is the Third tended in paragraph 5 - Schedule to Cap.470.

597 No.

8 2009 Finance (a) by inserting a new subparagraph immediately after subparagraph (b)(ii) as follows (iii) bearer bonds with a maturity of ten years and above, ten percent .of the gross amount payable.

(b) by deleting the words "and provided that tax has not been deducted under section 37" appearing in subparagraph (d)(i); (c) by deleting the words and provided that tax has not been deducted under section 37" appearing in subparagraph (d)(ii).

PART V MISCELLANEOUS 30A.

Section 2 of the National Assembly Remuneration Amendment of section 2 of Cap 5.

Act is amended in subsection (2) (a) by deleting paragraph (a) and substituting therefor the following new paragraph - (a) the persons for the time being holding the several offices specified in the first column of Part II of the First Schedule shall receive a sitting allowance at the rates respectively specified in the second column of that Schedule in respect of every meeting attended; (b) by deleting the proviso.

598 No.

8 Finance 2009 Amendment 31.

The Bills of Exchange Act is amended in section 2 by of section 2 of inserting the following new definitions in proper alphabetical Cap.

27.

sequence- "bank" has the meaning assigned in Cap.

488.

section 2 of the Banking Act; "Central Bank" means the Central Bank Cap.

491.

of Kenya established under section 3 of the Central Bank of Kenya Act; "cheque truncation" means a system of cheque clearing and settlement between banks based on electronic data or images or both electronic data and images, without the conventional physical exchange of instruments; "Minister" means the Minister for the time being responsible for matters relating to finance.

Amend ment 32.Section 49 of the Bills of Exchange Act is amended by of section 49 inserting the following new paragraph immediately after of Cap.

27.

paragraph (f) (ff) where a cheque has been presented in accordance with section 74A, the presentment of an image return document, as defined under section 74B(5), to the drawer or endorser, shall be deemed to be sufficient notice of dishonor.

Amendment 33.Section 52 of the Bills of Exchange Act is amended by of section 52 inserting the following subsection immediately after subsection of Cap.

27.

(4)- 599 No.

8 2009 Finance (5) Subsection (4) shall not apply in relation to- (a) presenting a cheque for payment under section 74A; or (b) a cheque which is paid following presentment under section 74A.

34.Section 74A of the Bills of Exchange Act is amended in Amendment subsection (6) by deleting the word "Authority" appearing in of section paragraph (b) and substituting therefor the words "Central 74A of Cap.

Bank".

27.

35.

Section 74B of the Bills of Exchange Act is amended in Amendment subsection (5) by deleting the words "rules of the clearing of section 74B house" and substituting therefor the words "Central Bank under of Cap.

27.

section 74C".

36.The Bills of Exchange Act is amended by inserting the Insertion of following new section immediately after section 74 B- section 74C in Cap.

27.

Regulations.

74C.

The Central Bank may make such regulations as may be necessary or expedient for giving effect to the provisions of this Act in respect of any matter or thing relating to cheque truncation.

37.

Kenya Airports Authority Act is amended by inserting Insertion of the following new section immediately after section 17 - sections 17A and 17B in Cap.

395.

Establishment of 17A.

There is established a Fund to be known Fund.

as the Kenya Airports Authority Fund (hereinafter referred to as "the Fund").

Sources of Fund.

17B.

There shall be paid into the Fund 600 No.

8 Finance 2009 (a) all proceeds from the charge collected.

under the Air Passenger Cap.475.

Service Charge Act; (b) any monies appropriated by Parliament for the purposes of the Authority; (c) the rates, charges, dues, or fees levied by the Authority under this Act; (d) such sums as may be the payable to Authority pursuant to this Act or any other written law, or pursuant to any gift or trust; and (e) all moneys from any other sources provided for or donated or lent to the Authority.

Payments out of 17C.

There shall be paid out of the Fund any the Fund.

expenditure incurred by the Authority in the .exercise of its powers or the performance of its functions under this Act.

601 2009 Finance No.

8 38.

Section 6 of the Traffic Act is amended in subsection Amendment (1A) by deleting the proviso and substituting therefor the of section 6 of following new proviso Cap.403.

Provided that a commercial vehicle which requires inspection shall be inspected and registered within thirty days of release by the customs.

39.

Section 9 of the Traffic Act is amended Amendment of section 9 of (a) by deleting subsection (2); Cap.403.

(b) in subsection (3), by deleting the expression "subsections (1) and (2)" and substituting therefor the expression "subsection (1)"; (c) in subsection (5), by deleting the expression "subsection (1), (2) and (4)" and substituting therefor the expression "subsection (1) and (4)".

40.

Section 98 of the Traffic Act is amended in subsection Amendment (4) by deleting the words "two years" and substituting therefor of section 98 the words "one year".

of Cap.403.

41.

Section 10 of the Insurance (Motor Vehicle Third Party Amendment Risks) Act is amended by deleting subsection (5).

of section 10 of Cap 405.

42.

The Air Passenger Service Charge Act is amended in Amendment section 2, by inserting the following new definition in proper of section 2 of alphabetical sequence Cap 475.

"Kenya Revenue Authority" means the Authority by that name established under Cap.469 section 3 of the Kenya Revenue Authority Act.

602 No.

8 Finance 2009 Amendment 43.

Section 5 of the Air Passenger Service Charge Act is of section 5 of amended - Cap 475.

(a) in subsection (2), by deleting the word "Government" and substituting therefor the word "Commissioner"; (b) in subsection (5), by deleting the word "Government" and substituting therefor the word "Commissioner".

Insertion of 44.

The Air Passenger Service Charge Act is amended by new section inserting the following section immediately after section 6 6A in Cap.475.

Charge to be paid 6A.

The Commissioner shall into the Kenya pay the charge collected by Airports Authority him under this Act into the Fund.

Kenya Airports Authority Fund Cap.

395.

established under the Kenya Airports Authority Act, after deducting the expenses of the Kenya Revenue Authority for the collection of the charge.

Amendment 45.Section 31 of the Capital Markets Act is amended in of section 31 subsection (1) by deleting the words "trade in" appearing of Cap.485A.

immediately after the words "dealer shall" and substituting therefor the words "transfer".

Amendment 46.

Section 23 of the Insurance Act is amended by inserting of section 23 the following new subsections immediately after subsection (4) - of Cap.487.

603 2009 Finance No.

8 (4A).

No person shall - (a) control, or be beneficially entitled, directly or indirectly, to more than twenty-five per cent of the listed share capital or voting rights of an insurer; or (b) be entitled to appoint more than twenty-five per cent of the board of directors of an insurer; or (c) be entitled to receive more than twenty-five per cent of the aggregate dividends of an insurer in any given financial year: Provided that this subsection shall not apply to (i) a corporate entity licensed by an insurance, banking, pensions or securities regulator in Kenya; or (ii) a foreign corporate entity licensed by an insurance, banking, pensions or securities regulator in it's country of origin; Or (iii) the Government of Kenya; (iv) a state corporation within the meaning of the State Corporations Cap.446.

Act.

(4B) No person shall be appointed as an executive director, managing director, principal officer or other senior management official of an insurer if such person- 604 No.

8 Finance 2009 (i) controls, or is beneficially entitled, directly or indirectly, to more than twenty per cent of the listed share capital or voting rights of the insurer; or (ii) is entitled to appoint more than twenty per cent of the Board of Directors of the insurer; or (iii) is entitled to receive more than twenty per cent of the aggregate dividends of the insurer in any given financial year.

(4C) A person who, at the commencement of subsections (4A) and (4B), holds any right, interest or office in an insurer contrary to the provisions of those subsections, shall comply December, 2010.

with the requirements thereof by the 31 st Amendment 47.

Section 41 of the Insurance Act is amended in of section 41 subsection (8) by deleting the proviso and substituting therefor of Cap.487 the following - Provided that (a) this subsection shall not apply to - 605 2009 Finance No.

8 (i) buildings and other real property owned by the insurer jointly with any organisation; (ii) investments referred to in section 50(3); (iii) cash held by banks on behalf of the insurer in current or savings accounts, or subject to section 50(4)(g), fixed deposits; and (b) investments of long term insurance business or a general insurance business in a company or a group of companies which is a bank or a financial institution, or a group of banks or financial institutions shall, pursuant to section 50(10), not exceed ten percent.

Insertion of 48.

The Insurance Act is amended by inserting a new section section 76A in Cap 487.

immediately after section 76 as follows- Insurance cover 76A.Upon change of ownership of a motor upon change of vehicle, an insurer shall - ownership of motor vehicle.

(a) only issue a temporary policy for a period not exceeding three months, pending the registration of the motor vehicle in the name of the new owner; 606 No.

8 Finance 2009 (b) not renew the temporary cover or issue any new policy in respect of the motor vehicle, unless the new owner' provides proof of the registration of the motor vehicle in his name by the Registrar of Motor Vehicles.

Amendment 49.Section 188 of the Insurance Act is amended in of section 188 November" and of Cap.487 subsection (2) by deleting the expression "30 th September".

substituting therefor the expression "30th Amendment 50.

Section 203 of the Insurance Act is amended in of section 203 subsection (3) by deleting expression "(2)" appearing before the of Cap.487 words "a penalty equal to" and substituting therefor expression "(1 Amendment 51.

The First Schedule to the Insurance Act is amended in of the Second paragraph 3 by deleting the expression "(g)" appearing in Schedule to subparagraph (3) and substituting therefor the expression "(h)".

Cap.487.

Amendment 52.

Section 2 of the Banking Act is amended - of section 2 of Cap.488.

(a) by inserting the following new definition in proper alphabetical sequence "agency" means an entity contracted by an institution and approved by the Central Bank to provide the services of the institution on behalf of the institution, in such manner as may be prescribed by the Central Bank: 607 No.

8 Finance 2009 Provided that where such entity is a co- operative society, prior approval to provide the services shall be sought from the Sacco Societies Regulatory Authority established under the SACCO Societies Act, 2008.

No.14 of 2008.

by deleting the (b) in the definition of the word -bank- words "and includes the Co-operative Bank of Kenya Limited"; (c) in the definition of -branch-, by inserting the word immediately before the word "permanent- -premises"; (d) by inserting the following new definition in proper alphabetical sequence - "place of business" means any premises, other than the head office, including a branch, an agency or a mobile unit, or such other premises as may, from time to time, be prescribed by the Central Bank, at which an institution transacts banking or financial business in Kenya and which is open to the public.

53.

Section 3 of the Banking Act is amended in subsection Amendment (1) by inserting the words -or a duly approved agency of section 3 of conducting banking business on behalf of an institution" Cap.488.

immediately after the word -institution- appearing in paragraph (a).

54.

Section 12 of the Banking Act is amended - Amendment of section 12 (a) by deleting the words -in Kenya- appearing in the of Cap.488.

introductory portion; 608 No.

8 Finance 2009 (b) in paragraph (b) - (i) by deleting subparagraph (ii) of the proviso and substituting therefor the following new subparagraph (ii) a shareholding in any corporation established for the purpose of promoting development on Kenya and approved by the Minister; or in a foreign company which is licensed to carry on the business of the institution in its country of incorporation and approved by the Central Bank; (ii) by inserting a new subparagraph in the proviso immediately after paragraph (ii) as follows - (iii) approval granted by the Central Bank shall be subject to such conditions as the Central Bank may deem appropriate.

Amendment 55.

Section 16 of the Banking Act is amended in subsection of section 16 (1) by inserting the words "or a duly approved agency of Cap.488.

conducting banking business on behalf of an institution" immediately after the word "licence".

Amendment 56.

Section 20 of the Banking Act is amended - of section 20 of Cap.488.

(a) in subsection (1), by deleting the words "bad and doubtful debts" and substituting therefor the words "loans, advances and other assets"; 609 2009 Finance No.

8 in subsection (2), by deleting the words "bad (b) and doubtful debts" wherever they occur and substituting therefor the words "loans, advances and other assets".

57.

Section 27 of the Banking Act is amended by inserting Amendment the words "or their duly authorised agencies" after the word of section 27 "institutions" wherever it occurs.

of Cap.488.

58.

Section 28 of the Banking Act is amended in subsection Amendment (1) by inserting the words "and their agencies" immediately after of section 28 the word "institutions" wherever it occurs.

of Cap.488.

Section 31 of the Banking Act is amended in subsection Amendment 59.

(3) of section 31 of Cap.488.

(a) by inserting the words "fiscal or tax agency, fraud investigations agency" immediately after the words "financial regulatory authority" appearing in paragraph (a); (b) by inserting the following proviso at the end of paragraph (a) Provided that the sharing of information with institutions outside Kenya shall only apply where there is a reciprocal arrangement.

60.

Section 32 of the Banking Act is amended in subsection Amendment (1), by deleting the words "institution and its" and substituting of section 32 therefor the words "institution and its agencies and of their".

of Cap.488.

61.

Amendment Section 54 of the Banking Act is amended in paragraph (c) by deleting the words "other than the Co-operative Bank of of section 54 Kenya".

of Cap.488.

610 Finance 2009 No.

8 Amendment 62.Section 26 of the Central Bank of Kenya Act is amended of section 26 by inserting the following proviso at the end of subsection (1) of Cap.491.

Provided that if, at any time, the Bank is unable to maintain the reserve of external assets required under this subsection, it shall provide the Minister with a time- bound remedial plan.

Repeal and 63.

The Central Bank of Kenya Act is amended by repealing replacement section 33L and replacing it with the following new section - of section 33L of Cap.491.

General penalty under 33L.

A person convicted of an offence under Part.

this Part for which no other penalty is provided shall liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both.

Insertion of 64.

The Central Bank of Kenya Act is amended by inserting section 56A the following new section immediately after section 56 - in Cap.491.

General Penalty.

56A.

A person convicted of an offence under this Act for which no other penalty is provided shall be liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both.

Amendment 65.

The Kenya Post Office Savings Bank Act is amended in of section 4 of section 4 by inserting a new paragraph immediately after Cap.

493B.

paragraph (f) as follows (ff) to deal in foreign exchange.

611 2009 Finance No.

8 66.

The Foreign Investment Protection Act is amended by Insertion of inserting the following new section immediately after section Itction 8B in 8A - Cap.518.

Special 8B.

(1) The Minister for Finance may, from arrangement for time to time, by notice in the Gazette declare investment that the arrangement specified in the notice, promotion and protection.

being arrangements made with the Government of any country with a view to promoting and protecting the investments of that country in Kenya, shall have effect according to its tenor.

(2) A notice under this section may be amended or revoked by a subsequent notice and an amendment or revoking notice may contain such transitional provision or termination date as the Minister may consider necessary or expedient.

67.Section 2 of the Retirement Benefits Act is amended in Amendment the definition of the word "actuary" by deleting the words of section 2 of "recognized as such by" and substituting therefor the words No.

3 of 1997.

"who is a Fellow of'.

68.Section 37 of the Retirement Benefits Act is amended in Amendment the proviso by deleting the expression "five million" and of section 37 substituting therefor the expression "one hundred million".

of No.

3 of 1997.

69.Section 38 of the Retirement Benefits Act is amended in Amendment subsection (1) by adding the following immediately after of section 38 paragraph (c) - of No.

3 of 1997.

612 No.

8 Finance 2009 "or in the case of scheme funds which comprise any statutory contributions, be placed in any investment other than Government securities or infrastructure bonds issued by public institutions".

Repeal and 70.

The Coffee Act is amended by repealing section 18 and replacement replacing it with the following new section - of section 18 of No 9 of 2001.

Kinds of 18.

Licences under section 17 shall be of the licences.

following kinds (a) a coffee dealers licence, authorizing the holder to- (i) buy or deal in clean coffee produced in Kenya or to import clean coffee from outside Kenya, and to process, in Kenya for local sale or export, coffee of any country of origin; and (ii)deal in roasting, blending and packaging coffee for local sale or export, (b) a coffee miller's licence authorizing the holder to conduct the business of milling; (c) a marketing agent's licence, authorizing the holder to conduct the business of marketing coffee and auctioneering; (d) a warehouseman's licence, authorizing the holder to conduct the business of warehousing coffee; 613 2009 Finance No.

8 (e) a pulping station licence, authorizing the holder to operate a pulping station.

71.

Section 35 of the Persons with Disabilities Act, 2003 is Amendment amended by deleting subsection (2) and substituting therefor the_ of section 35 following new subsection - of 14 of 2003.

(2) The Minister responsible for finance may, by notice in the Gazette, prescribe the procedure for application for and grant of exemption under this section.

72.

Section 34 of the Microfinance Act is amended- Amendment of Section 34 of No.19 of 2006.

(a) by inserting the following new subsection immediately after subsection (3) - (3A).

The Deposit Protection Fund Board and institutions licensed under this Act shall, in the ordinary course of business and in such manner and to such extent as the Minister may, in regulations, prescribe, exchange such information on non performing loans as may, from time to time, be specified by the Central Bank in regulations.

(b) in subsection (4) by inserting the word "other" immediately before the word "information".

73.

Section 48 of the Microfinance Act is amended by Amendment inserting the following new subsection immediately after of section 48 of No.19 of subsection (2) - 2006.

614 No.

8 Finance 2009 (2A) The Central Bank may issue directions and guidelines to institutions generally for the better carrying out of their functions, and in particular, with respect to (a) the standards to be adhered to in the conduct of their business in Kenya or in countries where their branches or subsidiaries are located; (b) guidelines to be adhered to by institutions in order to maintain a stable and efficient deposit taking microfinance system.

Amendment 74.

Section 6 of the Kenya Roads Board Act, 1999 is to section 6 of amended in subsection (2)(d) No.

7 of 1999.

(a) by deleting the expression "twenty percent" appearing at the beginning of paragraph (i) and substituting therefor the expression "twenty-two percent, which shall be deposited into a special bank account to be called Constituency Roads Fund Account to be maintained by every Constituency;" (b) deleting the existing paragraph (ii) and substituting therefor the following 615 2009 Finance No.

8 "(ii) ten percent of the monies from the Fund is allocated for the maintence or development of link roads between constituencies and to serve as Government counterpart funds in funding works on rural roads, to be administered by the Kenya rural Roads Authority and that the said percentum shall be equally distributed to the Constituencies where Kenya Rural Roads Authority has the mandate.

75.

The Kenya Roads Board Act is amended by repealing Repeal and Section 17 and replacing it with the following new sections - replacement of section 17 of Act No.

7 of 1999 Establishment, 17.(1) There is hereby established, for every powers and constituency, a committee to be known as the functions of the Constituency Roads Committee.

Constituency roads Committee (2) The Constituency Roads Committee shall comprise of (a) four members from the respective Constituency Development Fund Committee; (b) the Member of Parliament for the Constituency; (c) a representative of the Kenya Rural Roads Authority in the region, who shall be the Secretary to the Committee; 616 No.

8 Finance 2009 (d) a representative from the Ministry responsible for planning; (e) the respective District Commissioner or his representative; and (f) two members co-opted by the Committee to represent such special interests with regard to roads as the committee may determine from time to time, and who shall not have voting rights; (3) The Constituency Roads Committee shall designate two of the members appointed under paragraph (a) of subsection (2) to be the Chairman and Vice Chairman of the Committee respectively, and any two members from subsection (2)(a) designated by the Committee and the Kenya Rural Roads Authority accountant shall be the signatories to the Constituency Roads Fund account established by the constituency.

(4) The function of the Constituency roads Committee shall be to advise the Kenya Rural Roads Authority on the formulation of the annual roads programme and the roads to be included therein.

(5) The Constituency Roads Committee shall meet at least four times a year, and a quorum shall comprise of the chairman or vice-chairman and four other members.

617 2009 Finance No.

8 17A.

(1) There is hereby established for Establishment, every Constituency a committee to be known as powers, and the Constituency Roads Tender Committee.

functions of the Constituency Roads Tender (2) The Constituency Roads Tender Committee.

Committee shall comprise of (a) three representatives of the Constituency Development Fund Committee who are members of the Constituency Roads Committee; (b) a representative of the Kenya Rural Roads Authority in the Region; (c) the procurement officer of the Kenya Rural Roads Authority or his in the region, representative, who shall be the Secretary.

(3) The members of the Constituency Roads Tender Committee shall appoint two of the members referred to in paragraph (2)(a) to be chairman and vice-chairman of the Committee respectively: Provided that the Chairman of the Constituency Roads Committee shall not be eligible to be appointed chairman or vice- chairman of the Constituency Roads Tender Committee.

(S.

5) ks) O FIRST SCHEDULE O .o Amendment of the Fifth Schedule to the Customs and Excise Act, Cap 472.

FIFTH SCHEDULE PART I Delete the following tariff numbers, descriptions and rates of excise duty thereof - 1.

Tariff No.

Goods Description.

Rate of Duty *-11 10% Frozen orange juice, unfermented and not containing added spirit, whether or not containing 2009.11.00 rn added sugar or other sweetening matter.

.0 10% 2009.12.00 Orange juice not frozen, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter, of a brix value not exceeding 20.

Other orange juice, unfermented and not containing added spirit, whether or not containing 10% 2009.19.00 sugar or other sweetening matter.

10% Grape fruit juice, unfermented and not containing added spirit, whether or not containing 2009.21.00 added sugar or other sweetening matter.

Other grape fruit juice, unfermented and not containing added spirit, whether or not 10% 2009.29.00 z containing added sugar or other sweetening matter.

First Schedule (Contd.) Tariff No.

Goods Description.

Rate of Duty 2009.31.00 Juice of any other single citrus fruit, unfermented and not containing added spirit, whether or 10% not containing added sugar or other sweetening matter of a brix value not exceeding 20.

2009.39.00 Other juice of any other single citrus fruit, unfermented and not containing added spirit, 10% whether or not containing added sugar or other sweetening matter.

2009.41.00 Pineapple juice, unfermented and not containing added spirit, whether or not containing 10% added sugar or other sweetening matter, of a brix value not exceeding 20.

2009.49.00 Other pineapple juice, unfermented and not containing added spirit, whether or not 10% containing added sugar or other sweetening matter.

2009.50.00 Tomato juice, unfermented and not containing added spirit, whether or not containing added 10% sugar or other sweetening matter.

2009.61.00 Grape juice (including grape must), unfermented and not containing added spirit, whether or 10% not containing added sugar or other sweetening matter, of a brix value not exceeding 20.

2009.69.00 Grape juice (including grape must), unfermented and not containing added spirit, whether or 10% not containing added sugar or other sweetening matter.

2009.71.00 Apple juice, unfermented and not containing added spirit, whether or not containing added 10% sugar or other sweetening matter, of a brix value not exceeding 20.

O 2009.79.00 Other apple juice, unfermented and not containing added spirit, whether or not containing 10% O First Schedule (Contd.) OO Tariff No.

Goods Description.

Rate of Duty added sugar or other sweetening matter.

2009.80.00 Juice of any other single fruit or vegetable, unfermented and not containing added spirit, 10% whether or not containing added sugar or other sweetening matter.

2009.90.00 Mixtures of Juices, unfermented and not containing added spirit, whether or not containing 10% added sugar or other sweetening matter 2106.90.70 Concentrated beverages rendered ready for consumption by simple dilution with water (e.g.

10% syrups, cordials, squashes etc.) Shs.6 per litre as 2201.10.00 Mineral waters including natural or artificial mineral and aerated waters, not containing 10% ;11 added sugar or other sweetening matter nor flavoured 2201.90.00 Ice and snow; other natural or artificial mineral waters and aerated water, not containing Shs.

6 per litre or added sugar or the sweetening matter nor flavoured 10% 2202.10.00 Waters including Mineral waters and aerated waters, containing added sugar or other 10% sweetening matter or flavoured 2202.90.00 Other non- alcoholic beverages 10% 2712.10.00 Petroleum jelly 10% 3303.00.10 Perfumes and Toilet waters.

10% coo First Schedule (Contd.) ZP Goods Description.

Rate of Duty 00 Tariff No.

10% 3304.10.00 Lip make-up preparations 3304.20.00 Eye make-up preparations 10% 3304.30.00 Manicure or pedicure preparations 10% 3304.91.00 Other powders, whether or not compressed 10% 3304.99.00 Other beauty or make up preparations and preparations for the care of the skin (other than 10% medicaments), including sunscreen or sun tan preparations '11 0, t.) 3305.10.00 Shampoos 10% ,-) t.) 3305.20.00 Preparations for permanent waving or straightening of hair 10% 3305.30.00 Hair lacquers 10% 3305.90.00 Other preparations for the use on hair 10% 3307.10.00 Pre-shave, shaving or after-shave preparations 10% 3307.20.00 Personal deodorants and antiperspirants 10% 10% b.) 3307.30.00 Perfumed bath salts and other bath preparations o ,,c) First Schedule (Contd.) Tariff No.

Goods Description.

Rate of Duty 8 Other preparations for perfuming or deodorising rooms, including odoriferous preparations 10% VD 3307.49.00 use during religious rites 3307.90.00 Depilatories and other perfumed, cosmetic or toilet preparations, not elsewhere specified or 10% included 7101.10.00 Natural pearls 10% 7101.21.00 Cultured pearls, unworked 10% 7101.22.00 Cultured pearls, worked 10% ."Z1 rn 7102.10.00 Unsorted diamonds 10% At.4 rt 7102.31.00 Non-industrial diamonds, unworked or simply sawn, cleaved or bruted, but not mounted or 10% set.

7102.39.00 Non-industrial diamonds, worked, not mounted or set.

10% 7103.10.10 Tanzanite unworked or simply sawn, or roughly shaped.

10% 7103.10.20 Alexandrite unworked or simply sawn, or roughly shaped 10% QO 00 Goods Description.

Rate of Duty No.

Tariff Other precious stones, unworked or simply sawn, or roughly shaped 10% 7103.10.90 Rubies, sapphires and emaralds, otherwise worked.

10% 7103.91.00 Tanzanite, worked.

10% 7103.99.10 Alexandrite worked.

10% 7103.99.20 cr, Other precious stones and semi-precious stones, (other than diamonds), otherwise worked.

10% -1=.

7103.99.90 Peizo-electric quartz being synthetic or reconstructed precious or semi precious stones.

10% 7104.10.00 Other unworked or simply sawn or roughly shaped synthetic or semi precious stones.

10% 7104.20.00 Other synthetic or reconstructed precious or semi precious stones, worked.

10% 7104.90.00 Unwrought silver including silver plated with gold or platinum.

10% 7106.91.00 IC4 10% O 7106.92.00 Semi manufactured silver including silver plated with gold or platinum.

VZ First Schedule (Contd.) Ns s Rate of Duty Tariff No.

Goods Description.

7107.00.00 Base metals clad with silver, not further worked than semi manufactured.

10% 7108.11.00 Non-monetary gold (including gold plated with platinum), in powder form.

10% 7108.12.00 Other unwrought forms of gold, including gold plated with platinum, non-monetary.

10% 7108.13.00 Other semi manufactured forms of gold, (including gold plated with platinum.

10% 7109.00.00 Base metals, gold or silver, clad with gold, not further worked and semi manufactured.

10% 2t) Base metals, gold or silver, clad with gold, not further worked than semi manufactured.

10% 7111.00.00 7112.30.00 Ash containing precious metal or precious metal compounds.

10% 10% 7113.11.00 Articles of Jewellery and parts thereof, of silver, whether or not plated or clad with other precious metals.

7113.19.00 Articles of Jewellery and parts thereof, of other precious metal, whether or not plated or clad 10% with other precious metals.

7113.20.00 Articles of Jewellery and parts thereof, of base metal, whether or not plated or clad with 10% 00 First Schedule (Contd.) Tariff No.

Goods Description.

Rate of Duty precious metals.

10% 7114.11.00 Articles of gold smiths' or silversmiths' wears and parts thereof, of silver, whether or not plated or clad with other precious metals.

10% 7114.19.00 Articles of gold smiths' or silversmiths' wears and parts thereof, of other precious metals, whether or not plated or clad with other precious metals.

7114.20.00 Articles of gold smiths' or silversmiths' wears and parts thereof, of other base metal, clad 10% with other precious metals.

10% 7115.90.00 Other articles of precious metal or of metal clad with other precious metal.

10% Articles of natural or cultured pearls.

7116.10.00 7116.20.00 Articles of precious or semi-precious stones (natural, synthetic or reconstructed).

10% 7117.11.00 Cuff links and studs, of base metal, whether or not plated with precious metal.

10% O 10% O Other imitation jewellery or base metal, whether or not plated with precious metal.

VD 7117.19.00 First Schedule (Contd.) OO Tariff No.

Goods Description.

Rate of Duty 2204.21.00 Other wine; grape must with fermentation prevented or arrested by the addition of alcohol, Shs.70 or 50% in containers of 2 litres or less.

per litre 2204.29.00 Other wine, grape must with fermentation prevented or arrested by the addition of alcohol, Shs.70 or 50% or in containing of more than 2 litres per litre Other grape must wine Shs.70 or 50% 2204.30.00 per litre Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances, in Shs.70 or 50% 2205.10.00 per litre containers of 2 litres or less 2205.90.10 Vermouth and other wine of such fresh grapes flavoured with plants or aromatic substances, Shs.70 or 50% in containers of more than 2 litres per litre 2206.00.10 Cider Shs.54 per litre 2206.00.20 Opaque beer (eg Chibuku) Shs.54 per litre 2206.00.90 Other fermented beverages, mixtures of fermented beverages and non-alcoholic beverage Shs.54 per litre not elsewhere specified or included.

2207.10.00 Under natured ethyl alcohol of an alcoholic strength by volume of 80% vol.

or higher.

Shs.120 or 65% per litre 2208.20.00 Under natured ethyl alcohol of an alcoholic strength by volume of less than 80% vol.

spirits Shs.120 or 65% ao per litre Rate of Duty 00 Tariff No.

Goods Description.

7117.90.00 Other imitation jewellery.

10% 7118.10.00 Coin (other than gold coin), not being legal tender.

10% 2.

Insert the following tariff numbers, descriptions and rates of excise duty thereof Tariff No.

Goods Description.

Rate of Duty Frozen orange juice, unfermented and not containing added spirit, whether or not containing 7% 2009.11.00 added sugar or other sweetening matter.

Orange juice not frozen, unfermented and not containing added spirit, whether or not 7% 2009.12.00 containing added sugar or other sweetening matter, of a brix value not exceeding 20.

Other orange juice, unfermented and not containing added spirit, whether or not containing 7% 2009.19.00 sugar or other sweetening matter.

7% Grape fruit juice, unfermented and not containing added spirit, whether or not containing 2009.21.00 added sugar or other sweetening matter.

7% ct, 2009.29.00 Other grape fruit juice, unfermented and not containing added spirit, whether or not O containing added sugar or other sweetening matter.

First Schedule (Contd.) OO Tariff No.

Goods Description.

Rate of Duty Juice of any other single citrus fruit, unfermented and not containing added spirit, whether 7% 2009.31.00 or not containing added sugar or other Sweetening matter of a brix value not exceeding 20.

Other juice of any other single citrus fruit, unfermented and not containing added spirit, 7% 2009.39.00 whether or not containing added sugar or other sweetening matter.

Pineapple juice, unfermented and not containing added spirit, whether or not containing 7% 2009.41.00 added sugar or other sweetening matter, of a brk value not exceeding 20.

2009.49.00 Other pineapple juice, unfermented and not containing added spirit, whether or not 7% containing added sugar or other sweetening matter.

Tomato juice, unfermented and not containing added spirit, whether or not containing added 7% 2009.50.00 sugar or other sweetening matter.

Grape juice (including grape must), unfermented and not containing added spirit, whether or 7% 2009.61.00 not containing added sugar or other sweetening matter, of a brix value not exceeding 20.

Grape juice (including grape must), unfermented and not containing added spirit, whether or 7% 2009.69.00 not containing added sugar or other sweetening matter.

2009.71.00 Apple juice, unfermented and not containing added spirit, whether or not containing added 7% sugar or other sweetening matter, of a brix value not exceeding 20.

2 Other apple juice, unfermented and not containing added spirit, whether or not containing 7% 00 2009.79.00 First Schedule (Contd.) Tariff No.

Goods Description.

Rate of Duty 00 added sugar or other sweetening matter.

7/0 2009.80.00 Juice of any other single fruit or vegetable, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter.

Mixtures of Juices, unfermented and not containing added spirit, whether or not containing 7% 2009.90.00 added sugar or other sweetening matter 2201.10.00 Mineral waters and aerated waters, including natural or artificial not containing added sugar Shs 3 or 5% per or other sweetening matter nor flavoured litre 2201.90.00 Other natural or artificial waters not containing added sugar or other sweetening matter nor Shs 3or 5%per flavoured, ice and snow; litre 2202.10.00 Waters, including Mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured Other non- alcoholic beverages 7% 2202.90.00 Stout and porter beer made from malt Shs.54 per litre 2203.00.10 2203.00.90 Other beer made from malt Shs.54 per litre 2204.10.00 Sparkling wine of fresh grapes, including fortified wines Shs.70 or 50% per litre First Schedule (Contd.) OO Tariff No.

Goods Description.

Rate of Duty obtained by distilling grape wine or grape mare Whiskies.

Shs.120 or 65% 2208.30.00 per litre 2208.40.00 Rum and other spirits obtained by distilling fermented sugar cane products.

Shs.120 or 65% per litre 2208.50.00 Gin and Geneva Shs.120 or 65% per litre 2208.60.00 Vodka Shs.120 or 65% per litre 2208.90.10 Liqueurs and cordials.

Shs.120 or 65% per litre 2208.90.10 Distilled spirits (e.g.

Konyagi, Uganda Waragi) Shs.120 or 65% per litre 2208.90.90 Other spirits and other spirituous beverages Shs.120 or 65% per litre Petroleum jelly 5% 2712.10.00 Perfumes and Toilet waters.

5% 3303.00.00 Lip make-up preparations 5% 3304.10.00 3304.20.00 Eye make-up preparations 5% 0 First Schedule (Contd.) Tariff No.

Goods Description.

Rate of Duty 3304.30.00 Manicure or pedicure preparations 5% 3304.91.00 Other powders, whether or not compressed 5% 3304 .99.00 Other beauty or make up preparations and preparations for the care of the skin (other than 5% medicaments), including sunscreen or sun tan preparations 3305.10.00 Shampoos 5% *21 5% At.) 3305.20.00 Preparations for permanent waving or straightening of hair N 3305.30.00 Hair lacquers 5% 3305.90.00 Other preparations for the use on hair 5% 3307.10.00 Pre-shave, shaving or after-shave preparations 5% 3307.20.00 Personal deodorants and antiperspirants 5% 3307.30.00 Perfumed bath salts and other bath preparations 5% 3307.49.00 Other preparations for perfuming or deodorising rooms, including odoriferous preparations 5% OO used during religious rites 0 First Schedule (Contd.) 2A.

Delete the following tariff numbers, descriptions and the corresponding rates of excise duty.

2106.90.70 Concentrated beverages rendered ready for consumption by simple dilution with water (e.g 10% syrups, cordials, squabbles etc) 2204.10.00 Sparkling wine of fresh grapes, including fortified wines Shs.70 per litre or 50% 2204.21.00 Other wine; grape must with fermentation prevented or arrested by the addition of alcohol, in Shs.70 per litre or 50% "11 containers of 2 litres or less.

0AL.

2204.29.00 Other wine, grape must with fermentation prevented or arrested by the addition of alcohol, or Shs.70 per litre in containing of more than 2 litres or 50% 2204.30.00 Other grape must wine Shs.70 per litre or 50% 2205.10.00 Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances, in Shs.70 per litre containers of 2 litres or less or 50% 2205.90.10 Vermouth and other wine of such fresh grapes flavoured with plants or aromatic substances, in Shs.70 per litre containers of more than 2 litres or 50% 2207.10.00 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol.

or higher.

Shs.120 per 0 litre or 65% 00 00 First Schedule (Contd.) 2208.20.00 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol.

spirits Shs.120 per obtained by distilling grape wine or grape mare.

litre or 65% Whiskies.

Shs.120 per 2208.30.00 litre or 65% 2208.40.00 Rum and other spirits obtained by distilling fermented sugar cane products.

Shs.120 per litre or 65% "T1 Cr 2208.50.00 Gin and Geneva Shs.120 per litre or 65% Vodka Shs.120 per 2208.60.00 litre or 65% Liqueurs and cordials.

Shs.120 per 2208.90.10 litre or 65% Distilled spirits (e.g.

Konyagi, Uganda Waragi) Shs.120 per 2208.90.10 litre or 65% Other spirits and other spirituous beverages Shs.120 per 2208.90.90 litre or 65% OO First Schedule (Contd.) OO the following tariff numbers descriptions and the corresponding rates of excise duty.

2B.

Insert 2106.90.90 Other food preparations not elsewhere specified or included 7% 2204.10.00 Sparkling wine of fresh grapes, including fortified wines Shs.70 per litre or 35% 2204.21.00 Other wine; grape must with fermentation prevented or arrested by the addition of alcohol, in Shs.70 per litre containers of holding 2 litres or less.

or 35% 2204.29.00 Other wine, grape must with fermentation prevented or arrested by the addition of alcohol, in Shs.70 per litre '11 rn containers holding more than 2 litres or 35% Lo, 2204.30.00 Other grape must Shs.70 per litre or 35% 2205.10.00 Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances, in Shs.70 per litre containers of holding 2 litres or less or 35% 2205.90.10 Vermouth and other wine of such fresh grapes flavoured with plants or aromatic substances, Shs.70 per litre in containers holding more than 2 litres or 35% 2207.10.00 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol.

or higher.

Shs.120 per litre or 35% 2208.20.00 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol.

spirits Shs.120 per 00 litre or 35% First Schedule (Contd.) obtained by distilling grape wine or grape marc.

00 Shs.120 per 2208.30.00 Whiskies.

litre or 35% 2208.40.00 Shs.120 per Rum and other spirits obtained by distilling fermented sugar cane products.

litre or 35% 2208.50.00 Gin and Geneva Shs.120 per litre or 35% 2208.60.00 Vodka Shs.120 per litre or 35% 2208.70.00 Liqueurs and cordials.

Shs.120 per litre or 35% 2208.90.10 Distilled spirits (e.g.

Konyagi, Uganda Waragi) Shs.120 per litre or 35% 2208.90.90 Other spirits and other spirituous beverages Shs.120 per litre or 35% 3.

Delete the existing Part III and insert the following new Part III- 1.

Excise duty on beer not made from malt shall be Shs.45 per litre.

2.

Mobile cellular phone services shall be charged excise duty at the rate of 10% of their excisable value.

3.

Other wireless telephone services shall be charged excise duty at the rate of 10% of their excisable value.

OO First Schedule (Contd.) 4.

All imported used computers of more than three years from the date of manufacture shall attract excise duty at the rate of 25%.

A co 5.

Plastic shopping bags shall be charged excise duty at the rate of 50% of their excisable value.

zO co (S.14) SECOND SCHEDULE 2 (Amendment of the Fifth Schedule to the QO Value Added Tax Act, Cap.

476.) FIFTH SCHEDULE.

PART A1.

Amend paragraph 6 by inserting the words "gazetted" immediately before the word -exporters".

2.

Amend paragraph 9 by inserting the words "and taxable supplies in respect of tea or coffee bought from the auction centres provided the tea or coffee is for export" immediately after the words "tea auction centres".

a co 3.

Insert the following new paragraphs immediately after paragraph 18 - 19.

The supply of taxable goods or taxable services for use in the construction of grain silos upon approval by the Director of Agriculture.

20.

The supply of taxable goods, including motor vehicles, and taxable services to Kenya Red Cross Society.

21.

The supply of taxable goods and taxable services to a film producer approved by the Minister responsible for Information.

O4.

Insert the following new paragraph immediately after paragraph 21 - O Second Schedule (Contd.) OO 22.

The supply of taxable services to ships.

PART B Insert in their numerical order the following tariff numbers and the descriptions thereof- Tariff No.

Tariff Description 3702.51.00 Other photographic film on rolls, sensitized, unexposed, of any material other than paper, paperboard or textiles; for colour photograph (polychlrome) of a width not exceeding 16mm and of a length not exceeding 14m.

3702.52.00 Other photographic film on rolls, sensitized, unexposed, of any material other than paper, paperboard or textiles; for colour photograph (polychlrome) of a width not exceeding 16mm and of a length exceeding 14m.

3702.53.00 Other photographic film on rolls, sensitized, unexposed, of any material other than paper, paperboard or textiles; for colour photograph (polychlrome) of a width exceeding 16mm but not exceeding 35mm and of a length not exceeding 30m, for slides.

3702.54.00 Other photographic film on rolls, sensitized, unexposed, of any material other than paper, paperboard or textiles; for colour photograph (polychlrome) of a width exceeding 16mm but not exceeding 35mm and of a length exceeding Second Schedule (Contd.) Tariff No.

Tariff Description oo 30m other than for slides.

3702.55.00 Other photographic film on rolls, sensitized unexposed, of any material other than paper, paperboard or textiles; for colour photograph (polychlrome) of a width exceeding 16mm but not exceeding 35mm and of a length exceeding 30m.

8521.90.00 Other video recording or reproducing apparatus whether or not incorporating a video tuner.

8525.50.00 Transmission apparatus.

8525.60.00 Transmission apparatus incorporating reception apparatus.

8501.31.00 DC generators of an output not exceeding 750w 8501.32.00 DC generators of an output exceeding 750w but not exceeding 75kw O 8501.33.00 DC generators of an output exceeding 75kw but not exceeding 375kw A0 8501.34.00 DC generators of an output exceeding 375kw c") 8502.11.00 Generating sets of output not exceeding 75 KVA 8502.12.00 Generating sets an output exceeding 75 KVA but not exceeding 375 KVA 8502.13 .00 Generating sets of an output exceeding 375 KVA 8502.20.00 Generating sets with spark ignition internal combustion piston engines 8502.31.00 Wind powered generating sets 8502.39.00 Other generating sets 8525.80.00 Television cameras, digital cameras and video camera recorders.

8712.00.00 Bicycles and other cycles (including delivery tricycles), not motorised.

9002.11.00 Lenses for cameras, projectors or photographic enlargers or reducers.

9006.53.00 Other cameras for roll film of a width of 35 mm.

O 9006.91.00 Parts and accessories fOr cameras.

Second Schedule (Contd.) O Tariff No.

Tariff Description 9010.50.00 Other apparatus and equipment for photographic (including cinematographic) laboratories; negatoscopes.

9006.69.00 Other photographic flashlight apparatus and flash bulbs.

PART C ZERO RATED GOODS 1.

In paragraph 9 by deleting the word "other".

2.

Deleting the existing paragraph 12 and inserting the following new paragraph 12 12.

Other special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example breakdown lorries, spraying lorries, mobile workshops, mobile radiological unit, refrigerated trucks, garbage collection trucks and insulated milk tankers).

3.

In paragraph 17 by inserting the word "and parts" immediately after the words "agricultural ao tractors" appearing at the start of the paragraph.

Second Schedule (Contd.) 4.

By adding a new paragraph after paragraph 25 26.

Locally produced and ginned cotton.

.

Frequently asked questions

What is M-Wakili?

M-Wakili (Wakili AI) is an advanced AI-driven legal aide proficient in interpreting Kenyan law.
This tool is useful for lawyers, law students, and the public, providing exhaustive and concise solutions to legal issues.
M-Wakili is more than an information database, it dissects and analyzes legal documents, clarifying their essence and implications to answer queries accurately. Alongside its legal expertise, M-Wakili also produces persuasive written content.
The primary aim of M-Wakili is to provide world-class legal support to people from all walks of life, while also aiding the advancement of law professionals by enhancing research efficiency.
This innovative platform promises to revolutionize the legal field, enhancing the accessibility and effectiveness of legal expertise.

Will I get immediate answers to my legal questions 24/7?

Yes the service is available 24/7 and you will get answers to your legal questions within seconds.

How does M-Wakili work?

M-Wakili is a custom trained AI model that uses algorithms and machine learning to understand and answer a user's questions. It bases its responses on the existing Kenyan laws and regulations.

Is M-Wakili accurate?

Yes, M-Wakili is designed to provide accurate and reliable responses based on Kenyan Law and is considered more accurate than almost all AI models including ChatGPT. Additionally, it is constantly being updated and improved to ensure it is aware of the occurring changes in the laws and regulations.
If you find any model that is more accurate than M-Wakili, please let us know and we might give you a free subscription or a *refund. (We reserve the right to determine the accuracy of the model and if you should be given a refund or free subscription. Our terms and conditions apply.)

Who can use M-Wakili?

Everyone can use M-Wakili. Lawyers and law students can use it as a legal research tool, and the general public can use it to get answers to their legal queries.

How can I access M-Wakili?

You can access M-Wakili through our website. Just type in your question, and M-Wakili will provide the answers.

Is M-Wakili a substitute for a human lawyer?

No it cannot and will not be, M-Wakili is designed to assist and provide legal information and is great at that. However, there are still situations where the expertise and personal touch of a real lawyer is necessary, such as in court representation and negotiations.
Fun fact, most of our paying users are lawyers! They use M-Wakili to help them with legal research and analysis.

Is AI going to replace lawyers?

No. M-Wakili AI is great for helping real-life lawyers with legal work and assisting people in understanding legal problems, providing many ways how to handle them. However, AI cannot replace the human touch of a real lawyer. There are still situations where the expertise and personal touch of a real lawyer is necessary, such as in court representation and negotiations.
In fact, most of our paying users are lawyers! They are excited about the possibilities of AI in the legal industry and are leveraging it to save time and energy and focus on higher-level tasks.
AI can make the legal market more convenient for both sides by allowing real lawyers to focus on specialized services while using AI to handle certain tasks.

Is my data secure with M-Wakili?

Yes, we prioritize user data privacy and have implemented strict measures to ensure that your data is secure.

Can M-Wakili represent me in court?

Not yet, M-Wakili cannot represent you in court. It can help you understand the law and your legal situation, but you will need a human lawyer for court representation.

Do I need to pay for M-Wakili services?

Currently, we offer basic features for free while premium services require a subscription fee. Please visit our pricing page for more details.

How can M-Wakili help law students?

M-Wakili can assist law students in learning and practicing their legal research and analysis skills. It may also offer insights into current legal trends and issues, helping prepare them for their future in law.

What does "HHH" mean?

Helpful, Honest, and Harmless (HHH) are three components of building AI systems (like M-Wakili) that are aligned with people’s interests.
- Helpful: M-Wakili wants to genuinely help the user
- Honest: M-Wakili shares information it believes to be true, and avoids made-up information
- Harmless: M-Wakili will not cooperate in aiding the user in harmful activities or lead the user to harms way