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Document Information:
- Year: 2012
- Country: Kenya
- Language: English
- Document Type: Domestic Law or Regulation
- Topic:
SPECIAL ISSUE
Kenya Gazette Supplement No. 35 (Acts No. 4)
REPUBLIC OF KENYA
KENYA GAZETTE SUPPLEMENT
ACTS, 2012
NAIROBI, 2nd May, 2012
CONTENT
Act—
PAGE
The Finance Act, 2012
147
PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI
147
THE FINANCE ACT
No. 4 of 2012
Date of Assent: 27th April, 2012
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
–
1
PART I
–
PRELIMINARY
1.
This Act may be cited as the Finance Act, 2012, and
shall come into operation, or be deemed to have come into •
operation, as follows –
(a) section 23, on the 1
St
January, 2006;
sections 6, 10, 11, 12(a), 13, 16(a)(i), 16(a)(ii)
18, 19, 20, 21 and 22(a)(i), on the 9
u
‘ June, 2011;
sections 3, 4, 5, 9, 14, 17, 22(b), 25, 27, 28, 29,
30, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43,
44, 49, 52, 53, 54, 55, 56, 57, 58, 59, 60 and 61,
on the 1
st
January, 2012;
(d)
sections 2, 7, 8, 24, 26, 31, 45, 46. 47.
48,
50 and
51, on the 2
nd
May, 2012;
(e)
sections 12(b), 15, 16(a)(iii), 16(b) and 22(a)(ii),
on such date as the Minister may, by notice in
the Gazette, appoint.
(b)
(c)
Short title and
commencement
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Finance
2012
PART II — CUSTOMS AND EXCISE
Amendment of
section 95 of
Cap.472.
Amendment of
section 119 of
Cap.472..
2.
Section 95 of the Customs and Excise Act is
amended —
(a)
in subsection (5)(a) by inserting the words “or
such further period, not exceeding six months, as
the Commissioner may, on the application of a
licensee, permit in respect of that licence” and
(b)
by inserting the following new Subsection after
subsection (5) —
“(6) The Commissioner shall ensure that a
metering device prescribed under
subsection (4) does not compromise the
safety of the goods or materials that are
manufactured by a licensee or the health
of the consumers of such goods or
materials”.
3.
Section 119 of the Customs and Excise Act is
amended by inserting the following new subsection
immediately after subsection (6) —
(7) Notwithstanding the provisions of subsection (1)
and (1A), the Minister may, by notice in the Gazette,
adjust the specific rate of excise duty to take account
of inflation.
Amendment of
the Fifth
Schedule to
Cap.472.
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Amendment
of
section 127C of
Cap.472.
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Finance
4.
Section 127C of the Customs and Excise Act is
amended in subsection (2) by adding the words “except in the
case of beer and wine, where the value shall be the retail
selling price as determined in accordance with the
regulations” immediately after the words “ex-factory selling
price”.
5.
Section 139 of the Customs and Excise Act is
amended in subsection
(1)
by inserting the following new
paragraph immediately after paragraph (h) —
“(i) that in the case of water, remission shall be
granted to such extent as the Minister may, by notice
in the Gazette, specify.”
6.
The Fifth Schedule to the Customs and Excise Act is
amended –
(a)
in the manner specified in Part I of the First
Schedule to this Act;
(b)
in the manner specified in Part II of the First
Schedule to this Act;
(c)
in the manner specified in Part III of the First
Schedule to this Act.
PART III
—
VALUE ADDED TAX
7.
The Seventh Schedule to the Value Added Tax Act is
amended in paragraph 6(5) by deleting the word “an”
appearing after the words “any person to use” and
substituting therefor the words “a General Packet Radio
Service (GPRS) enabled.”
Amendment of
section 139 of
Cap.472.
Amendment of
the Seventh
Schedule to
Cap.476.
No. 4
Amendment of
Eighth Schedule
to Cap 476.
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2012
8.
The Eighth Schedule to the Value Added Tax Act is
amended in Part A in the manner specified in the Second
Schedule to this Act.
PART IV
—
INCOME TAX
Amendment of
section 2 of
Cap.470.
9.
Section 2 of the Income Tax Act is amended by
inserting the following new definition in proper alphabetical
sequence-
“real estate investment trust” shall have the
Cap.
485A
meaning assigned to it in the Capital Markets Act;
“winnings” shall have the meaning assigned to it
Cap. 131
in the Betting, Lotteries and Gaming Act.
10.
Section 4 of the Income Tax Act is amended in
paragraph (c) by deleting the expression “respect of’.
11.
Section 5 of the Income Tax Act is amended in
subsection (4) —
(a)
by inserting the words “or his beneficiaries”
immediately after the words “full time employee”
wherever they occurs in paragraph (b);
(b)
by deleting paragraph (h) and substituting
therefor the following new paragraph —
(h) For the purposes of this subsection —
Amendment of
section
.
4 of
Cap 470.
Amendment of
section 5 of
Cap.470.
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(0
“beneficiaries” means the full time
employee’s spouse and not more
than four children whose age shall
not exceed twenty-one years; and
(ii) “low income employee” means an
employee whose taxable income is
not subject to tax at the rate of more
than twenty per cent under Head B
of the Third Schedule to this Act.
12.
Section 10 of the Income Tax Act is amended —
(a)
in paragraph (c), by inserting the words
“and deemed interest” immediately after the
word “interest”;
(b)
by inserting the following new paragraph
immediately after paragraph (f) —
(g) winnings from betting and
gaming.
13.
Section 16 of the Income Tax Act is amended by
inserting the following new subsection immediately after
subsection (4)-
(5) The Commissioner shall prescribe the form and
manner in which the deemed interest shall be
computed and the period for which it shall
be
applicable.
Amendment to
section 10 of
Cap.470.
Amendment of
section 16 of
Cap.470.
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2012
Amendment of
section 20 of
Cap .470.
14. Section 20 of the Income Tax Act is amended by
inserting the following paragraph immediately after
paragraph (b) —
“(c) a real estate investment trust”
Amendment to
section 34 of
Cap.470.
Amendment of
section 35 of
Cap.470.
15.
Section 34(2) of the Income Tax Act is amended by
inserting the following new paragraph immediately after
paragraph (h) —
(i) winnings from betting and gaming.
16.
Section 35 of the Income Tax Act is amended —
(a) in subsection (1) —
(i)
by deleting the words “aircraft or aircraft
engines” appearing in paragraph (c) and
substituting therefor the words “aircraft,
aircraft engines, locomotives or rolling
stock”;
(ii)
by inserting the words “and deemed
interest” immediately after the word
“interest” wherever it occurs in paragraph
(e).
(iii)
by inserting the following new paragraph
immediately after paragraph (i) —
(j) winnings from betting and gaming;
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(b) in subsection (3), by inserting the following new
paragraph immediately after paragraph (h) —
(i) winnings from betting and gaming.
17.
The Income Tax Act is amended by inserting a new
section immediately after section 41 as follows –
Insertion of
section 41A in of
Cap.470.
Agreements for exchange of
information.
41A. The Minister may, by notice in the
Gazette, from time to time declare that
arrangements specified in the notice, being
arrangements made with the government of
any country with the view of exchanging
information relating to income tax or other
taxes of a similar character imposed by the
laws of that country, shall, notwithstanding
anything to the contrary in this Act or any
other written law, have effect in relation to
income tax, and that notice shall, subject to the
provisions of this section, have effect
accordingly.
18.
The
inserting the
section 52-
Returns, records,
etc. to be in
official
languages.
Income Tax Act is amended in Part VIII, by
following new section immediately before
51A.(1) For the purposes of this Act —
(a) any return, record or other document
required to be kept or produced shall
be in either of the official languages;
Insertion of new
section 5IA in
Cap.470.
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(b) the unit of currency in any such
return, record or other document
shall be the Kenya shilling.
(2) In subsection (1)(a), the expression
“official languages” shall have the meaning
assigned to it in Article 7 of the Constitution.
Amendment of
section 52B of
Cap.470.
19. Section 52B of the Income Tax Act is amended by
deleting the proviso to subsection (1) and replacing it with
the following new proviso —
“Provided that an employee who is employed by or
renders service to one employer shall not be required
to give a return under paragraph (a) —
(i)
if the employee had no income chargeable to
tax for that year of income other than
emoluments, and
(ii) the tax payable in respect of those emoluments
had been recovered by deduction under section
37.”
Amendment of
section 72C of
Cap.470.
Amendment of
section 132 of
Cap.470.
20.
Section 72C of the Income Tax Act is amended in
subsection (2), by deleting the words “five hundred thousand
shillings” appearing in paragraphs (a) and (b) of the proviso
and substituting therefor the words “one million five hundred
thousand shillings”.
21.
Section 132 of the Income Tax Act is amended by
adding the following new subsection immediately after
subsection (7) –
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(8) Without prejudice to any penalty that may be
imposed under subsection (7), the Commissioner
may, forthwith, register and issue a personal
identification number to a person who fails to obtain
such number as required by the Commissioner under
subsection (2).
Amendment of
the Third
Schedule of
Cap.470.
22. The Third Schedule to the Income Tax Act is
amended —
(a) in paragraph 3 —
(i)
by inserting the words “and deemed
interest” immediately after the words “and
interest” appearing in subparagraph (e) (i);
(ii)
by inserting the following new
subparagraph
immediately
after
subparagraph (1) —
(m) in respect of winnings from
betting and gaming, twenty percent.
(b) in paragraph 5, by inserting the following new
subparagraph immediately after subparagraph
(i) —
(j) in respect of winnings from betting
and garnjr:: twenty percent:
Provided that the tax so deducted shall
be final.
1
fi
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PART V — MISCELLANEOUS
23. Part I of the First Schedule to the National
Assembly (Remuneration) Act is amended in the third
column under the title “Parliamentary Responsibilities
Allowance” –
Amendment of
First Schedule.
Amendment of
Second Schedule
of Cap. 5.
(a)
by inserting the figure “2,400,000.00” against
the entries “Deputy Speaker” and “Member of
the Chairman’s Panel respectively; and
(b)
by inserting the “1,200,000.00” against the entry
“Parliamentary Service Commissioner”.
24.
The Second Schedule to the National Assembly
Remuneration Act is amended in item 5 by deleting the
words “A severance allowance at the rate of Ksh.300,000 for
every year in service” appearing in the second column and
substituting therefor the words “A severance allowance at the
rate of thirty-one per centum of the salary specified in the
second column of the First Schedule for every year in
service”.
25. Section 25 of the National Social Security Fund Act
is amended by deleting paragraph (e).
26. Section 16 of the Rating Act is amended —
(a) in subsection (3) by inserting the word “simple”
after the words “The rating authority shall
charge”: and
Amendment of
section 25 of
Cap 258.
Amendment of
Section 16 of
Cap.267
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(b) by inserting the following new sub-section after
sub-section (3) —
“(4) Notwithstanding sub-section (3), the
interest charged shall not exceed the
principal amount of the rate owing.”
27.
Section 2 of the Traffic Act is amended by
inserting the following new definitions in proper alphabetical
sequence-
“registration certificate” means a
certificate issued under section 6(5);
“deregistration certificate” means a
deregistration certificate issued under section
6A(2);
“information technology” means any
equipment or software for use in storing,
retrieving, processing or disseminating
information;
“computerized motor vehicle registration
system” means any software or hardware for
use in storing, retrieving, processing or
disseminating information relating to
registration records of motor vehicles and
trailers, the licensing of drivers, and the
keeping of such records in relation thereto as
are required by this Act.
28.
The Traffic Act is amended by inserting new
sections immediately after section 5 as follows-
Amendment to
section 2 of Cap
403.
Insertion of
sections 5A, 5B,
5C, 5D, and 5E
in Cap 403.
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Use of
information
technology.
SA. (1) Subject to such conditions as the
Registrar may prescribe, registration,
licensing or any formalities and procedures
under this Act may be carried out by use of
information technology.
(2) For the purposes of subsection (1),
the Registrar may, by notice in the Gazette,
specify —
(a) the procedures which may be
carried out by use of information
technology; and
Application to
use of . computerized
motor vehicle registration
system.
(b) the persons authorized to carry out
such formalities using
information technology.
5E41) A person who wishes to be
registered as a user of a computerized motor
vehicle registration system may apply in
writing to the Registrar who may-
(a)
grant the application subject to such
conditions as he may impose; or
(b) reject the application.
(2) A person shall not access, transmit to,
or receive information from, a computerized
motor vehicle registration system unless that
person is a registered user of the system.
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Cancellation of
registration of
registered user.
5C. The Registrar may, at any time, cancel
the registration of a registered user of a
computerized motor vehicle registration
system if satisfied that the user has —
(a)
failed to comply with a condition of
registration imposed by the Registrar
under section 3;
(b)
failed to comply with, or has acted in
contravention of, any condition under
the rules; or
(c)
been convicted of an offence under
this Act relating to improper access to,
or interference with a motor vehicle
computerized’ system.
5D. (1)
Kperson commits an offence if
the person –
(a)
knowingly and without lawful
authority, by any means gains access
to or attempts to gain access to any
computerized
motor
vehicle
registration system; or
(b)
having lawful access to any
computerized
motor
vehicle
registration system, knowingly uses
or discloses information obtained
from such system for a purpose that
is not authorized; or
Unauthorized
access to
computerized Motor vehicle registration
system.
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(c) knowing that he is not authorized to
do so, receives information obtained
from any computerized motor
vehicle registration system and
uses,
discloses,
publishes,
or
otherwise
disseminates
such
information.
(2) A person who commits an offence
under subsection (1) shall be liable on
conviction-
(a) in the case of an individual, to
imprisonment for a term not
exceeding two years, or to a fine-
not exceeding four hundred
thousand shillings, or to both; or
(b) in the case of a body corporate, to
a fine not exceeding one million
shillings.
Interference with computerized motor vehicle
registration
system.
5E
A person commits an offence if the
person knowingly-
(a)
falsifies any record or information
stored in any computerized motor
vehicle registration system;
(b)
damages or impairs any
computerized motor vehicle
registration system; or
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(c) damages or impairs any duplicate
tape or disc or other medium on
which any information obtained
from a computerized motor vehicle
registration system is held or
stored, otherwise than with the
permission of the Registrar,
and shall be liable on conviction to a fine
not exceeding eight hundred thousand
shillings, or to imprisonment for a term not
exceeding three years, or to both.
29.
The Traffic Act is amended by inserting the
following new section immediately after section 6-
Insertion of
section 6A in
Cap 403.
Relocation
of
motor vehicles.
6A. (1) Where the owner of a motor vehicle
intends to move the motor vehicle
permanently to a place outside Kenya, the
owner shall forthwith, return the
identification plates and registration
certificate issued under this Act in respect of
the motor vehicle to the Registrar fof
cancellation.
(2) The Registrar shall, after cancelling
the registration certificate returned under
subsection- (1), issue a deregistration
certificate to the registered owner in such
form as may be prescribed.
30.
Section 9 of the Traffic Act is amended –
Amendment of
section 9 of Cap
403
.
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(a)
by inserting a new subsection immediately after
subsection (1) as follows-
(2) Upon the transfer of ownership of a
motor vehicle or trailer, the registered owner
thereof shall, within seven days from the date
of the transfer, inform the Registrar in the
prescribed form of the name, postal and email
addresses and telephone number of the new
owner and shall deliver the registration
certificate in respect of such vehicle to the
new owner, who shall forward the registration
certificate together with the prescribed fee to
the Registrar, whereupon the vehicle shall be
registered in the name of the new owner:
Provided that, where in any case the
registered owner of a motor vehicle fails to
comply with the provisions of this subsection,
the Registrar may, on being satisfied that the
registered owner has died, left Kenya, cannot
be traced, or has refused to comply with the
provisions of this subsection, cause the
vehicle to be registered in the name of the
new owner on payment of the prescribed fee.
(b)
in subsection (3), by deleting the expression
“subsection (I)” and substituting therefor the
expression ” subsections (1) and (2)”;
(c)
in subsection (5), by inserting the expression
“(2)” immediately after the expression
“subsection (1)”.
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31.
The Stamp Duty Act is amended by adding the
following proviso at the end of section 5 —
“Provided that the Government shall not charge
stamp duty twice where a person moves a mortgage
from one bank to another.”
32. Section 2 of the Capital Markets Act is amended by
inserting the following new definition in proper alphabetical
sequence —
“real estate investment trust” mean an
arrangement in respect of real estate or interest in real
estate of any description, structured in accordance
with the rules prescribed by the Authority to enable a
person taking part in the arrangement, whether by
becoming an owner of the property or any part of it or
otherwise, to participate in or receive profits or
income arising from the acquisition, holding,
management or disposal of the real estate or interest
in the real estate or sums paid out of such profits of
income.
33.
The Insurance Act is amended by inserting the
following new section immediately after section 30 —
No. 4
Amendment of
section 5 of
Cap.480.
Amendment of
section 2 of
Cap.485A
it
Insertion of
section 30A in
Cap.487.
Opening of a
branch.
30A.(1) An insurer registered under this Act
wishing to open a branch or a new place of
business in Kenya, or to change the location of
a branch, or an existing place of business, shall
apply to the Authority for approval to do so.
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(2)In considering an application under
subsection (1), the Authority shall take into
account —
(a)
the history and financial condition
of the insurer;
(b)
the adequacy of the capital base
and the structure of the insurer; •
(c)
the viability and earning prospects
of the branch; and
(d)
such other matter as may have a
bearing on the insurer or the
proposed branch.
(3)
There shall be payable, in respect of
every application under subsection (1), a fee of
twenty thousand shillings.
(4)
For the purposes of this section
“branch” means any permanent premises, other
than its head office, at which an insurer
transacts business in Kenya.
Insertion of
section 67G in
Cap.487.
34.The Insurance Act is amended by inserting a new
section immediately after section 67F as follows —
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Power to
protect the
assets of an
insurer.
Finance
67G.
(1) The Authority may, for the
purpose of protecting the interests of the policy
holders, assume control of the whole or part of
the insurer’s assets, and shall register any
instrument under the relevant law or take any
other appropriate action it may deem
necessary.
No. 4
(2) The Authority shall hold the directors
of the insurer to be jointly and severally liable
for the recovery of the assets under subsection
(1), where it establishes that the assets of the
insurer have been misappropriated.
35.
Section 113 of the Insurance Act is amended in
subsection (1) by deleting the words “Minister, through the
Commissioner” appearing in paragraph (b) and substituting
therefor the word “Authority”.
36.
Section 114 of the Insurance Act is amended by
deleting the word “Minister” wherever it occurs and
substituting therefor the word “Authority”.
37.
Section 115 of the Insurance Act is amended by
deleting the word “Minister” wherever it occurs and
substituting therefor the word “Authority”.
38.
Section 116 of the Insurance Act is amended by
deleting the word “Minister” appearing at the beginning of
the section and substituting therefor the word “Authority”
39.
Section 117 of the Insurance Act is amended by
deleting the word “Minister” wherever it occurs and
substituting therefor the word “Authority”.
Amendment of
section 113 of
Cap.487.
Amendment of
section 114 of
Cap.487.
Amendment of
section 115 of
Cap.487.
ii
Amendment of
section 116 of
Cap.487.
Amendment of
section 117 of
Cap.487.
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Amendment of
section 118 of
Cap.487.
Amendment of
section 8A of
Cap. 488.
40.
Section 118 of the Insurance Act is amended by
deleting the word “Minister” wherever it occurs and
substituting therefor the word “Authority”.
41.
Section 8A of the Banking Act is amended by
inserting the following new subsection immediately after
subsection (4) —
(5). Notwithstanding the provisions of this section,
the Central Bank may, subject to such conditions or
limitations as it may prescribe, permit an institution to
provide such services as it may, in any particular case,
specify, to its customers who are outside the country
through banking institutions located outside Kenya.
Amendment to
section 13 of
Cap. 488.
Amendment to
section 31 of
Cap. 488.
42.
Section 13 of the Banking Act is amended in
subsection (3) by inserting a comma and the words “other
body corporate” immediately after the word “company”
wherever it appears.
43.
Section 31 of the Banking Act is amended-
(a) in subsection (3) —
No. 19 of 2006.
(i)
by deleting the words “and
institutions licensed under this Act”
appearing in paragraph (b) and
substituting therefor the words
“institutions licensed under this Act
and institutions licensed under the
Microfinance Act, 2006”;
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(ii)
by deleting the words “institutions
licensed under this Act” appearing
in paragraph (c) and substituting
therefor the words “institutions
licensed under this Act and
intuitions licensed under the
Microfinance Act, 2006”;
(b)
in subsection (4), by inserting the
words “and institutions licensed under
the
Microfinance
Act,
2006”
immediately before the words “and
disseminating”.
(c)
in subsection (5), by inserting the
following new paragraph immediately
after paragraph (b) —
(c) a deposit-taking microfinance
institution licensed under the
Microfinance Act, 2006.
44.
Section 33 of the Banking Act is amended in
subsection (4) by deleting the word “Part” and substituting
therefor the word “Act”.
No. 4
Amendment of
section 33 of
Cap. 488.
168
Amendment of
section 11 of
45. Section 11 of the Central Bank of Kenya Act is
Cap.491.
amended
—
(a) in subsection (1), by deleting paragraphs (a) and
(b) and substituting therefor the following new
paragraphs —
(i)
a Chairperson;
(ii)
a Governor;
(b) by deleting subsection (2) and substituting
therefor the following new subsection —
(2) The directors appointed under
paragraph (d) of subsection (1) shall be
appointed by the President with the
approval of Parliament and shall hold
office for a period of four years but shall
be eligible for re-appointment for one
further term of four years.
(c)
in subsection (5), by deleting the words
“Governor, Deputy Governor” and substituting
therefor the words “Chairperson, Governor”;
(d)
in subsection (6) by deleting the words
“Governor, the Deputy Governor” and
substituting therefor the words “Chairperson, the
Governor”.
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2012
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46. Section 12 of the Central Bank of Kenya Act is
Arnendment of
amended —
section 12 of
Cap.49I
(a)
in subsection (1), by deleting the words
“Governor, as Chairman of the Bank” and
substituting therefor the word “Chairperson”;
(b) by inserting the following new subsections after
subsection (1) –
(1A)
The Chairperson shall preside at all
meetings of the Board.
(1B)
In the absence of the Chairperson at a
meeting, the members present shall elect one of
the members appointed under paragraph (d) of
section 11(1) to preside at that meeting of the
Board.
(c)
in subsection (2), by deleting the words
“Governor or the Deputy Governor” and
substituting therefor the words “Chairperson,
the Governor”.
(d)
in subsection (3), by deleting the words
“Chairman or the Deputy Chairman” and
substituting therefor the words “Chairperson or
the person”.
47. Section 13 of the Central Bank of Kenya Act is
amended by inserting the following new subsections
immediately before subsection (1) —
Amendment of
section 13 of
Cap.491.
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(1)
There shall be a Governor who shall be
appointed by the President through a
transparent and competitive process and with
the approval of Parliament.
(2)
The Governor shall hold office for a term of
four years, but shall be eligible for re-
appointment for one further term of four
years.
Repeal and
replacement of
section I 3B
or
Cap.491.
48. The Central Bank of Kenya Act is by repealing
section 13B and replacing it with the following new section —
Deputy
Governors.
13B.(1) There shall be two Deputy Governors
who shall be appointed by the President through
a transparent and competitive process and with
the approval of Parliament.
(2)
The Deputy Governors shall hold office
for a term of four years, but shall be eligible for
re-appointment for one further term of four
years.
(3)
The Deputy Governors shall perform
such functions as the Governor may from time to
time assign to them.
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(4) The Board shall appoint one of the
Deputy Governors to act in the office of
Governor whenever —
(a)
the position of Governor falls vacant in
the period before a substantive
appointment is made; or
(b)
the Governor is temporarily absent from
office.
(5) A Deputy Governor appointed under
subsection (4) shall, during the period of
appointment, exercise all the powers and perform
all the functions conferred on the Governor
under this Act under any other law.
49.
Section 33B of the Central Bank of Kenya Act is
amended by deleting subsection (6) and substituting therefor
the following new subsection –
(6) A licence issued under this section shall, unless
earlier revoked, expire on the 31st December next
following the date of issue:
Provided that where an application for
renewal is made under section 33C, the licence shall
be deemed to continue in force until the application
for renewal is determined.
50.
The Central Bank of Kenya Act is amended by
inserting a new section immediately after section 36 as
follows —
Amendment of
section 33B of
Cap. 491.
Insertion of
section 36A in
Cap.491.
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Publication and
sharing of
information.
Finance
2012
36A. (1)
The Central Bank shall publish in
the Gazette, the Central Bank website and
two daily newspapers of national circulation
the following information —
(a)
the weighted average lending and
deposit rates for all banks and
financial institutions;
(b)
the interest rate spread and its
composition;
(c)
a simplified version of the balance
sheets and income statements.
(2) Notwithstanding the provisions of
this section, a bank shall disclose any positive
or negative information of its customers to
the licensed credit reference bureaus, where
such information is reasonably required for
the discharge of the functions of the banks
and the licensed credit reference bureaus.
Insertion of
section 36B of
Cap.49I.
51.
The Central Bank of Kenya Act is amended by
inserting a new section immediately after section 36A as
follows —
Reports to
Parliament.
36B.
The Central Bank shall, on a quarterly
basis, make and present to Parliament a
report on the key economic and banking
sector aggregate.
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52.
Section 27 of the Kenya Information and
Communications Act, 1998 is amended in subsection (2) by
inserting the following paragraph immediately after
paragraph (g) —
Amendment of
section 27 of Act
No.2 of 1998
(h)
the
registration
telecommunication services.
of
subscribers
to
53. Section 2 of the Microfinance Act, 2006 is amended
Amendment of
by inserting the following definition in proper alphabetical
section 2 of Act
No. 19 of 2006
sequence —
“control”, in relation to a company or other body
corporate, includes-
(a)
to influence, whether directly or indirectly, the
composition of at least half of the board of
directors of the company or other body
corporate;
(b)
to hold, directly or indirectly, whether
personally or through a holding company or
companies or subsidiaries thereof, or in any
other way, an aggregate of fifty per centum or
more of the voting power of the company or
body corporate, whether alone or with
associates or with other associates of the
company or other body corporate; or
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No. 4
Finance
2012
(c) the ability, in the opinion of the Central Bank,
to exercise a dominant influence over the
management or policies of the company or
other body corporate on the basis of an
agreement or by any other means, regardless
of the amount of formal ownership or voting
rights.
Amendment of
section 17 of Act
No. 19 of 2006.
Amendment of
section 18 of Act
No 19 of 2006.
Amendment of
section 19 of Act
No. 19 of 2006.
54.
Section 17 of the Microfinance Act, 2006 is amended
in subsection (1) by inserting the words “or his associates”
immediately after the words “single borrower”.
55.
Section 18 of the Microfinance Act, 2006 is amended
by deleting subsection (1) and substituting therefor the
following new subsection —
(1) No institution shall grant a loan or credit
facility to its associate, or to an officer or member of
staff of the institution, or their associates, in excess
of such limits as the Central Bank may, by
regulations, prescribe.
56.
Section 19 of the Microfinance Act, 2006 is
amended-
(a) by deleting subsection (1) and substituting
therefor the following new subsection –
(1) Subject to subsections (2) and (3), no
person shall hold, directly or indirectly, or
otherwise have a beneficial interest in, more
than twenty-five percent of the shares of an
institution.
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No. 4
(b) by renumbering subsection (5) as subsection (6)
and inserting the following new subsection-
(5) Where any share is held by a company
or other corporate body, or by a nominee on
behalf of another person, the company or
other corporate body, or the nominee, as the
case may be, shall disclose to the Central
Bank the full particulars of the individual
person who is the ultimate beneficial owner
of the shares.
57. Section 21 of the Microfinance Act, 2006 is amended
by inserting the following new paragraphs immediately after
paragraph (d) –
(e) was a director or senior officer of an institution
that has been liquidated or is under liquidation
or statutory management under any written law
dealing with banking, insurance, investment or
other financial services:
Provided that such a director or senior
officer shall not be disqualified unless the
Central Bank forms a reasonaole opinion that
such a director or senior officer may have,
directly or indirectly through commission or
omission, contributed to the collapse of the
financial entity;
Amendment of
section 21 of Act
No. 19 of 2006.
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No.
4
Finance
2012
(0 has contravened the provisions of any law
designed for the protection of members of the
public against financial loss due to the
dishonesty or incompetence of, or malpractices
by, persons engaged in the provision of
banking, insurance, investment or other
financial services;
(g)
has taken part in any business practices that, in
the opinion of the Central Bank, ‘ were
fraudulent, prejudicial or otherwise improper or
which otherwise discredited his methods of
conducting business; or
(h)
has taken part in or been associated with such
other business practices as would, or has
otherwise conducted himself in such manner as
to cast doubt on his competence and soundness
of judgment.
Insertion of a
new section 22A
in Act No. 19 of
2006.
58. The Microfinance Act, 2006 is amended by inserting
the following section immediately after section 22-
Assessment of
officers.
22A. (I) Notwithstanding any other
provision of this Act, the Central Bank may,
from time to time, where it deems it necessary
to do so, carry out an assessment of the
professional and moral suitability of a person
managing or controlling an institution.
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4
(2) An assessment under this section
shall be in accordance with such criteria as
may be prescribed.
(3)
Where, upon an assessment under this
section, the Central Bank is satisfied as to the
professional and moral suitability of the
person managing or controlling an institution,
it shall so certify in writing to the institution.
(4)
A person who, upon an assessment
under this section, is not certified by the
Central Bank as fit and proper to manage or
control an institution, shall be deemed to be
disqualified from holding office and shall
cease to hold office.
59. Section 34 of the Microfinance Act, 2006 is
amended-
(a) in subsection (3A), by inserting the words
“and institutions licensed under the
Cap 488
Banking Act” immediately after the words
“licensed under this Act”;
Amendment of
section 34 of Act
No. 19 of 2006.
fi
No. 4
Amendment of
section 45 of Act
No. 19 of 2006.
178
Finance
2012
(b) in subsection (4) —
(i)
by deleting the word “and”
appearing immediately after the
words “Central Bank”; and
(ii)
by inserting the word “and
institutions licensed under the
Cap 488
Banking Act” immediately after
the words “licensed under this
Act”;
(c) in subsection (5) by deleting all the words
appearing immediately after the words
“clients of institutions” and substituting
therefor the following-
“licensed under this Act and
Cap 488
institutions licensed under the
Banking Act, and disseminating the
information among such institutions
for use in the ordinary course of
business, subject to such conditions or
limitations as may be prescribed”.
60. Section 45 of the Microfinance Act, 2006 is amended
by-
(a) inserting the following new subsection
immediately after subsection (1) –
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(2) Where a company registered under
the Companies Act as a deposit-taking
micro finance institution fails to acquire a
licence to operate under this Act within a
period of one year from the date of such
registration, the company shall forthwith
cease the use of the words “deposit taking
microfinance” or the acronym “DTM” in its
name.
(b) by renumbering the existing subsection (2) as
subsection (3).
61.The Microfinance Act, 2006 is amended by inserting
the following section immediately after section 51-
Insertion of
section 51 in the
Act No. 19 of
2006.
False
advertising.
52. (1) Any entity, institution or other person
who issues any advertisement, brochure,
circular or other document inviting any person
to make a deposit which –
(a)
falsely represents that the entity,
institution or person is authorized to
accept deposits or is otherwise
licensed under the provisions of this
Act; or
(b)
is issued contrary to any direction
given by the Central Bank under the
provisions of subsection (2),
commits an offence.
ry
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2012
(2) The Central Bank may, at any time, direct an
institution to withdraw, amend or refrain from
issuing any document to which subsection
(1)
applies.
(S.2)
s
lit
FIRST SCHEDULE
Amendment of the Fifth Schedule to the Customs and Excise Act, Cap.472
FIFTH SCHEDULE
PART I
1.
Delete the following tariff numbers, descriptions and rates of excise duty thereof
—
Tariff No.
Goods Description. Rate of Duty.
2203.00.10
Stout and porter Sh.65 per litre
2203.00.90 Other beer made from malt Sh.65 per litre
2206.00.10
Cider
Sh.55 per litre
2206.00.20 Opaque beer
Sh.55 per litre
2206.00.90 Other fermented beverages
Sh.55 per litre
2204.10.00 Sparking wine of fresh grapes including fortified wines Sh.70 per litre or 35%
2204.21.00
Other wine grape must with fermentation prevented or
arrested by the addition of alcohol in containers holding 2
litres or less
Sh.70 per litre or 35%
C
2710.19.22
Goods Description.
Other wine grape must with fermentation prevented or
arrested by the addition of alcohol in containers holding
more than 2 litres
Other grape must
Vermouth and other wine of fresh grapes flavoured with
plants or aromatic substances in containers of 2 litres or less
Vermouth and other wine of fresh grapes flavoured with
plants or aromatic substances in containers of more than 2
litres.
Illunhinating Kerosene (IK)
Per 1000 litre @ 20°C
Sh.5,044.00
Tariff No.
2204.29.00
2204.30.00
2205.10.00
2205.90.00
Rate of Duty.
Sh.70 per litre or 35%
Sh.70 per litre or 35%
Sh.70 per litre or 35%
Sh.70 per litre or 35%
2.
Insert the following tariff numbers, descriptions and rates of excise duty thereof –
Tariff No.
Goods Description.
Rate of Duty.
2203.00.10
2203.00.90
2206.00.10
2206.00.20
2206.00.90
Stout and porter
Other beer made from malt
Cider
Opaque beer
Other fermented beverages
Sh.70 per litre or 40% of RSP
Sh.70 per litre or 40% of RSP
Sh.70 per litre or 40% of RSP
Sh.70 per litre or 40% of RSP
Sh.70 per litre or 40% of RSP
O
o-/
00
O
Tariff No.
2204.10.00
2204.21.00
2204.29.00
Goods Description.
Sparking wine of fresh grapes
including fortified wines, grape
must
Other wine in containers
holding 2 litres or less
Other wine in containers
holding more than 2 litres
Other grape must
Vermouth and other wine of
fresh grapes flavoured with
plants or aromatic substances
in containers of 2 litres or less
Vermouth and other wines of
such fresh grapes flavoured
with plants or aromatic
substances, in containers of
more than 2 litres
Rate of Duty.
Sh.80 per litre or 40% of RSP
Sh.80 per litre or 40% of RSP
Sh.80 per litre or 40% of RSP
Sh.80 per litre or 40% of RSP
Sh.80 per litre or 40% of RSP
Sh.80 per litre or 40% of RSP
2204.30.00
2205.10.00
2205.90.00
A
00
(RSP means Retail Selling Price)
PART
II
Delete the existing Part II and substitute therefor the following new Part II
00
Excise duty in respect of cigarettes shall be as shown hereunder —
r->
Description
Rate of Excise Duty
Cigarettes
Sh.1200 per mille or 35% of retail selling price.
PART III
Insert the following new item (6) immediately after item (5) —
6.
Excise duty on pre-mixed alcoholic beverages of tariff No 2208.90.90 (e.g. Ready to Drink) of
strength not exceeding 10 percent by volume of alcohol sh ill be Shs.70 per litre or 40% of the
O
retail selling price.
t•J
SECOND SCHEDULE
(s.8)
O
is
Amendment of the Eighth Schedule to the Value Added Tax Act Cap 476
EIGHTH SCHEDULE
Insert the following new clause 29 in Part A of the highth Schedule —
29. “All goods, including materials, supplies, equipment and machinery procured or sourced by the Rural
Electrification Authority for the implementation of the Rural Electrification Programme”.