Local Authorities Service Charge Act No 6of 1988 - as Plain Text by MWakili

THE LOCAL AUTHORITIES SERVICES CHARGE ACT, 1988 No.

6 of 1988 Date of Assent: 11th August, 1988 Date of Commencement: By Notice ARRANGEMENT OF SECTIONS Section Short title, commencement and application.

Interpretation.

Imposition of services charge.

Minister to permit collection of services charge.

Method of payment of services charge on income derived from employment.

Method of payment of services charge on income not derived from employment.

Services charge cards and stamps.

Penalty for late payment.

Collector may demand additional services charge.

0Recovery of services charge by suit.

1Recovery of services charge by distraint.

2Remission and refund of services charge.

3Exemption from services charge.

4Collector may apply for summons.

5Power to demand production of services charge cards and certificates of clearance.

6Breach of accounting.

7Obstruction.

8Mode of proof.

9Regulations.

An Act of Parliament to provide for the imposition and collection of a services charge by local authorities and for connected purposes ENACTED by the Parliament of Kenya, as follows: PART IPRELIMINARY Short title, commencement and application.

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(1) This Act may be cited as the Local Authorities Services Charge Act, 1988 and shall come into operation on a date to be appointed by the Minister by notice in the Gazette.

(2) This Act shall apply to and in respect of public officers as it applies to and in respect of private persons.

Interpretation.

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In this Act, unless the context otherwise requires "authorized officer" means any person authorized in writing by a local authority for carrying out all or any of the purposes of this Act; "collector" means any person appointed in writing by a local authority to be a collector for 'the purposes of this Act; "local authority" has the meaning assigned to that term by section 2 of the Local Government Act; cap.

265.

"legal person" means a co-operative society, company or association or body of persons, corporate or unincorporate; "police officer" has the meaning assigned to that term by the Police Act cap.

84.

"services charge" means the services charge imposed under section 3 and payable under this Act; "services charge card" means a services charge card referred to in section 7; "services charge stamp" means a services charge stamp referred to in section 7.

PART IIIMPOSITION OF SERVICES CHARGE Imposition of services charge.

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(1) Subject to this Act, every person resident in Kenya shall pay a services charge according to the rates prescribed by the Minister by notice in the Gazette after consultation with the Minister for the time being responsible for finance.

(2) The services charge payable under this section shall be due (a)in the case of income derived from employment, to the local authority from whose area of jurisdiction the person's employer pays his salary or wages; or (b) in the case of income not derived from employment or income accruing to legal persons, to the local authority within whose jurisdiction the income accrues : Provided that where the income accrues in areas under the jurisdiction of more than one local authority, the income shall be deemed to accrue in the area in which the income is received.

(3) A local authority shall cause to be maintained a list of all persons in its area of jurisdiction who are liable to pay the services charge imposed by this Act.

Minister to permit collection of services charge.

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(1) A local authority may collect the services charge imposed by this Act if permitted to do so by the Minister by notice in the Gazette.

(2) A local authority which wishes to collect the services charge under this Act shall apply in writing to the Minister for permission to collect the services charge and shall, in the application, specify the services charge on which it proposes to utilize the moneys collected.

(3) The Minister's notice under subsection (1) shall (a) permit a local authority to collect the services charge; and (b) specify the date when the first payment of the services charge so authorized shall be due and payable.

PART IIIMETHOD OF PAYMENT OF SERVICES CHARGE Method of payment of services charge on income derived from employment.

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(1) The amount of services charge due from an individual in respect of income derived from employment shall be deducted monthly by an employer from the salary or wages due in respect of each month's employment and the employer shall utilize the moneys so deducted to purchase services charge stamps, and shall, within seven days from the end of the month in respect of which the deduction was made, affix on a services charge card made out in the name of the employee services charge stamps of the value of the services charge due in respect of that month, cancelling the services charge stamps by writing thereon in ink or by indelible stamp the date on which the salary or wages, after the deduction, were paid.

(2) The services charge stamps to be affixed to a services charge card shall be purchased from the local authority to which the services charge is due or from an authorized officer appointed by that local authority.

(3) The amount of services charge due from a person in respect of income derived from employment of a casual or temporary nature, for periods of less than one month, where the person is not paid on a monthly basis, shall be deducted by the employer, to such extent as may be necessary, from the salary or wages due in respect of such employment, and the employer shall utilize the moneys so deducted to purchase services charge stamps, and shall, within seven days from the date of the deduction, affix to a services charge card made out in the name of the employee services charge stamps of the value of the services charge deducted, cancelling the services charge stamps by writing thereon in ink or by indelible stamp the date on which the salary or wages, after deduction, were paid, so that the services charge card is fully stamped up for the month or months in which the income was earned.

(4) Each services charge card shall be held by the employer and shall be delivered to the local authority which issued it within one month after the end of the year or, if the employee leaves the employment during the year, to the employee at the time when he leaves.

(5) The delivery of an individual's services charge card in accordance with this section shall satisfy, to the extent of the value of the services charge stamps affixed, the individual's liability to pay the services charge and an authorized officer shall issue to the employee a certificate of clearance in the prescribed form in respect of that services charge : Provided that- (i) if the employee has left his employment before the 31st December in any year, he shall, not later than the 31st January in the following year, tender to an authorized officer his services charge card stamped in accordance with this section, and the authorized officer shall issue to him the prescribed certificate of clearance; (ii) an authorized officer may at the time of delivery or tender of a services charge card, and notwithstanding the issue of a certificate of clearance in respect thereof under this section, or at any time within four years thereafter, demand from the individual any additional services charge which in the opinion of the authorized officer was properly due, and may similarly demand any penalty for which the individual may be liable under section 8, and the issue of a certificate of clearance may be delayed until such additional services charge or penalty has been paid.

(6) Notwithstanding subsections (1) to (5), an authorized officer may, in writing direct an employer (a) to account for the deduction of services charge stamps, and may at any time, after reasonable notice, vary or cancel such direction; (b) in respect of a particular employee, not to deduct services charge where such direction is necessary to avoid over-payment of services charge.

(7) Any employer to whom this section applies who knowingly or by neglect (a) fails to comply with any of the provisions of subsections (1), (3) and (4) or, as the case may be, of a direction given to him pursuant to subsection (6); or (b) deducts from any salary or wages an amount that is less than the amount properly deductible under subsections (1) and (3), shall be guilty of an offence and liable to a fine not exceeding fifty thousand shillings or ten times the amount of the services charge, if any, in respect of which he is in default, whichever is the greater.

(8) Where any shortfall of 'the services charge is shown to have occurred in consequence of an offence under subsection (7) for which a fine is levied and paid, the amount of the shortfall shall be paid to the local authority out of the proceeds of the fine.

Method of payment of services charge not derived from employment.

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(1) This section applies to natural persons in the same manner as it applies to legal persons.

(2) A person from whom services charge is due to a local authority in respect of income not derived from employment shall pay services charge by obtaining a services charge card from the local authority and affixing to it each month services charge stamps, of the value of the rate of services charge payable, purchased from the local authority, cancelling the services charge stamps by writing thereon in ink orby indelible stamp the date on which the services charge stamps were affixed, so that the services charge card is fully stamped up for the month in question.

(3) A person from whom services charge is due under this section who fails to purchase services charge stamps of the requisite value and affix them to a services charge card by the seventh day of the month following the month to which the services charge relates, shall be guilty of an offence and liable to a fine not exceeding (a) ten thousand shillings in the case of a natural person or to imprisonment for a term not exceeding six months or to both; or (b) twenty thousand shillings in the case of a legal person.

(4) Any collector who reasonably suspects a person to have committed an offence under this section may, without warrant, arrest that person and without undue delay take him before a court.

(5) The services charge for which a person is liable under this section shall be satisfied by delivery of the services charge card to the local authority at the end of 'the year, and an authorized officer shall issue the person with a certificate of clearance in the prescribed form in respect of the services charge: Provided that an authorized officer may, at the time of delivery or tender of the services charge card, and notwithstanding the issue of a certificate of clearance under this section, or at any time within four years thereafter, demand from the person any additional services charge which in the opinion of the authorized officer was properly due, and may similarly demand any penalty for which the person may be liable under section 8, and the issue of a certificate of clearance may be delayed until the additional services charge or penalty 'has been paid.

Services charge cards and stamps.

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(1) An authorized officer shall keep a sufficient stock of services charge cards for issue free of charge, and services charge stamps for sale, to employers for the purposes of section 5, or to other persons for the purposes of section 6.

(2) A services charge card shall in every case be obtained from the local authority where the services charge is due or from an authorized officer.

Penalty for late payment.

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Notwithstanding the prosecution of any person for an offence under section 6, any person who fails to pay the whole services charge due from him in respect of income not derived from employment shall be liable to pay in addition a penalty of such amount as may be prescribed by the Minister, by notice in the Gazette, either generally or in respect of the area of jurisdiction of any local authority, but not exceeding twice the amount of the services charge in respect of which he is in default.

Collector may demand additional services charges.

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(1) A collector may at the time of payment, acceptance or satisfaction of any services charge, or at any time within four years thereafter, demand from the person concerned any additional services charge which in the opinion of the collector was properly due from the person, and the collector may similarly demand any penalty for which the person is liable under section 8.

(2) In making a demand under this section, a collector may require the person concerned to attend before the collector or to send the amount of services charge to the collector on or before a specified time and day.

(3) Any person who without reasonable excuse fails to obey the requirements of a collector made under subsection (2) shall be guilty of an offence and liable to a fine not exceeding six thousand shillings or to imprisonment for a term not exceeding two months or to both.

(4) Offences under this section shall be cognizable to the police.

PART IVRECOVERY OF SERVICES CHARGE Recovery of services charges by suit 0.

(1) A services charge due shall be deemed to be a civil debt due to the local authority to which it is due under section 3, and may, without prejudice to any other mode of recovery or the prosecution of any person for an offence under this Act, be sued for in a court by and in the name of the local authority and shall be a civil debt recoverable summarily.

(2) Any person who fails to pay any services charge due from him within the time allowed by this Act may be called upon by a court at the instance of the local authority to show cause why the amount of services charge should not be recovered by distress or by attachment of salary or wages and if he fails to show cause the court may order the services charge to be recovered by execution against his property or by attachment of his salary or wages.

(3) Nothing in this section shall preclude a court instead of ordering execution or attachment under subsection (2), from ordering that the amount due be paid within a specified period or on such terms as to payments by instalments as the court may think fit.

(4) Where proceedings are taken under this section the court may order the person in default to pay a sum not exceeding one thousand shillings by way of costs as the court may think fit.

Recovery of services charges by distraint.

1.

(1) Where an individual fails to pay any services charge due from him within the time allowed by this Act, then, without prejudice to any other mode of recovery or the prosecution of any person for an offence under this Act, the amount of services charge may be recovered by distraint upon the goods and chattels of the person in accordance with this section : Provided that, if the full amount of the services charge due is not recovered by distraint, the local authority concerned may sue for the deficiency in a court.

(2) Before the powers of distraint conferred by this section may be exercised, a collector shall serve a demand in writing on the person concerned or a collective demand under subsection (3), specifying the amount of the services charge due and the person concerned, and where the person concerned has not, within twenty-one days of the service of the demand or such longer period as may be specified in the demand, complied with the demand, then an authorized officer may by warrant under his hand authorize an officer of the local authority or some other proper person, as the case may be, to distrain upon the goods of the person for the amount in dispute.

(3) For the purposes of levying distress under this section, the person authorized by warrant under subsection (1), together with such servants or agents as the person may consider necessary, may break open and enter in the daytime any premises; and the person so authorized may require any police officer to be present while the distress is being levied and any police officer so required shall comply with the requirement.

(4) A distress levied under this section shall be kept for ten days, either at the premises at which the distress was levied or at such other place as the person levying the distress may consider appropriate, at the cost of the person or persons from whom the services charge is due.

(5) if the person from whom the services charge is due does not pay the services charge together with the costs of the distress within the period of ten days specified in subsection (4), the goods and chattels distrained upon shall be sold by public auction.

PART VREMISSION AND EXEMPTION Remission and refund of services charge.

2.

(1) Where a person owes services charge to a local authority, an authorized officer may, subject to the directions of the local authority with, the approval of the Minister, remit or refund the services charge or part thereof.

(2) Every remission or refund under this section shall be certified in writing by the authorized officer and shall have effect for such period as is specified in the certificate: Provided that an authorized officer may on the direction of a local authority vary or cancel the certificate.

Exemption from services charge.

3.

(1) There shall be exempted from payment of services charge (a) every natural person who has not attained the age of eighteen years- and (b) every natural person visiting Kenya for a period not exceeding six months in duration in any period of two years, if he is not otherwise resident in Kenya and is not an owner or lessee of land in Kenya and is not engaged in any employment or business in Kenya.

(2) The Minister may, by notice in the Gazette, exempt from the services charge, to such extent as is specified in the notice, any person or class of persons or any income of a person or class of persons so specified, and may vary or revoke an exemption.

PART VIMISCELLANEOUS PROVISIONS Collector may apply for summons.

Cap.

75 4.

(1) Notwithstanding anything in this Act or in any other written law, a collector may apply to a court to issue summons requiring any person whom he has reason to suspect of having committed an offence under this Act to attend before the court to answer thereto, at such place and at such date and time (not being less than ten days from the date of such service) as are specified in the summons.

(2) Summons under this section shall be regarded for all purposes as summons issued under the Criminal Procedure Code (3) A copy of the summons shall be submitted to the court by which the charge is to be heard before the time fixed for the hearing, and the court shall hear and determine the charge accordingly.

(4) Any person who, having been served with summons under this section, fails without reasonable excuse either to attend before the court at the date and time specified in the summons or to plead guilty in writing shall be guilty of an offence and liable to a fine not exceeding two thousand shillings or to imprisonment for a term not exceeding one month or to both.

(5) Offences under subsection (4) shall be cognizable to the police.

Power to demand production of services charge cards and certificates of clearance.

5.

(1) An authorized person may at any time require a person to produce a services charge card or certificate of clearance issued to him for the services charge due from him, and, if he refuses or neglects to produce the services charge due from him, or, if he refuses or neglects to produce the services charge card or certificate of clearance, may require him to furnish such other information as the authorized person may require for the purpose of ascertaining whether all the services charge due has been paid.

(2) Any person who without reasonable excuse fails or unreasonably delays to produce a services charge card or a certificate of clearance or to furnish information, or who knowingly gives false information, to an authorized person in response to a requirement under this section shall be guilty of an offence and liable to a fine not exceeding six thousand shillings or to imprisonment for a term not exceeding six months or to both.

(3) In this section "authorized person" means any collector, any person authorized in writing by a collector for the purposes of this section or a police officer.

Breach of accounting.

6.

Any authorized officer to whom a duly stamped services charge card is tendered under section 5 or section 6 and who willfully and without reasonable excuse (a) omits or refuses to issue a certificate of clearance or a services charge card to the tenderer; or (b) issues a certificate of clearance or a services charge card for a value other than that tendered; or (c) issues a certificate or services charge card otherwise than in the prescribed form, shall be guilty of an offence and liable to a fine not exceeding six thousand shillings or to imprisonment for a term not exceeding six months or to both.

Obstruction.

7.

Any person who obstructs or hinders any person in the discharge of his duties under this Act shall be guilty of an offence and liable to a fine not exceeding six thousand shillings or to imprisonment for a term not exceeding six months or to both.

Mode of proof.

8.

In any proceedings under this Act (a) a purported copy of any appointment of a collector purporting to be made under the hand of an authority empowered to appoint collectors, and a purported copy of any instrument appointing an assessment committee, in either case certified by an authorized officer to be a true copy, shall be prima facie evidence of such appointment or establishment and appointment, as the case may be; and (b) the certificate of a collector of the amount of services charge due from an individual shall be prima facie evidence of the amount so due.

Regulations.

9.

(1) The Minister may make regulations for the better carrying out of the purposes and provisions of this Act and particularly, but without prejudice to the generality of the foregoing, for prescribing (a) anything required to be prescribed under this Act; (b) the duties of a local authority and of persons engaged in the administration of this Act; (c) the duties of employers and employees under section 5 and other persons under section 6; (d) the forms of demands, returns, receipts, services charge cards and stamps and other documents; (e) the fees to be charged for duplicate copies of any document which may be issued under this Act (2) Notwithstanding anything to the contrary in any written law, regulations made under this section may provide for the following penalties for non-payment of services charge and for connected matters (a) the withholding of licences, permits and authorizations; (b) the denial of registration on housing lists, and of the allocation of houses or other accommodation; (c) the denial of any other service provided by any local authority.

(3) Any regulations made under this section may be made to apply to local authorities generally or to any specified local authority or to any specified area or areas of a local authority.

Local Authorities Service Charge, No 6 of 1998 www.kenyalaw.org.