The Finance Act No 4of 2023 - as Plain Text by MWakili

naitonal council for LAW REPORTING SPECIAL ISSUE Kenya Gazette Supplement No.

97 (Acts No.

4) REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT ACTS, 2023 NAIROBI, 26th June, 2023 CONTENT A ct Page The Finance Act, 2023 79 PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI P.

O.

Box 10443- 00100, NAIROBI, KENYA TEL: 2719231 FAX: 2712694 79 THE FINANCE ACT, 2023 No.

4 of 2023 Date of Assent: 26th June, 2023 Date of Commencement: See Section 1 AN ACT of Parliament to amend the laws relating to various taxes and duties; and for matters incidental thereto ENACTED by the Parliament of Kenya, as follows PART IPRELIMINARY 1.

This Act may be cited as the Finance Act, 2023, Short title and and shall come into operation or be deemed to have come commencement.

into operation as follows (a)!on the 1st of September, 2023, sections 10, 26(b)(xiii), 52, 56, 63, 64 and 74; (b)!on the 1st January, 2024, sections 5(c), 6, 12, 14, 20, 25, 26(a), 26(b)(iii), 26(b)(v), 26(b)(vii), 26(b)(ix), 26(b)(x), 26(b)(xii), and 27; and (c)!all other sections, on the 1st July, 2023.

PART IIINCOME TAX 2.

Section 2 of the Income Tax Act is amended Amendment of section 2 of Cap.

470.

(a)!by deleting the definition of winnings and substituting therefor the following new definition winnings means the payout from a betting, gaming, lottery, prize competition, gambling or similar transaction under the Betting, Lotteries and Gaming Act, excluding the Cap.

131.

amount staked or wagered in that transaction; (b)!by inserting the following new definitions in proper alphabetical sequence digital content monetisation means offering for payment entertainment, social, literal, artistic, educational or any other material electronically through any medium or channel, in any of the following forms (a)!advertisement on websites, social media platforms or similar networks by partnering with brands including endorsements from sellers of such brands; ! 80 Finance 2023 No.

4 (b)!sponsorship where a brand owner pays a content creator for content creation and promotion; (c)!affiliate marketing where the content creator earns a commission whenever the audience of the content creator clicks on the product displayed; (d)!subscription services where the audience pays a periodic fee to access the content and support the content creator; (e)!offering for use a logo, brand or catchphrase associated with the content creator merchandise sales eBooks, course or software; (f)! membership programmes for exclusive content including early access; (g)!licensing the content including photographs, music or other businesses or individuals for use in the users own projects; or (h)!a content creator earns a commission or fees from crowd funding.

immovable property includes (a)!land, whether covered by water or not, any estate, rights, interest or easement in or over any land and things attached to the earth or permanently fastened to anything attached to the earth, and includes a debt secured by mortgage or charge on immovable property; and (b)!a mining right, an interest in a petroleum agreement, mining information or petroleum information; related person means, in the case of two persons where a person who participates directly or indirectly in the management, control or capital of the business of another person.

3.

Section 3(3) of the Income Tax Act is amended in Amendment of paragraph (c) by deleting subparagraph (i).

section 3 of Cap.

470.

4.

Section 4A of the Income Tax Act is amended Amendment of section 4A of Cap.

470.

(a)!by deleting paragraph (ii) of the proviso to subsection (1) and substituting therefor the following new paragraph 81 2023 Finance No.

4 ! (ii) the foreign exchange loss shall be deferred (and not taken into account) and claimed over a period of not more than five years from the date the loss was realized by a person whose gross interest paid or payable to a non- resident person exceeds thirty per cent of the persons earnings before interest, taxes, depreciation, and amortization in any year of income; (b)!by deleting subsection (1A).

5.

Section 5 of the Income Tax Act is amended Amendment of section 5 of Cap.

470.

(a)!in subsection (2), (i)! by inserting the following new subparagraph in paragraph (a) immediately after sub paragraph (iii) (iv) notwithstanding the provisions of subparagraph (ii), where such an amount is received by an employee as payment of travelling allowance to perform official duties, the standard mileage rate approved by the Automobile Association of Kenya shall be deemed to be reimbursement of the amount so expended and shall be excluded in the calculation of the employees gains and profits: (ii)!by inserting the following new paragraph immediately after paragraph (f) (fa) club entrance and subscription fees allowed against the employers income.

(b)!in subsection (6)(c) (i)!by deleting the words shares were granted by the employer appearing in subparagraph (i) and substituting therefor the words option was exercised by the employee; (ii)!by deleting the words which shall be agreed upon with the Commissioner before the grant of the options appearing in subparagraph (ii) and substituting therefor the words when the option is exercised; ! 82 Finance 2023 No.

4 (c)!by inserting the following new subsections immediately after subsection (6) (7) Where an employee is offered company shares in lieu of cash emoluments by an eligible start-up, the taxation of the benefit from the shares allocated to that person by virtue of employment shall be deferred and taxed within thirty days of the earlier of (a)! the expiry of five years from the end of the year of the award of the shares; (b)! the disposal of the shares by the employee; or (c)! the date the employee ceases to be an employee of the eligible start-up: Provided that (i)! this subsection shall not apply to any cash emoluments or other benefits in kind offered to an employee by virtue of the employment; (ii)! the benefit shall be deemed to accrue at the earlier of the occurrence of the events contemplated in paragraphs (a), (b) or (c); (iii)! the value of the taxable benefit shall be the fair market value of the shares at the earlier of the occurrence of the events contemplated in paragraphs (a), (b) or (c); or (iv)! where the fair market value is not available, the Commissioner shall determine the value of the shares based on the last issued financial statements.

(8) For the purposes of subsection (7), eligible start- up company means a business incorporated in Kenya that (a)!has an annual turnover of not more than one hundred million shillings; (b)!does not carry on management, professional or training business; 83 2023 Finance No.

4 ! (c)!has not been formed as a result of splitting or restructuring of an existing entity; and (d)!has been in existence for a period of not more than five years.

6.

The Income Tax Act is amended by inserting the Insertion of new following new section immediately after section 7A section in Cap.

470.

Repatriated income.

7B.

(1) A non-resident person who carries on business in Kenya through a permanent establishment shall pay tax on repatriated income for the year of income.

(2) The repatriated income under subsection (1) shall be computed using the following formula R=A + (P - T) A12 Where R is the repatriated profit; A1 is the net assets at the beginning of the year; P is the net profit for the year of income calculated in accordance with generally accepted accounting principles; T is the tax payable on the chargeable income; and A2 is the net assets at the end of the year.

(3) The tax imposed under this section shall be in addition to tax chargeable on the income of the permanent establishment under section 4.

(4) For the purposes this section, net assets means the total book value of assets less total liabilities for the year of income and shall not include revaluation of assets.

7.

Section 10 of the Income Tax Act is amended by Amendment of inserting the following new subsection immediately after section 10 of Cap.

subsection (2) 470.

(3) Where a payment has been made to a non-resident person, withholding tax paid thereon shall not be ! 84 Finance 2023 No.

4 refundable or available for deduction against the income where an audit adjustment has been made in respect of such payment.

8.

Section 11 of the Income Tax Act is amended by Amendment of deleting subsection (3A).

section 11 of Cap.

470.

9.

Section 12C of the Income Tax Act is amended in Amendment of subsection (1) by deleting the words but does not exceed section 12C of or is not expected to exceed fifty million shillings and Cap.

470.

substituting therefor the following words but does not exceed or is not expected to exceed twenty-five million shillings.

10.

The Income Tax Act is amended by inserting the Insertion of a new following new section immediately after Section 12E section 12F in Cap.

470.

Digital asset tax.

12F.

(1) Notwithstanding any other provision of this Act, a tax to be known as digital asset tax shall be payable by a person on income derived from the transfer or exchange of digital assets.

(2) The owner of a platform or the person who facilitates the exchange or transfer of a digital asset shall deduct the digital asset tax and remit it to the Commissioner.

(3) A non-resident person who owns a platform on which digital assets are exchanged or transferred shall register under the simplified tax regime.

(4) A person who is required to deduct the digital asset tax shall, within five working days after making the deduction, remit the amount so deducted to the Commissioner together with a return of the amount of the payment, the amount of tax deducted, and such other information as the Commissioner may require.

(5) For the purposes of this section (a)!digital asset includes (i)! anything of value that is not tangible and cryptocurrencies, 85 2023 Finance No.

4 ! token code, number held in digital form and generated through cryptographic means or otherwise, by whatever name called, providing a digital representation of value exchanged with or without consideration that can be transferred, stored or exchanged electronically; and (ii)!a non-fungible token or any other token of similar nature, by whatever name called; and (b)!income derived from transfer or exchange of a digital asset means the gross fair market value consideration received or receivable at the point of exchange or transfer of a digital asset.

11.

Section 15 of the Income Tax Act is amended Amendment of section 15 of Cap.

470.

(a)!in subsection (2) by (i)! deleting paragraph (g) and substituting therefor the following new paragraph (b)!in subsection (3), by deleting the word five appearing in paragraph (b) and substituting therefor the word six; (c)!in subsection (7)(e), by deleting item (iii).

12.

Section 16 of the Income Tax Act is amended Amendment of section 16 of Cap.

470.

(a)!in subsection (1), by inserting the following new paragraph immediately after paragraph (b) (c) any expenditure or loss where the( invoices of the transactions are not generated from an electronic tax invoice management system except where the transactions have been exempted in accordance with the Tax No.

29 of 2015.

Procedures Act, 2015.

(b)!in subsection (2) ! 86 Finance 2023 No.

4 (i)! in paragraph (a), by deleting subparagraph (v); (ii)! in paragraph (j), by deleting the words related persons and third parties appearing in the opening words and substituting therefor the words a non-resident; (iii)!in paragraph (iii) of the proviso to paragraph (j) (A)!by deleting item G; (B)!by deleting item H; (iv)!by inserting the following new paragraphs at the end of the proviso to paragraph (j) (iv) any interest in excess of thirty per cent of earnings before interest, taxes, depreciation and amortization shall be an allowable deduction in ascertaining the total income of a person in the subsequent three years of income to the extent that the deduction of interest on loans from non-resident persons does not exceed the thirty percent threshold provided under this section; and (v) this provision shall not apply where the interest is exempt from tax under this Act.

(c)!in the definition of all loans appearing in subsection (3), by inserting the words but shall not include local loans immediately after the word premium.

13.

Section 18 of the Income Tax Act is amended by Amendment of deleting subsection (4).

section 18 of Cap.

470.

14.

Section 18A of the Income Tax Act is amended by Amendment of inserting the following new subsection immediately after section 18A of subsection (2) Cap.

470.

87 2023 Finance No.

4 ! (3) For the purposes of this section, qualifying intellectual property income that subject to the preferential tax rate shall be determined using the following formula ! = #$&( Where % I is income receiving tax benefits; Q is the research and development expenditures made by the taxpayer, excluding acquisition costs and related party outsourcing costs; T is the research and development expenditures made by the taxpayer, including acquisition costs and related party outsourcing costs; and P is intellectual property income including royalties, capital gains and any other income from the sale of an intellectual property asset including embedded intellectual property income calculated under transfer pricing principles: Provided that for the purposes of this subsection intellectual property losses shall only be deducted against intellectual property income.

15.

Section 18D of the Income Tax Act is amended Amendment of section 18D of Cap.

470.

(a)!by deleting subsection (1) and substituting therefor the following new subsection (1) Each ultimate parent entity that is resident in Kenya shall file a country-by-country report with the Commissioner in accordance with subsection (3).

(b)!by inserting the following new subsections immediately after subsection (1) (1A) A constituent entity that is resident in Kenya shall file a country-by-country report with the Commissioner in accordance with subsection (1B), if one of the following conditions applies (a)!the ultimate parent entity is not obligated to file a country-by-country report in its jurisdiction of tax residence; ! 88 Finance 2023 No.

4 (b)!the jurisdiction in which the ultimate parent entity is resident has a current international tax agreement which Kenya is a party to but does not have a competent authority agreement with Kenya at the time of filing the country-by-country report for the reporting financial year; or (c)!there has been a systemic failure of the jurisdiction of tax residence of the ultimate parent entity that has been notified by the Commissioner to the constituent entity resident in Kenya.

(1B) The provisions of subsections (1) and (1A) shall apply to a multinational enterprise group whose total consolidated group turnover, including extraordinary or investment income, is at least ninety-five billion shillings during the financial year immediately preceding the reporting financial year as reflected in its consolidated financial statements for such preceding financial year.

(c)!in subsection (2), by inserting the words or a constituent entity immediately after the words parent entity; (d)!in subsection (3), by deleting the words In addition to the provisions in subsection (1).

16.

Section 18F of the Income Tax Act is amended by Amendment of deleting the definition of ultimate parent entity and section 18F of substituting therefor the following new definition Cap.

470.

ultimate parent entity means an entity which (a)!is not controlled by another entity; and (b)!owns or controls, directly or indirectly, one or more constituent entities of a multinational enterprise group.

17.

Section 21 of the Income Tax Act is amended Amendment of section 21 of Cap.

470.

(a)!by deleting subsection (1) and substituting therefor the following new subsection (1) A body of persons which carries on the activities of a members club or trade association 89 2023 Finance No.

4 ! shall be deemed to be carrying on a business and the gross receipts on revenue account (excluding joining fees, welfare contributions and subscriptions) shall be deemed to be income from a business.

(b)!by deleting subsection (2).

18.

Section 28A of the Income Tax Act is amended- Amendment of section 28A of (a) in paragraph (b), by inserting the words or other Cap.470 manufacturing activities including refining immediately after the words human vaccines; and (b) by inserting the word and at the end of paragraph (b).

19.

Section 31 of the Income Tax Act is amended in Amendment of subsection (1) section 31 of Cap.

470.

(a)!by deleting the word his appearing in paragraph (b) and substituting therefor the words the individuals; (b)!deleting the words he, as well as his employer appearing in paragraph (c) and substituting therefor the words the individual and the individuals employer.

20.

The Income Tax Act is amended by inserting the Insertion of a new following new section immediately after section 31 section 31A of Cap.

470.

Post-retirement 31A.

A resident individual who proves medical fund relief.

that in a year of income the person has contributed to a post-retirement medical fund shall for that year of income be entitled to a personal relief in this Act referred to as the post-retirement medical fund relief.

21.

Section 35 of the Income Tax Act is amended Amendment of section 35 of Cap.

470.

(a)!in subsection (1) by inserting the following new paragraph immediately after paragraph (p)- (q) digital content monetisation; (b)!in subsection (3), by inserting the following paragraphs immediately after paragraph (j) ! 90 Finance 2023 No.

4 (k) sales promotion, marketing and advertising services; and (l) digital content monetisation.

(c)!by inserting the following new subsections immediately after subsection (3A) (3AA) A person who receives rental income on behalf of the owner of the premises shall deduct tax therefrom: Provided that only a person appointed by the Commissioner in writing for that purpose may deduct tax under this section.

(3AB) A person who deducts rental income tax under this section shall, within five working days after the deduction was made, remit the amount so deducted to the Commissioner together with a return in writing of the tax deducted and such other information as the Commissioner may require.

(3AC) The Commissioner shall, upon receipt of the amount remitted under subsection (3AB), furnish the person from whom the rental income tax was withheld with a certificate stating the amount of the rent and tax deducted therefrom.

(d)!in subsection (5), by deleting the words on or before the twentieth day of the month following the month in which and substituting therefor the words within five working days after.

22.

The Income Tax Act is amended by repealing Repeal of section 45.

section 45 of Cap.

470.

23.

The Income Tax Act is amended in section 133(6), Amend by deleting the expression 31st December 2023 and ment of section substituting therefor the expression 31st December, 133 of 2024.

Cap.

470 24.

The First Schedule to the Income Tax Act is Amendment of amended the First Schedule to Cap.

470.

(a)!by inserting the following new proviso immediately after the proviso to paragraph 10 Provided further that in this paragraph, institution, body of persons or irrevocable trust, 91 2023 Finance No.

4 ! of a public character means an entity established to benefit the public in a transparent and accountable manner without restriction or discrimination regardless of the level of charges or fees levied for services rendered, and which utilises its assets or income exclusively to carry out the purpose for which the entity was established without conferring a private benefit to an individual.

(b)!by deleting paragraph 65; (c)!by inserting the following new paragraphs immediately after paragraph 67 68.

Royalties paid to a non-resident person by a company undertaking the manufacture of human vaccines.

69.

Interest paid to a resident person or non- resident person by a company undertaking the manufacture of human vaccines.

70.

Investment income from a post-retirement medical fund, whether or not the fund is part of a retirement benefits scheme.

71.

Income earned by a non-resident contractor, sub-contractor, consultant or employee involved in the implementation of a project financed through a one hundred percent grant under an agreement between the Government and the development partner, to the extent provided for in the Agreement: Provided that the non-resident is in Kenya solely for the implementation of the project financed by the one hundred percent grant.

72.

Gains on transfer of property within a special economic zone enterprise, developer and operator.

73.

Royalties, interest, management fees, professional fees, training fees, consultancy fee, agency or contractual fees paid by a special economic zone developer, operator or enterprise, in the ! 92 Finance 2023 No.

4 first ten years of its establishment, to a non-resident person.

25.

The Second Schedule to the Income Tax Act is Amendment of amended the Second Schedule to Cap.

470.

(a)!in paragraph 1 (1) (a) by inserting the following new items immediately after item (vii) (viii) Industrial Building 10% (ix) Dock 10% in equal instalments (b)! in the proviso to paragraph 1 (i)! in the definition of civil works, by inserting the following new item immediately after item (v) (vi) earthworks for telecommunication equipment and construction works undertaken in connection with the installation and maintenance of telecommunication equipment and related structures.

(ii)! in paragraph (f), by inserting the words refining or immediately after the words means the appearing in the definition of manufacture; (iii)!by inserting the following new paragraphs immediately after paragraph (h) (i) dock includes a container terminal berth, harbour, wharf, pier, jetty, storage yard, or other works in or at which vessels load or unload merchandise but does not include a pier or jetty used for recreation; (j) industrial building includes a building in use for the purpose of transport, bridge, tunnel, inland navigation water and electricity or hydraulic power undertaking; (k) machinery used for agriculture means machinery used directly in agricultural 93 2023 Finance No.

4 ! activities including tilling, planting, irrigation, weeding and harvesting; (l) telecommunications equipment includes civil works deemed as part of the telecommunication equipment or civil works that contribute to the use of the telecommunication equipment.

(c)! by inserting the following new paragraph immediately after paragraph (1A) (1B) Paragraph (1A) shall apply to items listed under paragraphs 1(1)(a)(i) and (ii), and (1)(b)(i).

26.

The Third Schedule to the Income Tax Act is Amendment amended of the Third Schedule to Cap.

470.

(a)!in Head A, by inserting the following new paragraph immediately after paragraph 34.

Post-retirement medical fund relief The amount of post-retirement medical fund relief shall be fifteen per cent of the amount of contribution paid or sixty thousand shillings per annum, whichever is lower.

(b)!in Head B (i)! by deleting paragraph 1 and substituting therefor the following new paragraph 1.! The individual rates of tax shall be Rate in each shilling On the first Ksh.

288,000 10% On the next Ksh.

100,000 25% On the next Ksh.

5,612,000 30% On the next Ksh.

3,600,000 32.5% On all income over Ksh.

9,600,000 35% (ii)! by deleting paragraph 1A; (iii)! in paragraph 2(b), by inserting the following new item immediately after item (vii) ! 94 Finance 2023 No.

4 Rate in each twenty shillings (viii) for the year of 6.00 income 2024 and each subsequent year of income (iv)! by deleting the proviso to paragraph 2(j) and substituting therefor the following new proviso Provided that (i)! the rate of fifteen per cent shall be extended for a further period of five years if the company achieves a local content equivalent to fifty per cent of the ex-factory value of the motor vehicles; and (ii)! in this paragraph, local content means parts designed and manufactured in Kenya by an original equipment manufacturer operating in Kenya.

(v)! by inserting the following new subparagraph immediately after subparagraph 2(o) (p) in respect of a company undertaking the manufacture of human vaccines, ten per cent.

(vi)! in paragraph 3, by inserting the following new item immediately after item (r) (s) in the case of repatriated income under section 7B, fifteen per cent; (t) in the case of digital content monetisation, twenty percent of the gross amount; (vii)! in paragraph 5(ja), by deleting the word ten and substituting therefor the word seven point five; (viii)! in paragraph 5, by inserting the following new subparagraph immediately after subparagraphs (k) 95 2023 Finance No.

4 ! (l) in respect of payments for sales promotion, marketing, advertising services, five per cent of the gross amount; and (m) in respect of payments relating to digital content monetisation, five per cent.

(ix)! in paragraph 8, by deleting subparagraph (a) and substituting therefor the following new subparagraph (a) for vans, pick-ups, trucks, prime movers, trailers and lorries, two thousand five hundred shillings per tonne of load capacity per year or five thousand shillings per year, whichever is higher: Provided that advance tax shall not be imposed on the tractors or trailers used for agricultural purposes.

(x)! in paragraph 8, by deleting subparagraph (b) and substituting therefor the following new subparagraph (b) for saloons, station-wagons, mini- buses, buses and coaches, one hundred shillings per passenger capacity per month or five thousand shillings per year, whichever is higher.

(xi)! in paragraph 9, by deleting the word one and substituting therefor the word three; (xii)! in paragraph 10, by deleting the word ten and substituting therefor the word seven point five; (xiii)! by inserting the following new paragraph immediately after paragraph 12 13.

The rate of tax in respect of digital asset tax shall be three per cent of the transfer or exchange value of the digital asset.

! 96 Finance 2023 No.

4 27.

The Fourth Schedule to the Income Tax Act is Amendment of amended by inserting the following paragraph at the end the Fourth Schedule to Cap.

thereof 470.

Cap.

491.

Mortgage refinance companies licensed under the Central Bank of Kenya Act.

28.

The Eighth Schedule to the Income Tax Act is Amendment of amended the Eighth Schedule to Cap.

470.

(a)!by deleting paragraph 2 and substituting therefor the following new paragraph 2.

Taxation of gains Subject to this Schedule, income in respect of which tax is chargeable under section 3(2)(f) is (a)!the whole of the gains which accrued to a company, an individual or partnership on or after the 1st January, 2015, on the transfer of property situated in Kenya, whether or not the property was acquired before 1st January, 2015, or (b)!gains derived from the alienation of shares or comparable interests, including interests in a partnership or trust, if, at any time during the three hundred and sixty-five days preceding the alienation, the shares or comparable interests derived more than twenty per cent of their value directly or indirectly from immovable property situated in Kenya, or (c)!gains, other than those to which subparagraph (a) applies, derived from the alienation of shares of a company resident in Kenya if the alienator, at any time during the three hundred and sixty-five days preceding such alienation, held directly or indirectly at least twenty per cent of the capital of that company: Provided that for the purposes of this paragraph, the person alienating the shares shall notify the Commissioner in writing where there is a change of at least twenty 97 2023 Finance No.

4 ! per cent in the underlying ownership of the property.

(b)!in paragraph 8, by inserting the following new subparagraph immediately after subparagraph (4) (4A) Where property is transferred in a transaction that is not subject to capital gains tax, and the property is subsequently transferred in a taxable transaction within a period of less than five years, then the adjusted cost in the subsequent transfer shall be based on the original adjusted cost as determined in the first transfer.

(c)!by deleting paragraph 11A and substituting therefor the following new paragraph 11A.

The due date for tax payable in respect of property transferred under this Part shall be the earlier of (a)!receipt of the full purchase price by the vendor; or (b)!registration of the transfer.

(d)!in paragraph 13, by deleting item (c) and substituting therefor the following new item (c) an internal restructuring which does not involve a transfer of property to a third party within a group which has existed for at least twenty-four months.

29.

The Ninth Schedule to the Income Tax Act is Amendment of amended in paragraph 14, by deleting the words ten per the Ninth Schedule to Cap.

cent appearing in subparagraph (1) and substituting 470.

therefor the words twenty per cent.

PART IIVALUE ADDED TAX 30.

Section 5 of the Value Added Tax Act, 2013, is Amendment of amended in subsection (2) section 5 of No.

35 of 2013.

(a)!by deleting paragraph (aa); (b)!by deleting paragraph (ab).

31.

Section 8 of the Value Added Tax Act, 2013, is Amendment of amended in subsection (2), by deleting the words not a section 8 of No.

35 of 2013.

! 98 Finance 2023 No.

4 registered person and and substituting therefor the words a registered or unregistered person.

32.

Section 12 of the Value Added Tax Act, 2013 is Amendment of amended by inserting the following new subsection section 12 of immediately after subsection (1) - No.

35of 2013 (1A) Subject to sub-section (1), in the case of the national carrier, the time of supply shall be the date on which the goods are delivered or services performed.

33.

Section 17 of the Value Added Tax Act, 2013, is Amendment of amended section 17 of No.

35 of 2013.

(a)!in subsection (2), by deleting the word or appearing in paragraph (a) and substituting therefor the word and; (b)!by inserting the following new subsection immediately after subsection (8) (9) Where a bona fide owner of taxable supplies, who has deducted input tax under subsection (1), is compensated for the loss of the taxable supplies, the compensation shall be treated as a taxable supply and (a)!if the compensation includes value added tax, the compensation shall be declared and the value added tax thereon remitted to the Commissioner; or (b)!if the compensation does not include value added tax, the compensation shall be declared and subjected to value added tax and the tax remitted to the Commissioner.

34.

Section 31 of the Value Added Tax Act, 2013 is Amendment amended by deleting sub-section (1) and substituting section 31 of No.

therefor the following new sub-section 35 of 2013 (1) Where a registered person has made a supply and has accounted for and paid tax on that supply but has not received any payment from the person liable to pay the tax on that supply and that person (a)!has not received any payment from the person liable to pay the tax, he may, after a period of three years from the date of the supply; or 99 2023 Finance No.

4 ! (b)!the person to whom the supply was made has been placed under statutory management through the appointment of an administrator, receiver, or liquidator, he may apply to the Commissioner for refund of the tax involved: Provided that- (a)!no application for a refund shall be made under this section after the expiry of ten years from the date of supply; (b)!the refund shall be made in compliance with section 47(5) of the Tax Procedures Act; (c)!the amounts may be credited to the taxpayers record for use against future value added tax liabilities; (d)!where the tax refunded under sub-section (1) and (2) is subsequently recovered from the recipient of the supply, the registered person shall refund the tax to the Commissioner with sixty days of the date of recovery; (e)!if the payment is made within the time specified under subsection (1) and (2), an interest of two per cent per month or part thereof of the tax refunded shall forthwith be due and payable and the interest shall not exceed one hundred per cent of the refunded amount.

35.

Section 34 of the Value Added Tax Act, 2013, is Amendment of amended in subsection (1), by deleting the proviso and section 34 of No.

substituting therefor the following new proviso 35 of 2013.

Provided that a person supplying imported digital services over the internet, an electronic network or through a digital marketplace shall register whether or not the taxable supplies meet the turnover threshold of five million shillings.

36.

Section 43 of the Value Added Tax Act, 2013, is Amendment of amended in subsection (1), by deleting the words in section 43 of No.

Kenya.

35 of 2013.

37.

The First Schedule to the Value Added Tax Act, Amendment of 2013, is amended First Schedule to No.

35 of 2013.

! 100 Finance 2023 No.

4 (a)! in Section A of Part I (i)! by deleting paragraph 20 and substituting therefor the following new paragraph 20.

Fish and crustaceans, molluscs and other aquatic invertebrates of Chapter 3 excluding those of tariff headings 0305, 0306 and 0307; (ii)! by inserting the following tariff numbers and corresponding tariff descriptions, in proper sequence, into the table appearing immediately after paragraph 39 Tariff Number Description 3003.41.00, Other medicaments, containing alkaloids 3003.42.00, or derivatives thereof, put up in measured 3003.43.00, doses or in forms or packings for retail and sale 3003.49.00 3003.90.00 Infusion solutions for ingestion other than by mouth not put up in measured doses or in forms or packings for retail sale and other medicaments consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale 3005.90.11, White absorbent cotton wadding, 3005.90.12, impregnated or coated with 3005.90.19 pharmaceutical substances, or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes (iii)! by deleting the tariff numbers; 0402.29.10, 3002.19.00 and their corresponding tariff description, appearing in the table immediately after paragraph 39; (iv)! by deleting the tariff number 3002.11.00 appearing in the table immediately after paragraph 39 and substituting therefor the tariff number 3822.11.00; 101 2023 Finance No.

4 ! (v)! by deleting the tariff number 3002.20.00 appearing in the table immediately after paragraph 39 and substituting therefor the tariff number 3002.41.00; (vi)! by deleting the tariff number 3002.30.00 appearing in the table immediately after paragraph 39 and substituting therefor the tariff number 3002.42.00; (vii)! in the table appearing immediately after paragraph 39 by deleting the tariff description corresponding to the tariff number 3003.39.00 and substituting therefor the following new tariff description Other medicaments, containing hormones or other products of heading no.

29.37, not put up in measured doses or in forms or packings for retail sale.

(viii)! in the table appearing immediately after paragraph 39 by deleting the tariff description corresponding to tariff number 3004.20.00 and substituting therefor the following new tariff description Other medicaments containing antibiotics, put up in measured doses or in forms or packings for retail sale.

(ix)! in the table appearing immediately after paragraph 39 by deleting the tariff description corresponding to the tariff number 3004.32.00 and substituting therefor the following new tariff description Other, medicaments containing hormones or other products of heading 29.37 containing corticosteroid hormones, their derivatives or structural analogue of tariff.

(x)! by deleting the tariff number 3006.20.00 appearing in the table appearing immediately after paragraph 39 and substituting therefor the tariff number 3822.13.00; ! 102 Finance 2023 No.

4 (xi)! in the table appearing immediately after paragraph 39 by inserting the words on other products of heading 29.37 or immediately before the word spermicides appearing in the tariff description corresponding to the tariff number 3006.60.00; (xii)! in the table appearing immediately after paragraph 39 by deleting the words Other artificial parts of the body appearing in the tariff description corresponding to the tariff number 9021.50.00; (xiii)! in the table appearing immediately after paragraph 39 by deleting the tariff numbers; 3005.90.10, 3004.90.90, and3003.90.10 and their corresponding tariff description thereof; (xiv)! by deleting paragraph 49 and substituting therefor the following new paragraph 49.

All goods and parts thereof of chapter 88; (xv)! by deleting paragraph 63 and substituting therefor the following new paragraph 63.

Taxable goods for the direct and exclusive use in the construction and equipping of specialized hospitals with a minimum bed capacity of fifty, approved by the Cabinet Secretary upon recommendation by the Cabinet Secretary responsible for health who may issue guidelines for determining eligibility for the exemption.

(xvi)! by deleting paragraph 66A; (xvii)! by deleting paragraph 71 and substituting therefor the following new paragraph 71.

Printed and unprinted Perforated PE film of other plastics 15-22 gsm of tariff numbers 3921.90.10, and 3921.90.90.

(xviii)!by deleting paragraph 108; 103 2023 Finance No.

4 ! (xix)! by deleting paragraph 119 and substituting therefor the following new paragraph 119.

Diagnostic kits or laboratory reagents and their certified reference materials of heading 38.22 upon approval by the Cabinet Secretary responsible for matters relating to health; (xx)! by deleting paragraph 120 and substituting therefor the following new paragraph 120.

Electro-diagnostic apparatus, of tariff numbers 9018.11.00, 9018.12.00, 9018.13.00, 9018.14.00, 9018.19.00, and other apparatus, Instruments and appliances of tariff numbers 9018.20.00, 9018.90.00 upon approval by the Cabinet Secretary responsible for matters relating to health.

(xxi)! by deleting paragraph 122 and substituting therefor the following new paragraph 122.

Other instruments and appliances, used in dental sciences of tariff 9018.49.00, Other ophthalmic instruments and appliances of tariff 9018.50.00 and other instruments and appliances of tariff number 9018.90.00 upon approval by the Cabinet Secretary responsible for matters relating to health.

(xxii)! by deleting paragraph 125 and substituting therefor the following new paragraph 125.

Artificial teeth of tariff number 9021.21.00, other dental fittings of tariff number 9021.29.00 and other artificial parts of the body of tariff numbers 9021.31.00 and 9021.39.00 and other appliances of tariff number 9021.90.00 upon approval by the Cabinet Secretary responsible for matters relating to health.

(xxiii)!by deleting paragraph 128 and substituting therefor the following new paragraph ! 104 Finance 2023 No.

4 128.

Discs, tapes, solid-state non-volatile storage devices, smartcards and other media for the recording of sound or of other phenomena, whether or not recorded of tariff heading 85.23, including matrices and masters for the production of discs, but excluding products of Chapter 37 upon approval by the Cabinet Secretary responsible for matters relating to health.

(xxiv)! by deleting paragraph 129 and substituting therefor the following new paragraph 129.

Weighing machinery (excluding balances of a sensitivity of 5 cg or better), of tariff number 8423.10.00 purchased or imported by registered hospitals upon approval by the Cabinet Secretary responsible for matters relating to health.

(xxv)! by deleting paragraph 130; (xxvi)! by inserting the words or locally purchased immediately after the word imported appearing in paragraph 140; (xxvii)! by amending paragraph 145 in paragraph (b) by inserting the words or other manufacturing activities including refining immediately after the words human vaccines; and (xxviii)! by inserting the following new paragraph immediately after paragraph 146 147.

Taxable supplies made to or by a school feeding programme recognized by the Cabinet Secretary responsible for matters relating to education.

(b)!in Part II in paragraph 34 (a) by deleting the words goods, inputs and raw materials and substituting therefor the word services; and 105 2023 Finance No.

4 ! (b) by inserting the words or other manufacturing activities including refining immediately after the words human vaccines in paragraph (b); 38.

The Second Schedule to the Value Added Tax Act, Amendment of 2013, is amended the Second Schedule to No.

35 of 2013.

(a)!in Part A (i)! by deleting paragraph 20 which provides as follows 20.

The supply of maize (corn) flour, cassava flour, wheat or meslin flour and maize flour containing cassava flour by more than ten percent in weight: Provided this paragraph shall be in operation for a period of six months from the date of assent.

(ii)! by deleting paragraph 23 and substituting therefor the following new paragraph 23.

The exportation of taxable services.

(iii)! by inserting the following new paragraph immediately after paragraph 25 26.

Inbound international sea freight offered by a registered person.

27.

Liquefied Petroleum Gas.

28.

All tea and coffee locally purchased for the purpose of value addition before exportation subject to approval by the Commissioner-General.

29.

The supply of locally assembled and manufactured mobile phones.

30.

The supply of motorcycles of tariff heading 8711.60.00 31.

The supply of electric bicycles.

32.

The supply of solar and lithium ion batteries.

! 106 Finance 2023 No.

4 33.

The supply of electric buses of tariff heading 87.02.

34.

Inputs or raw materials locally purchased or imported for the manufacture of animal feeds.

35.

Bioethanol vapour (BEV) Stoves classified under HS Code 7321.12.00 (cooking appliances and plate warmers for liquid fuel).

PART IIITAX APPEALS TRIBUNAL 39.

Section 13 of the Tax Appeals Tribunal Act, 2013, Amendment of is amended section 13 of No.

40 of 2013.

(a)!in subsection (2), by deleting paragraph (c) and substituting therefor the following new paragraphs (c) the appealable decision; and (d) such other documents as may be necessary to enable the Tribunal to make a decision on the appeal.

(b)!by inserting the following new subsection immediately after subsection (8) (9) For the purposes of this section, appealable decision has the meaning assigned to it in section 3(1) of the Tax No.

29 of 2015.

Procedures Act, 2015.

PART IVEXCISE DUTY 40.

Section 2 of the Excise Duty Act, 2015, is Amendment of amended in the definition of excise control by deleting section 2 of No.

the expression section 23 and substituting therefor the 23 of 2015 expression section 24.

41.

The Excise Duty Act, 2015, is amended by Repeal of section repealing section 10.

10 of No.

23 of 2015.

42.

Section 20 of the Excise Duty Act, 2015, is Amendment of amended in subsection (5), by inserting the words being section 20 of No.

not less than fourteen days immediately after the words 23 of 2015 date specified in the notice appearing in paragraph (b).

43.

Section 28 of the Excise Duty Act, 2015, is Amendment of amended by inserting the following new subsections section 28 of No.

immediately after subsection (5) 23 of 2015.

107 2023 Finance No.

4 ! (6) A person who (a)!defaces or prints over an excise stamp affixed on any excisable goods or package; (b)!knowingly is in possession of excisable goods on which excise stamps have not been affixed and which have not been exempted from the requirements of this Act or Regulations made under this Act; (c)!acquires or attempts to acquire an excise stamp without the authority of the Commissioner; (d)!prints, counterfeits, makes or in any way creates an excise stamp without the authority of the Commissioner; (e)!knowingly is in possession of an excise stamp which has been printed, made or in any way acquired without the authority of the Commissioner; (f)! knowingly is in possession of, conveys, distributes, sells, offers for sale or trades in excisable goods without affixing excise stamps in accordance with this Act or Regulations made under this Act; or (g)!is in possession of, conveys, distributes, sells, or trades in excisable goods which have been affixed with counterfeit excise stamps, commits an offence.

(7) A person who commits an offence under subsection (6) is liable, upon conviction, to a fine not exceeding five million shillings or imprisonment for a term not exceeding three years, or to both.

44.

Section 36 of the Excise Duty Act, 2015, is Amendment of amended by inserting the following new subsection section 36 of No.

23 of immediately after subsection (1)- 2015.

(1A) Despite subsection (1), in the case of a licensed manufacturer of alcoholic beverages, excise duty shall be payable to the Commissioner within twenty-four hours upon removal of the goods from the stockroom.

! 108 Finance 2023 No.

4 45.

The Excise Duty Act, 2015, is amended by Insertion of new inserting the following new section immediately after section in No.

23 section 36 of 2015.

Payment of excise 36A.

(1) Despite the provisions of duty within twenty- section 36, excise duty on betting and four hours.

gaming, offered through a platform or other medium, shall be remitted to the Commissioner by a bookmaker within twenty-four hours from the closure of transactions of the day.

(2) For the purposes of this section, closure of transactions of the day means midnight of that day.

(3) The Commissioner may, by notice in the Gazette, require taxpayers in any sector to remit excise duty collected on certain excisable services within twenty-four hours from the closure of transactions of the day.

46.

The Excise Duty Act, 2015, is amended by Repeal of section repealing section 40.

40 of No.

23 of 2015.

47.

The First Schedule to the Excise Duty Act, 2015, Amendment of is amended First Schedule to No.

23 of 2015.

(a)!in Part I (i)! by deleting the tariff number 2709.00.10 appearing in paragraph 1, and the corresponding tariff description and rate of duty; (ii)!by deleting the tariff description Imported White chocolate including chocolate in blocks, slabs or bars of tariff nos.

1806.31.00, 1806.32.00, and 1806.90.00 and substituting therefor the following tariff description Imported white chocolate of heading 1704; Imported chocolate and other food preparations containing cocoa of tariff nos.

1806.31.00, 1806.32.00 and 1806.90.00; (iii)! by inserting the word Imported immediately before the tariff description 109 2023 Finance No.

4 ! Articles of plastic of tariff heading 3923.30.00 and 3923.90.90; (iv)! by deleting the following description Motorcycles of tariff 87.11 other than motorcycle ambulances and locally assembled motorcycles and substituting therefor the following new description Motorcycles of tariff 87.11 other than motorcycle ambulances, locally assembled motorcycles and electric motorcycles; (v)! in the item of tariff description Imported Glass bottles (excluding imported glass bottles for packaging of pharmaceutical products) by deleting the rate of excise duty of 25% and substituting therefor the rate of excise duty of 35%; (vi)! in the item of tariff description Imported Alkyd by deleting the rate of excise duty of 10% and substituting therefor the rate of excise duty of 20%; (vii)! in the item of tariff description Imported Unsaturated polyester by deleting the rate of excise duty of 10% and substituting therefor the rate of excise duty of 20%; (viii)!in the item of tariff description Imported Emulsion VAM by deleting the rate of excise duty of 10% and substituting therefor the rate of excise duty of 20%.

(ix)! in the item of tariff description Imported Emulsion - styrene Acrylic by deleting the rate of excise duty of 10%and substituting therefor the rate of excise duty of 20%; (x)! in the item of tariff description Imported Homopolymers by deleting the rate of excise duty of 10% and substituting therefor the rate of excise duty of 20%; (xi)! in the item of tariff description Imported Emulsion B.A.M.

by deleting the rate of excise duty of 10% and substituting therefor the rate of excise duty of 20%.

! 110 Finance 2023 No.

4 (xii)! by inserting the following new items at the end of the second table appearing in paragraph 1 Description Rate of excise duty Imported fish 10% Powdered juice Shs.

25 per kg Imported sugar excluding Shs.

5 per kg imported sugar purchased by a registered pharmaceutical manufacturer; Imported cement 10% of the value or shs.

1.50 per kg, whichever is higher Imported furniture of tariff 30% heading 9403 excluding furniture originating from East African Community Partner States that meet the East African Community Rules of Origin Imported cellular phones 10% Imported paints, varnishes and 15% lacquers of heading 3208, 3209 and 3210 Imported non- virgin test liner of 25% heading 4805.24.00 Imported non-virgin fluting 25% medium of heading 4805.19.00 Imported cartons, boxes and cases 25% of corrugated paper or paper board and imported folding cartons, boxes and case of non-corrugated paper or paper board and imported skillets, free-hinge lid packets of tariff heading 4819.10.00, 4819.20.10 and 4819.20.90; Imported plates of plastic of tariff 25% heading 3919.90.90, 3920.10.90, 3920.43.90, 3920.62.90 and 3921.19.90 111 2023 Finance No.

4 ! Imported paper or paper board, 25% labels of all kinds whether or not printed of tariff heading 4821.10.00 and 4821.90.00 (b)!in Part II (i)! by deleting the words twenty percent appearing in paragraph 1 and substituting therefor the words fifteen percent; (ii)! by deleting the words twenty percent appearing in paragraph 2 and substituting therefor the words fifteen percent; (iii)!by deleting the words shall be twelve percent appearing in paragraph 3 and substituting therefor the words or payment service provides licensed under the National Payment System Act, 2011, shall be fifteen percent; (iv)!by deleting the words seven-point five per cent appearing in paragraph 4A and substituting therefor the words twelve point five per cent; (v)! by deleting the words seven-point five per cent appearing in paragraph 4B and substituting therefor the words twelve point five per cent; (vi)!by deleting the words seven-point five per cent appearing in paragraph 4C and substituting therefor the words twelve point five per cent; (vii)!by deleting the words seven-point five per cent appearing in paragraph 4D and substituting therefor the words twelve point five per cent; (viii)!by deleting paragraph 7; (ix)!by inserting the following new paragraph immediately after paragraph 78.

Excise duty on fees charged on advertisement on television, print media, billboards and radio stations on alcoholic ! 112 Finance 2023 No.

4 beverages, betting, gaming, lotteries and prize competitions shall be at the rate of fifteen per cent.

(c)!in Part III by inserting the words or gaming immediately after the word betting appearing in the definition of amount wagered or staked.

48.

The Second Schedule to the Excise Duty Act, Amendment of the 2015 is amended in Part A by inserting the following new Second Schedule paragraph immediately after paragraph 16- to No.

23 of 2015.

17.

Disassembled or unassembled kits for local assembly or manufacture mobile phones.

PART VITAX PROCEDURES 49.

Section 3 of the Tax Procedures Act, 2015, is Amendment of amended in the definition of tax decision section 3 of No.

29 of 2015.

(a)!by deleting item (e); (b)!by inserting the words or late payment interest immediately after the word penalty appearing in paragraph (g).

50.

Section 6A of the Tax Procedures Act, 2015, is Amendment of amended by inserting the following new subsection section 6A of No.

immediately after subsection (2) 29 of 2015.

(3) Any multilateral agreement or treaty that has been entered into by or on behalf of the Government of Kenya relating to mutual administrative assistance in the collection of taxes shall have effect in the manner stipulated in such agreement or treaty.

51.

Section 23 of the Tax Procedures Act, 2015, is Amendment of amended by inserting the following new subsection section 23 of No.

immediately after subsection (3) 29 of 2015.

(3A) A trustee resident in Kenya who administers a trust registered in Kenya or outside Kenya shall maintain and avail to the Commissioner records required under a tax law, whether the income generated is subject to tax in Kenya or not.

52.

The Tax Procedures Act, 2015, is amended by Insertion of a new inserting the following new section immediately after section to No.

29 section 23 of 2015.

113 2023 Finance No.

4 ! Electronic tax 23A.

(1) The Commissioner may invoices.

establish an electronic system through which electronic tax invoices may be issued and records of stocks kept for the purposes of this Act.

(2) A person who carries on business shall (a)!issue an electronic tax invoice through the system established under subsection (1); and (b)!maintain a record of stocks in the system established under subsection (1).

(3) Where an electronic tax invoice required to ascertain tax liability is issued by a resident person or the permanent establishment of a non-resident person, that invoice shall be generated through the system established under subsection (1).

(4) The electronic tax invoice referred to in subsection (3) may exclude emoluments, imports, investment allowances, interest, airline passenger ticketing and similar payments.

(5) The Commissioner may, by notice in the Gazette, exempt a person from the requirements of this section.

53.

Section 31 of the Tax Procedures Act, 2015, is Amendment of amended in the opening words of subsection (6), by section 31 of No.

deleting the word original.

29 of 2015.

54.

The Tax Procedures Act, 2015, is amended by Insertion of a new inserting the following new section immediately after section of No.

29 section 32 of 2015.

32A.

(1) The Commissioner may recover or Mutual collect a tax claim pursuant to an international tax administrative assistance in the agreement contemplated in section 6A (3).

recovery or collection tax claims.

(2) The recovery of the tax claim under subsection (1), shall be in response to a request by the competent authority of a party to the international tax agreement.

! 114 Finance 2023 No.

4 (3) The request under subsection (2) shall be in respect of a tax claim which forms the subject of the international tax agreement permitting its enforcement in the requesting party and, unless otherwise agreed between the parties, which is not contested: Provided that where the tax claim is against a person who is not a resident of the requesting state, this section shall only apply, unless otherwise agreed between the parties to the international tax agreement, where the claim may no longer be contested.

(4) The Commissioner, in respect of a request under subsection (2) (a)!may apply for an order under section 43(3); and (b)!shall issue to the person who is alleged to be liable to pay the tax a notice requiring that person to state, within the period specified in the notice, whether that person admits liability for the amount or a lesser amount.

(5) The request under subsection (2) shall (a)!be in the prescribed form; (b)!be accompanied by a tax claim issued by the requesting party in the form provided for by the relevant law of that requesting party; (c)!indicate the amount of the tax due; (d)!indicate whether liability for the amount is contested under the laws of the requesting party; (e)!indicate, where liability for the amount is contested, whether the requesting party believes that the purpose of the dispute is to delay or frustrate the collection of the amount alleged to be due; and (f)! indicate whether there is a risk of the person who is alleged to be liable to pay 115 2023 Finance No.

4 ! the tax due, dissipating or concealing assets.

(6) Where the person who is alleged to be liable to pay the tax due admits liability, the Commissioner may issue a notice requiring that person to pay the amount for which the person has admitted liability, on a date specified in the notice.

(7) Where the person who is alleged to be liable to pay the tax due contests liability, the Commissioner shall, after consulting the requesting party, determine whether (a)!the liability for the amount due is not disputed in terms of the relevant laws of the requesting state; (b)!despite the liability for the tax due being contested, the purpose of the dispute is to delay or frustrate the collection of the tax due; or (c)!there is a risk of the person who is alleged to be liable to pay the tax due, dissipating or concealing assets, and the Commissioner may then issue a notice requiring that person to pay the tax due or amount specified in the notice, on a date specified in the notice.

(8) If the person fails to comply with the notice under subsection (6), the Commissioner may commence proceedings for the recovery of the tax claim.

(9) The steps taken to assist the requesting party shall not affect the right of the person who is alleged to be liable to pay the tax due to have the liability for the tax determined in accordance with the Laws of Kenya.

(10) Where the Commissioner recovers or collects the tax due to the requesting party, the Commissioner shall deposit the amount into a dedicated account in the Central Bank of Kenya after which the amount shall be remitted to an account specified by the requesting party.

! 116 Finance 2023 No.

4 55.

The Tax Procedures Act, 2015, is amended Repeal of repealing section 37.

section 37 of No.

29 of 2015.

56.

The Tax Procedures Act, 2015, is amended by Insertion of inserting the following new section immediately after a new section to section 37D No.

29 of 2015.

Commissioner to 37E.

(1) Notwithstanding any other refrain from provision of this Act, the Commissioner shall recovering interest, penalties or fines.

refrain from recovering penalties or interest on tax debt where a person had paid all the principal tax due before the 31st December, 2022.

(2)!Where all the principal tax due had not been paid before the 31st December, 2022, a person shall apply to the Commissioner for an amnesty of interest or penalties on the unpaid tax, and propose a payment plan for the outstanding amount.

(3)!For the purposes of subsection (2) (a)!the amnesty shall be on interest or penalties on the unpaid tax that have accrued up to the 31st December, 2022; (b)!the amnesty shall only be granted once if the person (i)! applies for amnesty and pays all the outstanding principal taxes not later than the 30th June 2024; (ii)! does not incur a further tax debt; and (iii)! signs a commitment letter for the settlement of all outstanding taxes that the person may owe.

(4) Despite subsection (2), any amount of principal tax as at 31st December, 2022 that remains unpaid on the 30th June, 2024, 117 2023 Finance No.

4 ! shall attract interest and penalties for which no amnesty shall be granted under this section.

(5) Despite subsection (1) the Commissioner shall not remit, in whole or in part, any penalty or interest payable by a person, imposed under section 85.

57.

Section 42 of the Tax Procedures Act, 2015, is Amendment of amended by deleting subsection (14) and substituting section 42 of therefor the following new subsection No.

29 of 2015.

(14) The Commissioner shall not issue a notice under this section unless (a)!the taxpayer has defaulted in paying an instalment under section 33(2); (b)!the Commissioner has raised an assessment and the taxpayer has not objected to or challenged the validity of the assessment within the prescribed period; (c)!the taxpayer has not appealed against an assessment specified in an objection decision within the prescribed timelines; (d)!the taxpayer has made a self-assessment and submitted a return but has not paid the taxes due before the due date lapsed; or (e)!the taxpayer has not appealed against an assessment specified in a decision of the Tribunal or court.

58.

Section 42A of the Tax Procedures Act, 2015, is Amendment of amended section 42A of No.

29 of 2015.

(a)!in the proviso to subsection (1), by deleting the words commencement of this Act and substitute st therefor the expression 1 July, 2022.

(b)!by deleting subsection (4B) and substituting therefor the following new subsection (4B) The tax withheld under this section shall be remitted to the Commissioner within five working days after the deduction was made.

(c) in subsection 4C (b) by deleting the words twentieth day of the month following that in which and ! 118 Finance 2023 No.

4 substituting therefor the words fifth working day after.

59.

The Tax Procedures Act, 2015, is amended by Insertion of new inserting the following new section immediately after section of No.

section 42B 29 of 2015.

Appointment of rental 42C.

(1) The Commissioner may income tax agents.

appoint an agent for the purpose of the collection and remittance of rental income tax to the Commissioner.

(2) An appointment under subsection (1) may be revoked at any time by the Commissioner.

60.

Section 47 of the Tax Procedures Act, 2015, is Amendment of amended section 47 of No.

29 of 2015.

(a)!in subsection (1), by inserting the words outstanding tax debts and immediately after the word taxpayers appearing in paragraph (a); (b)!in subsection (2) (i)! by inserting the words outstanding tax debts or immediately after the word such appearing in paragraph (a); (ii)!by deleting the words two years from the date of application appearing in paragraph (b) and substituting therefor the words six months from the date of ascertainment and, if the Commissioner fails to refund, the overpaid tax shall be applied to offset the taxpayers outstanding tax debt or future tax liabilities; (c)!by inserting the following new subsection immediately after subsection (4) (4A) Where an application under subsection (1) has been subjected to an audit under subsection (4), the Commissioner shall ascertain and determine the application within one hundred- and twenty-days failure to which, the application shall be deemed to have been ascertained and approved.

61.

Section 51 of the Tax Procedures Act, 2015, is Amendment of amended section 51 of No.

29 of 2015.

119 2023 Finance No.

4 ! (a)!in subsection (4), by inserting the words and request the taxpayer to submit the information specified in the notice within seven days after the date of the notice immediately after the words validly lodged; (b)!by inserting the following new subsection immediately after subsection (4) (4A) Despite subsection (3), where a taxpayer fails to provide the information required under subsection (4) or fails to provide the information within the specified period, the Commissioner may make an objection decision within sixty days after the date on which the notice of objection was lodged.

62.

Section 55 of the Tax Procedures Act, 2015, is Amendment of amended in subsection (1), by deleting the words ninety section 55 of days and substituting therefor the words one hundred and No.

29 of 2015.

twenty days.

63.

The Tax Procedures Act, 2015, is amended by Insertion of new inserting the following new section immediately after section of No.

section 59 29 of 2015.

Data management and 59A.

(1) The Commissioner may reporting system.

establish a data management and reporting system for the submission of electronic documents including detailed transactional data relating to those documents.

(2) The Commissioner shall notify in writing the persons required to submit electronic documents through the system established under subsection (1).

(3) The electronic documents referred to in subsection (2) include electronic invoice returns (a)!of payments made by a person in the ordinary course of business where goods were exchanged for consideration by a person not employed in the business; (b)!for payments made by a person in the ordinary course of business ! 120 Finance 2023 No.

4 where services were rendered, or in anticipation of services to be rendered, by a person not employed in the business; (c)!for payments for services rendered, or in anticipation of services to be rendered, in connection with the formation, acquisition, development, or disposal of a business or a part of it, by persons not employed in the business; (d)!for periodical or lump sum payments in respect of a royalty; or (e)!for such other commercial or financial transaction as may be designated by the Commissioner.

(4) For the purposes of this section (a)!transactional data includes (i)! the names and addresses of each person to whom a payment was made; (ii)! where the payment is for services, the amount of the payment specifying whether the payment is a commission of any kind or is for expenses incurred in connection with rendering the services; (iii)! where the payment is in any form of valuable consideration other than money, the particulars of the consideration; and (iv)! such other particulars as the Commissioner may specify; (b)!references to payments for services include references to payments in the nature of commission of any kind and references to payments in 121 2023 Finance No.

4 ! respect of expenses incurred in connection with the rendering of services; and (c)!references to the making of payments include references to the giving of any form of valuable consideration, and the requirement imposed by paragraph (a)(iii) to state the amount of a payment shall, in relation to any consideration given otherwise than in the form of money, be construed as a requirement to give particulars of the consideration.

64.

The Tax Procedures Act, 2015, is amended by Repeal and repealing section 86 and substituting therefor the following replacement of section 86 of No.

new section 29 of 2015.

Penalty for failing to 86.

(1) Where a tax law requires a comply with taxpayer to issue an electronic tax invoice, electronic tax system.

submit a tax return in electronic form or pay a tax electronically, and the taxpayer fails to comply with that tax law, the Commissioner shall issue a notice in writing to the taxpayer requesting the reasons for the non- compliance.

(2) Where the reasons given under subsection (1) do not satisfy the Commissioner, the taxpayer shall be liable to a penalty of two times the tax due.

65.

Section 89 of the Tax Procedures Act, 2015, is Amendment of amended section 89 of No.

29 of 2015.

(a)!by deleting subsection (6); (b)!by deleting subsection (7); (c)!by deleting subsection (8).

66.

The Tax Procedures Act, 2015, is amended by Insertion of new inserting the following new section immediately after section of No.

29 section 97 of 2015.

Offence of 97A.

(1) A person who is not an impersonating an authorised officer commits an offence if that authorized officer.

! 122 Finance 2023 No.

4 person assumes the name or designation of an authorised officer and performs or procures the performance of any act which that person is not entitled to do.

(2) A person convicted of an offence under subsection (1) shall be liable to imprisonment for a term not exceeding three years.

67.

Section 104 of the Tax Procedures Act, 2015, is Amendment of amended in subsection (1), by deleting the word and and section 104 of No.

substituting therefor the word or.

29 of 2015.

PART VIIMISCELLANEOUS FEES AND LEVIES 68.

Section 7 of the Miscellaneous Fees and Levies Amendment Act, 2016, is amended section 7 of No.

29 of 2016.

(a)!in subsection (2), by deleting the words three point five and substituting therefor the words two point-five; (b)!by deleting subsection (2A); (c)!in subsection (3), by deleting paragraph (b).

69.

Section 5 of the Miscellaneous Fees and Levies Amendment of Act, 2016, is amended by deleting subsection (4).

section 5 of No.

29 of 2016.

70.

The Miscellaneous Fees and Levies Act, 2016, is Insertion of new amended by inserting the following new section section in No.

29 immediately after section 7 of 2016.

Export and 7A.

(1) There shall be paid a levy to be investment promotion levy.

known as the export and investment promotion levy, on all goods specified in the Third Schedule, imported into the country for home use.

(2) The levy shall be at the rates specified in the Third Schedule and shall be paid by the importer of such goods at the time of entering the goods into the country for home use.

(3) The purpose of the levy shall be to provide funds to boost manufacturing, increase exports, create jobs, save on foreign exchange and promote investments.

123 2023 Finance No.

4 ! (4) The export and investment promotion levy shall not be charged on goods originating from East African Community Partner States that meet the East African Community Rules of Origin.

(5) The funds collected from the levy shall be paid into a fund established and managed in accordance with the Public Finance Management Act, 2012.

No.

18 of 2012.

71.

Section 8 of the Miscellaneous Fees and Levies Amendment Act, 2016, is amended section 8 of No.

29 of 2016.

(a)!in subsection (2) by deleting the words two and substituting therefor the words one point-five; (b)!by deleting subsection (2A).

72.

The table appearing in Part I of the First Schedule Amendment of the to the Miscellaneous Fees and Levies Act, 2016, is First Schedule to amended by No.

29 of 2016.

(a)!deleting the tariff description together with the rates of export levy corresponding to tariff number 4101.20.00 and substituting therefor the following Tariff No.

Tariff Description Export Levy Rate 4101.20.00 Whole unsplit hides and skins, of 50% or USD 0.32/kg a weight per skin not exceeding 8 whichever is higher kg.

when simply dried, 10 kg.

when dry salted, or 16 kg.

when fresh, wet salted or otherwise preserved (b)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4102.21.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (c)!by deleting the tariff description together with the rates of export levy corresponding to tariff number 4102.29.00 and substituting therefor the following Tariff No.

Tariff Description Export Levy Rate 4102.29.00 Other raw skins of sheep or lamb 50% or USD 0.32/kg (fresh, or salted, dried, limed, whichever is higher ! 124 Finance 2023 No.

4 pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared), without wool on, whether or not split, other than those excluded by Note (c) to Chapter 41 (d)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4103.20.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (e)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4103.30.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (f)! by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4103.90.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (g)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4104.19.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (h)!by deleting tariff number 4101.40.00 together with the corresponding tariff description and rate of export levy; (i)! by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4101.50.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (j)! by deleting the expression 80% or USD 0.55kg appearing in tariff no.

4301.60.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (k)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4301.30.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (l)! by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4302.30.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (m)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4101.90.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (n)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4102.10.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; 125 2023 Finance No.

4 ! (o)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4301.10.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (p)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4301.80.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (q)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4301.90.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (r)! by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4302.11.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (s)!by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4302.19.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (t)! by deleting the expression 80% or USD 0.55/kg appearing in tariff no.

4302.20.00 and substituting therefor the expression 50% or USD 0.32/kg whichever is higher; (u)!by deleting tariff number 8002.00.10 and substituting therefor the tariff number 8002.00.00; (v)!by deleting tariff number 8105.00.00 together with the corresponding tariff description and rate of export levy; (w)!by deleting tariff number 8107.30.00 appearing in the first column and substituting therefor tariff number 8112.61.00; (x)!by deleting tariff number 8109.30.00 together with the corresponding tariff description and rate of export levy; (y)!by deleting tariff number 8110.20.20 appearing in the first column and substituting therefor tariff number 8110.20.00; (z)! by deleting the tariff description together with the rate of export levy corresponding to tariff number 4101.40.00; (aa)! by inserting the following new tariff numbers together with corresponding tariff descriptions and rates of export levy in proper sequence Tariff no.

Tariff description Export levy rate 8106.10.00 Bismuth and articles thereof 20% including waste and scrap containing more than 99.99% of bismuth, by weight ! 126 Finance 2023 No.

4 8106.90.00 Other bismuth and articles thereof 20% including waste and scrap 8105 Cobalt mattes and other 20% intermediate products of cobalt metallurgy; cobalt and articles thereof, including waste and scrap 8109.31.00 Waste and scrap of zirconium 20% containing less than 1 part hafnium to 500 parts zirconium by weight 1703 Molasses resulting from the 20% of the customs value extraction or refining of sugar 73.

The Second Schedule to the Miscellaneous Fees Amendment of the and Levies Act, 2016, is amended Second Schedule (a)!in part A to No.

29 of 2016.

(i)! by deleting paragraph (x) and substituting therefor the following new paragraph (x) goods for official use by diplomatic and consular missions, the United Nations and its agencies, and institutions or organizations exempted under the Cap.

179.

Privileges and Immunities Act; (ii)! by deleting paragraph (xv) and substituting therefor the following new paragraph (xv) All goods and parts thereof of Chapter 88.

(iii)! by inserting the words All goods including material supplies at the beginning of paragraph (xxv); (iv) by inserting the following new paragraph immediately after paragraph(xv) (xva) any other aircraft spare parts including aircraft engines imported by aircraft operators or persons engaged in the business of aircraft maintenance upon recommendation by the competent authority responsible for civil aviation.

(v) in paragraph (xxvc) (b) by inserting the words or other manufacturing activities including 127 2023 Finance No.

4 ! refining immediately after the words human vaccines; (iv)! by inserting the following new paragraphs immediately after (xxvi) (xxvii) goods imported for official use by international and regional organizations that have bilateral or multilateral agreements with Kenya; and (xxviii) liquefied petroleum gas.

(xxix) the supply of denatured ethanol of tariff number 2207.20.00; (xxx) bioethanol vapour (BEV) stoves classified under HS Code 7321.12.00 (cooking appliances and plate (b)!in part B warmers for liquid fuel).

(i)! by deleting paragraph (ii) and substituting therefor the following new paragraph (ii) goods imported for official use by diplomatic and consular missions, United Nations and its agencies, and institutions or organizations exempted under the Cap.

179.

Privileges and Immunities Act; (ii)! by deleting paragraph (iii); (iii)!in paragraph (viiic)(b), by inserting the words or other manufacturing activities including refining immediately after the words human vaccines; (iv)!by inserting the words All goods including material supplies at the beginning of paragraph (ix); (v)! inserting the following new paragraphs immediately after paragraph (x) (xi) goods imported for official use by international and regional organizations that have bilateral or multilateral agreements with Kenya; ! 128 Finance 2023 No.

4 (xii) liquefied petroleum gas; and (xiii) all goods and parts thereof of Chapter 88.

(xiv) the supply of denatured ethanol of tariff number 2207.20.00; (xv) bioethanol vapour (BEV) stoves classified under HS Code 7321.12.00 (cooking appliances and plate warmers for liquid fuel); (xvi) any other aircraft spare parts including aircraft engines imported by aircraft operators or persons engaged in the business of aircraft maintenance upon recommendation by the competent authority responsible for civil aviation; 74.

The Miscellaneous Fees and Levies Act, 2016, is Insertion of new amended by inserting the following new schedule Third Schedule to immediately after the Second Schedule No.

29 of 2016.

THIRD SCHEDULE [s.

7A(1)] Tariff No.

Tariff description Export and investment promotion levy rate 2523.10.00 Cement Clinkers 17.5 % of the customs value 7207.11.00 Semi-finished 17.5 % of the customs products of iron or value non-alloy steel containing, by weight, <0.25% of carbon; of rectangular (including square) cross-section, the width measuring less than twice the thickness 7213.91.10 Bars and rods of iron 17.5 % of the customs or non-alloy steel, hot- value rolled, in irregularly wound coils of circular cross-section 129 2023 Finance No.

4 ! THIRD SCHEDULE [s.

7A(1)] Tariff No.

Tariff description Export and investment promotion levy rate measuring less than 14mm in diameter of cross section measuring less than 8 mm 7213.91.90 Bars and rods of iron 17.5 % of the customs or non-alloy steel, hot- value rolled, in irregularly wound coils of circular cross-section measuring less than 14mm in diameter; other 4804.11.00 Uncoated kraft paper 10% of the customs and paperboard, in value rolls or sheets; Kraft liner; Unbleached 4804.21.00 Sack kraft paper; 10% of the customs Unbleached value 4804.31.00 Other kraft paper and 10% of the customs paperboard weighing value 2 150 g/m or less: Unbleached Sacks and bags, 10% of the customs 4819.30.00 value having a base of a width of 40 cm or more 4819.40.00 Other sacks and bags, 10% of the customs including cones value PART VIIIMISCELLANEOUS 75.

The Betting, Gaming and Lotteries Act is amended Insertion of new by inserting the following new section immediately after section Cap.131.

section 69A Collection of taxes.

69AA.

The taxes under sections 29A, 44A, 55A and 59B shall be collected in accordance with the provisions of the Tax No.

29 of 2015.

Procedures Act, 2015.

! 130 Finance 2023 No.

4 76.

Section 7 of the Kenya Roads Board Act,1999 is Amendment of amended in subsection (1) by section 7 of No.

7 of 1999.

(a) deleting paragraph (g); (b) deleting the word eight appearing at the beginning of the paragraph and substituting therefor the word "five.

77.

The Kenya Roads Board Act,1999 is amended in Amendment of section 35 by inserting the following subsection section 35 of immediately after subsection (2) No.

7 of 1999.

(2A) The annual estimates shall be submitted together with a collated annual roads programme as provided for in section 19.

78.

The First Schedule to the Kenya Roads Board Act, Amendment of 1999 is amended by- the First Schedule to No.

(a) deleting paragraph 4; 7 of 1999 (b) deleting paragraph 5 and (c) deleting paragraph 6.

79.

Section 5 of the Kenya Revenue Authority Act, Amendment of 1995, is amended in subsection (2A), by deleting the words section 104 of for the better carrying out of its functions and No.

2 of 1995.

substituting therefor the words the staff of the Authority, general public and other jurisdictions.

80.

Section 13 of the Kenya Revenue Authority Act, Amendment to 1995, is amended Section 13 of No.

2 of 1995.

(a)!in subsection (1) by inserting the words and Deputy Commissioners immediately after the word Commissioners; (b) by deleting subsection (2).

81.

The First Schedule to the Kenya Revenue Amendment of the Authority Act, 1995 is amended by inserting the following First Schedule to new item immediately after item 12- No.

2 of 1995.

13.

The Alcoholic Drinks Act, 2010 82.

Section 25B of the Retirement Benefits Act, 1997 Amendment of is amended in subsection (1) by deleting the words sixty No.

3 of 1997 per cent appearing in paragraph (eb) and substituting therefor the words thirty three percent.

131 2023 Finance No.

4 ! 83.

Section 38 of the Retirement Benefits Act, 1997 is Amendment of amended by inserting the following new subsection section 38 of No.3 immediately after subsection (1)- of 1997 (1A) Subject to subsection (1) (b), where a fund is set up exclusively for the purpose of investing sharia complaint funds, the fund shall be exempted from the guidelines.

84.

The Employment Act, 2007, is amended by Insertion of new inserting the following new sections immediately after section of No.

11 section 31A of 2007 Affordable Housing 31B.(1)Notwithstanding the provisions Levy.

of section 3(2) (a), (b), (c) and (d) of the Act, each employee and employer shall pay a monthly levy to be known as the Affordable Housing Levy.

(2) The purpose of the Affordable Housing Levy shall be to provide funds for the development of affordable housing and associated social and physical infrastructure as well as the provision of affordable home financing to Kenyans.

(3) The Affordable Housing Levy shall not be used for any other purpose other than the development of affordable housing and associated social and physical infrastructure as well as the provision of affordable home financing to Kenyans.

(4) The monthly levy payable by the employer and employee shall be (a) one point five per centum of the employees gross monthly salary for the employee; (b) one point five per centum of the employees monthly gross salary for the employer.

Obligations of the 31C.

(1) An employer shall employer (a) deduct an employees monthly payment from the employees gross monthly salary; ! 132 Finance 2023 No.

4 (b) set aside the employers monthly payment for each employee; and (c) not later than nine working days after the end of the month in which the payments are due, remit an amount comprising the employee and the employers payment.

(2) An employer who fails to comply with this section shall be liable to payment of a penalty equivalent to two per cent of the unpaid funds for every month the same remains unpaid.

85.

Section 2 of the Alcoholic Drinks Act, 2010, is Amendment of amended by inserting the following definition in its proper section 2 of No.

4 alphabetical sequence of 2010 minimum input cost means input cost published by Kenya Revenue authority through excise regulations; 86.

Section 31 of the Alcoholic Drinks Control Act, Amendment of 2010, is amended in subsection (2) by inserting the section 31 of No.

following new paragraph immediately after paragraph (b)- 4 of 2010 (c) a person shall not sell, manufacture, pack or distribute alcoholic drinks at a price below the minimum input cost.

87.

Section 28 of the Unclaimed Financial Assets Act, Amendment of 2011, is amended in subsection (5), by inserting the words section 28 of No.

or such other person as the claimant may designate 40 of 2011.

immediately after the word claimant.

88.

The Statutory Instruments Act, 2013 is amended Amendment of by deleting the heading to Part V and substituting therefor section 20 No.23 of 2013 the following new heading PART V PURPOSE FOR REVIEW OF STATUTORY INSTRUMENTS 89.

The Statutory Instruments Act 2013, is amended Repeal of section by repealing section 21.

21 No.23 of 2013 90.

The Retirement Benefits (Deputy President and Repeal of section Designated State Officers) Act, 2015 is amended by 4 of No.8 of 2015.

repealing section 4.

133 2023 Finance No.

4 ! 91.

The Retirement Benefits (Deputy President and Insertion of Designated State Officers) Act, 2015 is amended by section 4A and 4B inserting the following new sections immediately after into No.8 of 2015.

section 4- Entitlements for 4A.

A person who person holding appointive or elective (a)!holds an appointive or elective position in office in the Government; and Government.

(b)!previously held a position to which pension and other benefits accrue under this Act, shall, upon retirement or ceasing to hold that office entitled under this Act, be paid- (i)! a monthly pension equal to eight per cent of the monthly salary of the entitled persons last monthly salary while in office; and (ii)!a lumpsum payment on retirement as calculated as a sum equal to one years salary paid for each term served in office.

Entitlement to 4B.

A person, who holds an parliamentary appointive or elective position for which pension.

benefits under this Act apply and is entitled to pension under the Parliamentary Pensions Act, shall in addition to the benefits and pension payable under this Act, be paid pension under section 8 of the Parliamentary Pensions Act.

92.

Section 5 of the Retirement Benefits (Deputy Amendment of President and Designated State Officers) Act, 2015 is section 5 of No.8 of 2015.

amended (a) in subsection (1) (f) by deleting the words and the entitled persons spouse and substituting therefor the words , the entitled persons spouse and the entitled persons child who is below eighteen years or is under twenty-five years of age and is undergoing a course of full time education, and in the case of a female child is not married or is not cohabiting with any person; ! 134 Finance 2023 No.

4 (b) by deleting subsection (2).

93.

Section 5A of the Retirement Benefits (Deputy Amendment of President and Designated State Officers) Act, 2015 is section 5A of No.

amended in paragraph (f) by deleting the words and the of 2015.

entitled persons spouse and substituting therefor the words ,the entitled persons spouse and the entitled persons child who is below eighteen years or is under twenty-five years of age and is undergoing a course of full time education, and in the case of a female child is not married or is not cohabiting with any person; 94.

Section 5B of the Retirement Benefits (Deputy Amendment of President and Designated State Officers) Act, 2015 is section 5B of No.

amended in paragraph (f) by deleting the words and the of 2015.

entitled persons spouse and substituting therefor the words ,the entitled persons spouse and the entitled persons child who is below eighteen years or is under twenty-five years of age and is undergoing a course of full time education, and in the case of a female child is not married or is not cohabiting with any person; 95.

Section 6 of the Retirement Benefits (Deputy Amendment of President and Designated State Officers) Act, 2015 is section 6 of No.

amended in paragraph (f) by deleting the words and the of 2015.

entitled persons spouse and substituting therefor the words ,the entitled persons spouse and the entitled persons child who is below eighteen years or is under twenty-five years of age and is undergoing a course of full time education, and in the case of a female child is not married or is not cohabiting with any person; 96.

Section 7 of the Retirement Benefits (Deputy Amendment of President and Designated State Officers) Act, 2015 is section 7 of No.

amended in paragraph (f) by deleting the words and the of 2015.

entitled persons spouse and substituting therefor the words ,the entitled persons spouse and the entitled persons child who is below eighteen years or is under twenty-five years of age and is undergoing a course of full time education, and in the case of a female child is not married or is not cohabiting with any person; 97.

The First Schedule to the Retirement Benefits (Deputy President and Designated State Officers) Act, 2015 is amended (a)!in paragraph (b) by inserting the words or one chief liaison officer immediately after the words one personal assistant; and 135 2023 Finance No.

4 ! (b)!in paragraph (c) by inserting the words or one assistant liaison officer immediately after the words one secretary.

98.

Section 13 of the Retirement Benefits (Deputy Amendment of President and Designated State Officers) Act, 2015 is section 13 of No.8 amended by inserting the following new sub-section of 2015.

immediately after sub-section (1C) (1D) The Clerk of the National Assembly in the case of a retired Speaker of the National Assembly and the Clerk of the Senate in the case of a retired Speaker of the Senate, shall prepare and submit the estimates under subsection (1)(b) to the Parliamentary Service Commission.

99.

Section 16 of the Retirement Benefits (Deputy Repeal of section President and Designated State Officers) Act, 2015 is 16 of No.8 of repealed.

2015.

100.

Section 4 of the Special Economic Zones Act, Amendment to 2015, is amended by deleting subsection 4 and substituting Section 4 of No.

therefor the following new subsection 16 of 2015.

(4) A special economic zone shall be a designated geographical area which may include both customs controlled area and non-customs controlled area where business enabling policies, integrated land uses and sector-appropriate on- site and off-site infrastructure and utilities shall be provided, or which has the potential to be developed, whether on a public, private or public-private partnership basis, where development of zone infrastructure and goods introduced in customs-controlled area are exempted from customs duties in accordance with customs laws.

101.

Section 6 of the Special Economic Zones Act, Amendment of 2015, is amended in paragraph (b) by section 6 of No.

(a)!deleting the word Kenya and substituting 16 of 2015 therefor the words the customs territory; (b)!inserting the following proviso Provided that (i) goods whose content originates from the customs territory shall be exempt from payment of import duties; ! 136 Finance 2023 No.

4 (ii) goods whose content partially originates from the customs territory shall pay import duties on the non-originating component subject to the customs procedures.

102.

Section 24 of the Export Processing Zones Act, Amendment of 1990, is amended by inserting the following proviso at the section 24 of Cap.

end of paragraph (b) 517 Provided that (i) goods whose content originates from the customs territory shall be exempt from payment of import duties; and (ii) goods whose content partially originates from the customs territory shall pay import duties on the non-originating component subject to customs procedures.

.