Legality of Kenyan Taxes
Following the promulgation of the new constitution on 27 August 2010, taxation is now subject to the laws therein.
- Only the national government may impose income tax; value-added tax; customs duties and other duties on import and export goods; and excise tax.
- An Act of Parliament may authorize the national government to impose any other tax or duty, except income tax; value-added tax; customs duties and other duties on import and export goods; and excise tax.
- A county may impose property rates; entertainment taxes; and any other tax that it is authorized to impose by an Act of Parliament.
- The national and county governments may impose charges for the services they provide.
- The taxation and other revenue-raising powers of a county shall not be exercised in a way that prejudices national economic policies, economic activities across county boundaries or the national mobility of goods, services, capital or labor.
- No tax or licensing fee may be imposed, waived or varied except as provided by legislation.
The Kenya Revenue Authority (KRA) was established by an Act of Parliament and became effective on 1st July 1995. The Authority is charged with the responsibility of collecting revenue on behalf of the Government of Kenya.
Acts on Taxes
- The Income Tax Act (Cap. 470).
- The Customs and Excise Act (Cap.472).
- The Value Added Tax Act (Cap.476).
- The Road Maintenance Levy Fund Act 1993 (No.9 of 1993).
- The Air Passenger Service Charge Act (Cap. 475).
- The Entertainment Tax Act (Cap. 479).
- The Traffic Act (Cap. 403).
- The Transport Licensing Act (Cap. 404).
- The Second Hand Motor Vehicle Purchase Tax Act (Cap. 484).
- The Widows and Children Pensions Act (Cap. 195).
- The Parliamentary Pensions Act (Cap.196).
- The Stamp Duty Act (Cap. 480).
- The Betting, Lotteries and Gaming Act (Cap.131).
- The Directorate of Civil Aviation Act (Cap.394).