Kenya Revenue Authority Act

Section 1. Short title Section This Act may be cited as the Kenya Revenue Authority Act.

Section 2. Interpretation Section In this Act, unless the context otherwise requires— “Authority” means the Kenya Revenue Authority established by section 3 ; “Board” means the Board of Directors established by section 6 ; “Cabinet Secretary” means the Cabinet Secretary for the time being responsible for finance; “Chairperson” means the Chairperson of the Board ; "Commissioner" means a Commissioner appointed under section 13 (1); “financial year” means the period from 1st July of any year to 30th June of the following year; “functional head” deleted by ActNo. 4 of 2004, s. 65(b) ; “member” means a member of the Board of Directors and includes the Chairperson ; “revenue” means taxes, duties, fees, levies, charges, penalties, fines or other monies collected or imposed under the written laws set out in the First Schedule. [Act No. 5 of 1998 , s. 67, Act No. 4 of 2004 , s. 65.]

Section 3. Establishment ofAuthority Section 3(1) There is established an Authority to be known as the Kenya Revenue Authority . Section 3(2)(a) suing and being sued: Provided that any legal proceedings against the Authority arising from the performance of the functions or the exercise of any of the powers of the Authority under section 5 shall be deemed to be legal proceedings against the Government within the meaning of the Government Proceedings Act ( Cap. 40 ); Section 3(2)(b) taking, purchasing or otherwise acquiring, holding, charging or disposing of movable and immovable property; Section 3(2)(c) borrowing or lending money; Section 3(2)(d) doing or performing all other things or acts for the furtherance of the provisions of this Act, which may be lawfully done or performed by a body corporate. Section 3(3) Deleted by ActNo. 5 of 1998, s. 68(b). [Act No. 5 of 1998 , s. 68.]

Section 4. Seal of theAuthority Section 4(1) The seal of the Authority shall be authenticated by the signature of the Commissioner ("a Commissioner appointed under(1);") -General and the Secretary to the Board . Section 4(2) In the absence of the Commissioner ("a Commissioner appointed under(1);") -General, a Commissioner ("a Commissioner appointed under(1);") designated by him for the purpose may authenticate the seal in his place, and in the absence of the Secretary to the Board , the person for the time being performing the functions of the Secretary may authenticate the seal in his place. Section 4(3) Every document purporting to be an instrument issued by the Authority and to be sealed with the seal of the Authority authenticated in the manner provided by subsection (1) or (2) shall be deemed to be such an instrument and shall be received in evidence without further proof.

Section 5. Functions of theAuthority Section 5(1) The Authority shall, under the general supervision of the Cabinet Secretary , be an agency of the Government for the collection and receipt of all revenue . Section 5(2)(a) all provisions of the written laws set out in Part I of the First Schedule and for that purpose, to assess, collect and account for all revenues in accordance with those laws; Section 5(2)(a)(i) all provisions of the written laws set out in Part I of the First Schedule and for that purpose, to assess, collect and account for all revenues in accordance with those laws; Section 5(2)(a)(ii) the provisions of the written laws set out in Part II of the First Schedule relating to revenue and for that purpose to assess, collect and account for all revenues in accordance with those laws; Section 5(2)(b) advise the Government on all matters relating to the administration of, and the collection of revenue under the written laws or the specified provisions of the written laws set out in the First Schedule; and Section 5(2)(c) perform such other functions in relation to revenue as the Cabinet Secretary may direct. Section 5(2A) The Authority may establish an institution to p...

Section 5A. Rewards Section 5A(1) The Commissioner ("a Commissioner appointed under(1);") -General may, upon the recommendation of a Commissioner ("a Commissioner appointed under(1);") , reward any person for information leading to the identification or recovery of unassessed taxes or duties: Provided that this section shall not apply to any officer of the Authority . Section 5A(2)(a) in the case of information leading to the identification of unassessed duties or taxes, one per centum of the duties or taxes so identified or five hundred thousand shillings, whichever is the less; Section 5A(2)(b) in the case of information leading to the recovery of unassessed duties or taxes, five per centum of the taxes or duties so recovered or five million shillings, whichever is the less; and Section 5A(2)(c) in the case of information not specified in paragraph (a) and (b) leading to the enforcement of the tax laws, five hundred thousand shillings.

Section 6.Boardof Directors Section 6(1) There is established a Board of Directors which shall be the governing body of the Authority . Section 6(2)(a) a Chairperson to be appointed by the President; Section 6(2)(b) the Commissioner ("a Commissioner appointed under(1);") -General; Section 6(2)(c) the Principal Secretary in the Ministry responsible for finance or his representative; Section 6(2)(d) the Attorney-General or his representative; Section 6(2)(e) six other persons appointed by the Cabinet Secretary by virtue of their knowledge and experience in accountancy, commerce, law, taxation, business administration or public administration. Section 6(3) No person shall be appointed as the Chairperson of the Board or as a member of the Board under paragraph (e) of subsection (2) if such person is a public officer or has been a public officer within the immediately preceding twelve months. Section 6(4) Representatives of the members of the Board under paragraphs (c) and (d) of subsection (2) shall be persons with knowledge or experience in matters relating to tax policy or legislation. Section 6(5) Deleted by ActNo. 16 of 2014, s. 30 . Section 6(6)(a) the approval and review of the p...

Section 7. Tenure of office ofChairpersonand members Section 7(1)(a) shall hold office on such terms and conditions including remuneration as are specified in his instrument of appointment, and for a period not exceeding three years; and Section 7(1)(b) shall be eligible for re-appointment for one further term of three years. Section 7(2) A member of the Board , other than an ex officio member , may resign his office by written notification under his hand addressed to the Cabinet Secretary .

Section 8. Termination of appointment ofChairpersonand members Section for his inability to perform the functions of his office by reason of mental or physical infirmity;

Section 9. Disclosure of interest byChairpersonand members Section 9(1) A member of the Board who has a direct or indirect personal interest in a matter being considered or to be considered by the Board shall as soon as possible after the relevant facts concerning the matter have come to his knowledge disclose the nature of his interest to the Board . Section 9(2)(a) be present during any deliberations on the matter by the Board ; or Section 9(2)(b) take part in the decision of the Board on the matter. Section 9(3)(a) be present during the deliberations of the Board nor take part in the making of such determination by the Board ; or Section 9(3)(b) influence any other member to take part in the making of such determination by the Board .

Section 10. Meetings of theBoard Section 10(1) The provisions of the Second Schedule shall apply to the meetings of the Board and other matters provided for in that Schedule. Section 10(2) The Board may co-opt any person to participate in its deliberations, but a person so co-opted shall have no right to vote. Section 10(3) The Cabinet Secretary may, by notice in the Gazette , amend the Second Schedule.

Section 11.Commissioner-General Section 11(1) There shall be a Commissioner ("a Commissioner appointed under(1);") -General of the Authority who shall be appointed by the Cabinet Secretary upon the recommendation of the Board on such terms and conditions as are specified in his instrument of appointment. Section 11(2)(a) for the day-to-day operations of the Authority ; Section 11(2)(b) for the management of funds, property and affairs of the Authority ; and Section 11(2)(c) for the administration, organization and control of the staff of the Authority . Section 11(3)(a) misbehaviour in terms of the code of conduct and discipline prescribed under section 21 ; Section 11(3)(b) the Commissioner ("a Commissioner appointed under(1);") -General’s inability to perform the functions of his office by reason of mental or physical infirmity; or Section 11(3)(c) any other sufficient cause. Section 11(4) The Commissioner ("a Commissioner appointed under(1);") -General may, with the approval of the Board , by notice in the Gazette , delegate any of his powers or functions under this Act or any other written law to a Commissioner ("a Commissioner appointed under(1);") . [Act No. 4 of 2004 , s. 67...

Section 12. Secretary to theBoard Section 12(1) There shall be a Secretary to the Board who shall be appointed by the Board . Section 12(2) The Secretary shall be responsible for arranging the business of the Board ’s meetings, keeping records of the Board ’s meetings, keeping records of the proceedings of the Board , and shall perform such other duties as the Board may direct.

Section 13. Appointment of Commissioners and other officers Section 13(1) The Board shall appoint, to the service of the Authority , such Commissioners as may be deemed necessary. Section 13(1A) The Commissioner ("a Commissioner appointed under(1);") -General shall appoint Deputy Commissioners subject to the approval of the Board . Section 13(2) Deleted by ActNo. 4 of 2023, s. 80(b). Section 13(3) The Commissioner ("a Commissioner appointed under(1);") -General shall appoint all other members of staff as may be required by the Authority for efficient performance of its functions. Section 13(4) The terms and conditions of all persons employed by the Authority shall be determined by the Board . Section 13(5) Except as may otherwise be determined by the Board in any particular case, an officer referred to in subsection (1) , or in his absence the immediate deputy, shall be entitled to attend and participate in the deliberations of any meeting of the Board but shall have no right to vote. [Act No. 4 of 2004 , s. 68, Act No. 4 of 2023 , s. 80, Act No. 16 of 2024 , s. 3]

Section 14. Employees to be personally liable for wrongful acts or omissions Section is done or committed wilfully or dishonestly by such person;

Section 13A. Transfer of functions and merger of departments Section The Commissioner ("a Commissioner appointed under(1);") -General may, with the approval of the Cabinet Secretary , transfer the functions of departments of the Authority or merge departments of the Authority . [Act No. 4 of 2004 , s. 69.]

Section 15. Revenue to be paid into Consolidated Fund Section All revenues collected by, or due and payable to, the Authority under this Act shall be paid into the Consolidated Fund: Provided that all revenues collected by the Authority in respect of any fund established under an Act of Parliament shall be paid into that fund after deducting the expenses incurred by the Authority for the collection of such revenue . [Act No. 8 of 1996 , s. 60.]

Section 16. Funds of theAuthority Section 16(1)(a) such amount, not exceeding two percent of the revenue estimated in the financial estimates for each financial year to be collected by the Authority under this Act, as may be determined by the Cabinet Secretary in each financial year ; Section 16(1)(b) three percent of the revenue actually collected in each successive three-month period in the financial year in excess of the amount estimated to be collected in respect of that period; Section 16(1)(ba) any commission received by the Authority for collecting any revenue on behalf of a county government or government agency: Provided that such commission shall not exceed two per cent of the total revenue collected on behalf of the county government or government agency; Section 16(1)(c) loans and grants received by the Authority with the approval of the Cabinet Secretary ; and Section 16(1)(d) any other monies as may, with the approval of the Cabinet Secretary , be received by or made available to the Authority for the purpose of performing its functions. Section 16(2)(a) specified in subsection (1)(a) shall be payable to the Authority in equal monthly instalments on or before the begi...

Section 17. Estimates of income and expenditure of theAuthority Section 17(1) The Commissioner ("a Commissioner appointed under(1);") -General shall, not later than three months before the end of each financial year , prepare and submit to the Board for its approval, estimates of the income and expenditure of the Authority for the next ensuing financial year and may at any time before the end of each financial year , prepare and submit to the Board for approval any estimates supplementary to the estimates for that financial year . Section 17(2) No expenditure shall be made out of the funds of the Authority unless that expenditure is part of the expenditure approved by the Board according to the estimates for the financial year in which the expenditure is to be incurred or in the supplementary estimates for that year.

Section 18. Accounts, audit and annual reports Section 18(1) The Authority shall keep accounts and records of its transactions and affairs and shall ensure that all moneys received are properly brought to account, all payments out of its funds are correctly made and properly authorized and that adequate control is maintained over its property and liabilities the Authority may incur under this Act. Section 18(2) The annual accounts of the Authority shall be audited by the Auditor-General. Section 18(3)(a) financial statements of the Authority ; Section 18(3)(a)(i) financial statements of the Authority ; Section 18(3)(a)(ii) the Authority ’s performance indicators and any other related information; Section 18(3)(a)(iii) a report on the operations of the Authority ; and Section 18(3)(a)(iv) such other information as the Board may deem fit; and Section 18(3)(b) to the Auditor-General, the accounts of the Authority for the financial year ; and the annual report referred to in paragraph (a) . Section 18(4) The Auditor-General shall audit the accounts of the Authority within two months after he has received them and submit his report thereon to the Cabinet Secretary and to the Board . Sec...

Section 19. Internal audit and quarterly audit reports Section 19(1) In addition to any other functions assigned to him by the Board or the Commissioner ("a Commissioner appointed under(1);") -General, the head of internal audit shall be responsible for the internal audit of the Authority ’s accounts and shall submit to the Commissioner ("a Commissioner appointed under(1);") -General a report on the accounts in respect of every three months of a financial year . Section 19(2) The Commissioner ("a Commissioner appointed under(1);") -General shall submit every report referred to in subsection (1) to the Board for its consideration at the next meeting of the Board after he has received the report and shall also submit copies of the report to the Cabinet Secretary and the Controller and Auditor-General.

Section 15A. Appointment of agents Section 15A(1) The Commissioner ("a Commissioner appointed under(1);") may appoint a person registered under the Banking Act to act as an agent for revenue banking services through an agreement. Section 15A(2) Any person appointed under this section shall be required to transfer the funds to the designated Central Bank accounts within two days following the date of collection. Section 15A(3) A person who fails to transfer the funds in accordance with the provisions of subsection (2) shall be liable to a penalty equivalent to two per cent of the revenue collections not transferred and shall be compounded for every other day on the amount of revenue that is not transferred. Section 15A(4) The penalty under subsection (3) shall be treated as a tax debt due to the government and the enforcement measures for collection and recovery of tax shall apply. Section 15A(5)(a) system downtime that prevented the transfer of funds and the matter has been promptly reported to the Commissioner ("a Commissioner appointed under(1);") ; Section 15A(5)(b) notification to the person that he has been put under receivership or statutory management preventing transfer of...

Section 20. Exemption Section The Authority shall be exempted from the State Corporations Act ( Cap. 446 ).

Section 21. Regulations Section respecting the terms and conditions of service, including pensions, gratuities and other retirement benefits, of all members of staff of the Authority ;

Section 22. Vesting of assets and liabilities, subsisting contracts, pending proceedings Section 22(1) All property, except any such property as the Cabinet Secretary may determine, which immediately before the commencement of this Act was vested in the Government for the use of the Departments of Customs and Excise, Income Tax and Value Added Tax for purposes of the written laws set out in the First Schedule, shall on the commencement of this Act, and without further assurance, vest in the Authority subject to all interests, liabilities, charges, obligations and trusts affecting such property. Section 22(2) Except as otherwise provided in subsection (1) in relation to property, all contracts, debts, obligations and liabilities of the Government attributable to the Departments of Customs and Excise, Income Tax and Value Added Tax before the commencement of this Act shall remain vested in the Government and may be enforced by or against the Government. Section 22(3) Subject to section 2 , all legal proceedings and claims which before the commencement of this Act are pending in respect of revenue to which the written laws set out in the First Schedule apply shall be continued or enfo...

Section 23. Construction and modification of other written laws Section all references to the Commissioner ("a Commissioner appointed under(1);") of Customs and Excise, Commissioner ("a Commissioner appointed under(1);") of Income Tax or the Commissioner ("a Commissioner appointed under(1);") of Value Added Tax in any written law shall be construed as references to the Commissioner ("a Commissioner appointed under(1);") -General of the Authority ;

Section 24.[Deleted by ActNo. 29 of 2015, 2nd Sch]

Section 25.[Deleted by ActNo. 29 of 2015, 2nd Sch]

Section 20A. Limitation of actions Section it is commenced within three years after the act, neglect or default complained of;

Section 24A.[Deleted by ActNo. 29 of 2015, 2nd Sch]