Steep Penalties Announced by KRA in New Directive

Kenya Revenue Authority signage on a building
Kenya Revenue Authority signage on a building
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The Kenya Revenue Authority (KRA) on Tuesday, March 31, announced a 3% monthly penalty would be meted out on individuals and companies that failed to beat the deadline to pay due rates in Nairobi.

Following the appointment of the taxman as the principle agent responsible for collection of revenue in Nairobi County on March 13, the tax authority issued a notice urging county residents to clear any outstanding dues by March 31.

"Pay your land rates and single business permits by March 31, 2020, to avoid attracting an additional penalty of 3% per month.

"Kindly pay all the mandatory county dues to avoid enforcement actions thereafter, " reads a part of the statement published on major dailies.

The public notice sent out by Nairobi County Government and the Kenya Revenue Authority on March 31, 2020.
The public notice sent out by Nairobi County Government and the Kenya Revenue Authority on March 31, 2020.
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The revenue authority also urged county residents to clear land rates, parking fees, single business permits, building plan approvals, billboards, rental houses and stalls, market fees, health certificates and all mandatory county dues.

In a gazette notice issued on Friday March 13, Nairobi County Finance CEC Allan Igambi, announced that Nairobi County had appointed KRA as the principal agent for overall revenue collection for all county revenue, for a period of 24 months.

"All banking slips and transaction documents for payments made must be presented to the head of County Revenue or County Cash Office for issuance of official receipt," the notice further reads.

Individuals seeking to apply for new single business permits as well as those seeking to renew expired ones were advised to do so on the county's web portal.

The move came following the transfer of key of the functions to the national government on February 25.

Embattled Nairobi Governor Mike Sonko on Wednesday, March 18, officially handed over some of the functions of the County Government of Nairobi to the national government in a ceremony held at State House, Nairobi.

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Leaders present included President Uhuru Kenyatta, Attorney General Paul Kihara and Devolution Cabinet Secretary Eugene Wamalwa.

KRA Commissioner-General James Mburu was also present at the historic function, during which  he signed various documents to officially seal the transfer.

Speaking after the agreement was sealed, Uhuru announced the formation of the Nairobi Metropolitan Services (NMS) to take charge of the transferred functions.

Major-General Mohammed Abdallah Badi was named as the Director-General of the NMS deputised by Enosh Momanyi.

The president tasked the NMS with ensuring quality service delivery to Nairobians and eradicating corruption that he stated had permeated City Hall.

KRA's latest directive is the first official notice served by the new revenue collection principle agent for the county's capital following the transfer of functions.

Governor Mike Mbuvi Sonko and Devolution Cabinet Secretary Eugene Wamalwa in concurrence with H.E President Uhuru Kenyatta, signed an agreement, handing over functions of the Nairobi County Government to the National Government on Tuesday, February 25, 2020
Former Nairobi Governor Mike Mbuvi Sonko and Devolution Cabinet Secretary Eugene Wamalwa in concurrence with H.E President Uhuru Kenyatta, signed an agreement, handing over functions of the Nairobi County Government to the National Government on Tuesday, February 25, 2020
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