New Bill Proposes Hefty Fine for License Non-Compliance

An image of Kenyan one thousand shilling notes in bundles
An image of Kenyan one thousand shilling notes in bundles
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Kenyans found culpable of contravening licensing laws and procedures will face a hefty penalty of Ksh1 million if a bill tabled in Parliament sails through.

Additionally, The County Licensing (Uniform Procedures) Bill, 2022 further outlines that this section of Kenyans risks a jail term of not more than six months or both if they violate the law which seeks to harmonise licensing procedures across county governments.

“A person who contravenes a provision of this Act commits an offence and is liable, on conviction to a fine not exceeding one million shillings or to imprisonment for a term not exceeding six months or to both,” the Bill reads in Part.

An aerial view of the business community in Eastleigh in Nairobi County
An aerial view of the business community in Eastleigh in Nairobi County
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STEPHEN MUDIARI

According to the bill's finer details, the counties will be required to have licensing bodies which charge uniform fees and apply the same for licensing procedures.

One may be considered to be in contravention of the law and liable for the penalties if the licensee fails to provide the service or business that was specified while they were applying for the license.

Additionally, one is required to comply with all applicable laws and the conditions for issuance of the license as stipulated by the County Government.

Further, one will also be deemed to have violated the law if they fail to provide the licensing authority with information concerning any change in its directorship or shareholding.

Failure to pay fees as may be prescribed by the licensing authority has also been listed as another offence.

Conclusively, the license holder will be required to maintain, and where required, submit to the licensing authority any information as may be necessary for the continued licensing.

According to Parliament, drafting of the Bill was necessitated by the need to maintain public confidence in the respective sectors under which the licence is issued. The piece of legislation has also been listed as essential to address the imposition of licensing fees hampering respective businesses and industries.

On Wednesday, April 3, MPs conducted public participation exercises across the counties to garner the public's view on the bill.

Some of the concerns raised were; multiple taxation, bureaucracy and overzealous regulation.
 

Parliament
National Assembly proceedings on February 21, 2024.
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National Assembly of Kenya