Miscellaneous Administrative Changes                                                                                       

The President of the Republic of Kenya assented to the new Finance Act, 2016 (the “Act”) on 13^th September, 2016. The new law introduces amendments to various pieces of legislation.

This insight summarizes the miscellaneous administrative changes introduced by the Act to the Kenya Deposit Insurance Act 2012, the Public Finance Management Act (Cap 412c) and the Tax Appeal Tribunal Act 2013, Laws of Kenya.

1. THE KENYA DEPOSIT INSURANCE ACT 2012

Kenya Bankers Association CEO to sit on KDIC Board – Change effective on 1^st January, 2017

The composition of the Board of Directors of the Kenya Deposit Insurance Corporation (KDIC) is enlarged to include the Chief Executive Officer of the Kenya Bankers Association or his representative, and five members appointed by the Cabinet Secretary by virtue of their knowledge each having at least ten years’ professional experience in banking, finance, insurance, commerce, law, accountancy or economics. The appointees of the Cabinet Secretary shall not be public officers or persons from a member Institution licensed by the Central Bank of Kenya (CBK).  Further, the Act directs that the powers of the CBK to appoint the KDIC as a sole receiver for any institution shall be exercised in consultation with the Cabinet Secretary.

2. THE PUBLIC FINANCE MANAGEMENT ACT (Cap 412c) (the “PFMA”)

Extension of Tenure for Board – Change effective on 1^st January, 2017

The PFMA is amended to extend the tenure of the members of the Public Sector Accounting Standards Board from the current one term of not more than three years to a term of three years renewable once for a further three years.

3. THE TAX APPEAL TRIBUNAL ACT, 2013 (the “TATA”)

Appointments to the Tribunal and Legal Representation – Change effective on 1^st January, 2017

The TATA is amended at section 7 by providing the qualifications of the Secretary of the Tribunal who shall be nominated by the Cabinet Secretary. The Secretary shall be knowledgeable in procedures of a tribunal and have a minimum of five years’ experience in finance, economics or legal practice. Further, the appointment of the clerk to the Tribunal shall be made by the Tribunal itself and not the Cabinet Secretary as is currently done. Section 25 of the TATA is also amended to empower advocates to appear on behalf of clients before the Tribunal. Previously only tax agents would represent any person before the Tribunal.

For further information please contact Jacqueline@cfllegal.com