[ REV 2023] [CAP.

469B]

ISO 9001:2015 CERTIFIED

TAX PROCEDURES ACT

CHAPTER 469B
REVISED EDITION, 2023

Notes: (1) This edition-

(a) includes the amendments contained in the Finance Act 2023

of 26th June 2023.

(b) has been prepared using the Tax Procedures Act, Revised
Edition 2022.

(2) In all cases references must be made to the actual text of the
principal and subsidiary legislation published by the Government
Printer and should the terms and text of this Act be at variance with
the legislation published by the Government Printer, the latter must
be followed.

Prepared for staff by:

Corporate Policy Division

Strategy Innovation and Risk Management Department

Times Tower Building

Haile Selassie Avenue P. O. Box 48240 – 00100 GPO Nairobi Kenya

Telephone No. 020281000

 ARRANGEMENT OF SECTIONS
PART I – PRELIMINARY
Section
1. Short title.
2. Objects and principles of the Act.
3. Interpretation.
PART II – ADMINISTRATION OF TAX LAWS
4. Functions and powers of the Commissioner.
5. Delegation.
6. Confidentiality.
6A. International tax agreements
6B. Common reporting standards obligations
7. Authorized officers to have powers of police officers.
PART III – TAX PAYERS
8. Registration of taxpayers.
9. Supply of information upon change in particulars.
10. Deregistration.
11. Personal identification number.
12. Issue of a PIN.
13. Use of a PIN.
14. Cancellation of a PIN.
15. Taxpayer's tax representative.
15A. Appointment of tax representative by non-resident person.
16. Liabilities and obligations of tax representatives.
17. Duties of appointed person.
18. Liability for tax payable by a company.
19. Application for a tax agent licence.
20. Licensing of tax agents.
21. Limitation on the performance of tax services for taxpayers.
22. Cancellation of a tax agent's licence.
PART IV – RECORD-KEEPING
23. Record-keeping.
23A Electronic tax invoice
PART V – TAX RETURNS
24. Submission of tax return.
24A. Duty to submit third party returns.
25. Extension of time to submit tax return.
26. Commissioner may require taxpayer to submit a tax return.
27. Tax return duly submitted.
PART VI – TAX ASSESSMENTS
28. Self-assessment.
29. Default assessment.
30. Advance assessment.
31. Amendment of assessments
PART VII – COLLECTION AND RECOVERY OF TAX AND REFUND
OF TAX
32. Tax as a debt due to the State.
32A. Mutual administrative assistance in the recovery or collection tax claims.
33. Extension of time to pay tax.
34. Priority of tax.
35. Order of payment.
36. Security for payment of tax.
37. Relief because of doubt or difficulty in recovery of tax (Repealed by Act No. 4 of 2023, s. 55).
37A. Repealed by Act No. 8 of 2021
37B. Commissioner to refrain from assessing tax for income earned outside Kenya.
37C. Commissioner to refrain from recovering penalties or interest from companies that list on the
growth segment.
37D Voluntary Tax Disclosure Programme
37E. Commissioner to refrain from recovering interest, penalties or fines
38. Late payment interest.
39. Recovery of unpaid tax by suit.
39A Penalty for failure to deduct or withhold tax
40. Security on property for unpaid tax
41. Distress orders.
42. Power to collect tax from person owing money to a taxpayer.
42A. Appointment of Value Added Tax withholding agent.
42B Appointment of Digital Service Tax Agent.
42C. Appointment of rental income tax agents
43. Preservation of funds.
44. Seizure and forfeiture of goods.
45. Departure prohibition order.
46. Transferred tax liabilities.
47. Offset or refund of overpaid tax
47A. Refund of tax paid in error
47B. Refund of tax paid on exempted or zero-rated supply
48. Erroneous refund of tax.
PART VIII — TAX DECISIONS, OBJECTIONS AND APPEALS
49. Statement of reasons.
50. Conclusiveness of tax decisions.
51. Objection to tax decision
52. Appeal of appealable decision to the Tribunal.
53. Appeals to High Court.
54. Appeals to Court of Appeal.
55. Settlement of disputes out of Court or Tribunal.
56. General provisions relating to objections and appeals.
57. Admissibility of evidence.
PART IX — ENFORCEMENT
58. Power to inspect goods, records, etc.
59. Production of records.
59A. Data management and reporting system.
60. Power to search and seize.
 61. Notice to appear before the Commissioner
PART X — RULINGS
62. Binding public rulings.
63. Making a public ruling.
64. Withdrawal of a public ruling.
65. Binding private rulings.
66. Refusing an application for a private ruling.
67. Making a private ruling.
68. Withdrawal of a private ruling.
69. Publication of Private Rulings (Repealed by Act No. 2 of 2020, Sch.)
PART XI — COMMUNICATIONS, FORMS AND NOTICES
70. Official languages.
71. Prescribed form.
72. Tax compliance certificate.
73. Manner of submitting documents to the Commissioner.
74. Service of notices by the Commissioner.
75. Application of electronic tax system.
76. Admissibility of documents produced electronically.
77. Due date for submission and payment.
78. Defect not to affect validity of tax assessments and other documents.
79. Rectification of mistakes.
PART XII — ADMINISTRATIVE PENALTIES AND OFFENCES
80. General provisions relating to administrative penalties and offences.
81. Penalties relating to registration or licensing.
82. Penalty for failing to keep documents.
83. Late submission penalty.
83A. Late payment penalty.
84. Tax shortfall penalty.
85. Tax avoidance penalty.
86. Penalty for failing to comply with electronic tax system.
87. Penalties for failure to appear before the Commissioner.
88. Penalty in relation to fraudulent claim for refund.
88A. Penalties for non-compliance with common reporting standards obligations.
89. General provisions relating to penalty.
90. Offences relating to registration or licensing.
91. Offences relating to PINs.
92. Offences by tax agent.
93. Failure to maintain documents.
94. Failure to submit tax return or other document.
95. Failure to pay tax.
96. False or misleading statements.
96A. Commissioner may seek intervention from relevant authorities
97. Fraud in relation to tax.
97A. Offence of impersonating an authorised officer.
98. Offences relating to recovery of tax.
99. Offences relating to enforcement powers.
100. Obstruction of authorised officer.
101. Aiding or abetting an offence.
102. Offences by officers and staff of the Authority.
103. Offences by employees, agents, and companies.
103A. Unauthorized access or improper use of computerized tax system.
103B. Interference with computerized tax system
104. Sanctions for offences.
105. Payment of tax on conviction.
106. Jurisdiction to try cases.
107. Authorised officer may appear on prosecution.
108. Tax to be paid despite prosecution.
109. Power of the Commissioner to compound offences.

PART XIII — MISCELLANEOUS PROVISIONS

110. Consequential amendments.
111. Protection of officers.
112. Regulations.
113. Transitional and saving.
SCHEDULES
FIRST SCHEDULE ----- Transactions for which a PIN is required
SECOND SCHEDULE — Consequential amendments.

CHAPTER 469B
TAX PROCEDURES ACT
[Date of assent: 15th December, 2015.]
[Date of commencement: 19th January, 2016.]

An ACT of Parliament to harmonise and consolidate the procedural rules for the
administration of tax laws in Kenya, and for connected proposes
[Act No. 29 of 2015, L.N. 12/2016, Act No. 38 of 2016, Act No. 15 of 2017, Act No. 10
of 2018, Act No. 23 of 2019, Act No. 2 of 2020, Act No. 8 of 2020 Act No. 8 of 2021,
Act No. 22 of 2022, Act No. 4 of 2023]

PART I — PRELIMINARY
1. Short title
This Act may be cited as the Tax Procedures Act, 2015.

2. Object and purpose of the Act

(1) The object and purpose of this Act is to provide uniform procedures for—

(a) consistency and efficiency in the administration of tax laws;

(b) facilitation of tax compliance by taxpayers; and
(c) effective and efficient collection of tax.
 (2) Unless a tax law specifies a procedure that is unique to the administration of a
tax thereunder, the procedures provided for under this Act shall apply.
(3) This Act shall be interpreted to promote the object of the Act.

3. Interpretation
In this Act, except where when the context otherwise requires—

"accounting officer” has the meaning assigned under the Public Finance
Management Act, (Cap. 412A);;

"advance assessment” means an advance assessment made by the Commissioner

under section 30;

"amended assessment” means an amended assessment made by the Commissioner

under section 31;
"appealable decision” means an objection decision and any other decision made
under a tax law other than—
(b) a tax decision; or
(c) a decision made in the course of making a tax decision;

“assessment” means a self-assessment, default assessment, advance assessment,

or amended assessment, and includes any other assessment made under a tax law;

“authorised officer”, in relation to a tax law, means the Commissioner or an officer

appointed by the Commissioner under the Kenya Revenue Authority Act; (Cap. 469)
"Authority” means the Kenya Revenue Authority established under the Kenya
Revenue Authority Act (Cap. 469);

“Cabinet Secretary” means the Cabinet Secretary for the time being responsible
for matters relating to finance;
“Commissioner” means the Commissioner-General appointed under the Kenya
Revenue Authority Act;

“company" means—
(a) a company as defined in the Companies Act (Cap. 486) or a corporate
body formed under any other written law, including a foreign law; or
(b) an association, whether incorporated or not, formed outside Kenya that
the Cabinet Secretary has, by order, declared to be a company for the
purposes of this Act;

“controlling member" has the meaning assigned to it in section 18(4)(b);

“default assessment" means a default assessment made by the Commissioner
under section 29;

“document” includes—
 (a) a book of account, record, paper, register, bank statement, receipt,
invoice, voucher, contract or agreement, tax return, Customs
declaration, or tax invoice; or
(b) any information or data stored on a mechanical or electronic data storage
device;
“due date” means the date by which taxes are due and payable as specified in the
respective tax laws or such other date as the Commissioner may specify in a notice;

“excise duty” means excise duty imposed under the Excise Duty Act;
“income tax” means income tax imposed under the Income Tax Act;
“international organisation” means an organisation with international
membership, scope or presence and the membership are sovereign powers or the
governments of sovereign powers;

“Land Registrar” means Chief Land Registrar, County Land Registrar and Land
Registrars appointed under section 12 and 13 of the Land Registration Act, (Cap.
300);

“late payment interest” means interest imposed under section 38;

“late submission penalty” means a penalty imposed under section 83;
“licensed person” means a person registered or licensed under a tax law;
“tax agent” means a person licensed as a tax agent under section 20;
“limited partnership” means—
(a) a limited liability partnership registered under the Limited Liability
Partnerships Act, (Cap. 30); or
(b) a foreign limited partnership within the meaning in the Partnerships Act,
(Cap. 29);
“objection decision” has the meaning in section 51(8);
“official language” means Kiswahili or English;
“penalty” means a penalty imposed under a tax law;
“person” includes an individual, company, partnership, limited partnership,
association of persons, trust, National Government, foreign government, political
subdivision of the National Government or foreign government, or an international
organisation;

“personal identification number” or “PIN” means the personal identification

number issued under section 12;

“political subdivision” in relation to a government, means a state, provincial,

county, local, or other government at a level lower than the national government;
“prescribed form” has the meaning assigned to it in section 71;
“refund decision” means a decision referred to in section 47(3);
 “relative", in relation to an individual, means—
(a) an ancestor, a descendant of any of the grandparents, or an adopted
child, of the individual;
(b) an ancestor, a descendant of any of the grandparents, or an adopted child
of a spouse of the individual; or
(c) the spouse of the individual or of any person specified in paragraph (a)
or (b);
“reporting period" means—
(a) for the income tax, the year of income or, when section 27 of the Income
Tax Act (Cap. 470) applies, the accounting period of the taxpayer;
(b) for withholding tax under the Income Tax Act (Cap. 470) the period for
which the deduction of tax relates;
(c) for Value Added Tax––
(i) for a registered person, each calendar month; or
(ii) for an importer, the time of the import;
(iii) for withholding tax under the Value Added Tax Act, (Cap.
476), the time for payment for the taxable supplies;
(d) for excise duty—
(i) for a licensed person, each calendar month; or
(ii) for an import of excisable goods, the time of import; or
(iii) in the case of an advanced assessment, the period stated in the
notice of assessment;
(e) for any other tax imposed under a tax law, the period for which the tax
is charged;
“self-assessment” means an assessment made by a taxpayer or his representative
under section 28;

”self-assessment return” means a self-assessment return submitted by a tax payer

or his representative in accordance with a tax law;

“spouse”, in relation to an individual, means an individual who is married to the

first-mentioned individual under any system of law;

“tax” means—
(a) a tax or penalty imposed under a tax law;
(b) an instalment tax imposed under section 12 of the Income Tax Act; or
(c) withholding tax;
“tax avoidance” means a transaction or a scheme designed to avoid liability to pay
tax under any tax law;

“Tax Compliance Certificate” means a certificate issued by the Commissioner if

satisfied that the person has complied with the tax law in respect of filing returns and
has paid all the tax due based on self-assessment or has made an arrangement with
the Commissioner to pay any tax due;
 “tax decision” means—
(a) an assessment;
(b) a determination under section 17(2) of the amount of tax payable or that
will become payable by a taxpayer;
(c) a determination of the amount that a tax representative, appointed
person, director or controlling member is liable for under section 15,
section 17 and section 18;
(d) a decision on an application by a self-assessment taxpayer under section
31(2);
(e) Deleted by Act No. 4 of 2023 s. 49(a)
(f) a decision under section 48 requiring repayment of a refund; or
(g) a demand for a penalty or late payment interest; [Act No. 4 of 2023 s.
49(b)]
“tax law” means—
(a) this Act;
(b) the Income Tax Act (Cap. 470), Value Added Tax Act (Cap. 476) and
Excise Duty Act (Cap. 472) the Miscellaneous Fees and Levies Act
(Cap. 469C); and
(c) any Regulations or other subsidiary legislation made under this Act or
the Income Tax Act (Cap. 470), Value Added Tax Act (Cap. 476),
Excise Duty Act (Cap. 472) and the Miscellaneous Fees and Levies Act
(Cap. 469C);
“tax representative”, in relation to a taxpayer, means a person who is the tax
representative of the taxpayer under section 15;

“tax return” means a return required to be submitted under a tax law and includes
the following—
(a) a statement of exempt income to be submitted under section 62 of the
Income Tax Act;
(b) a statement and declaration form specified in rule 9A of the Income Tax
(PAYE) Rules and rule 11(1) of the Income Tax (Withholding Tax)
Rules;

“taxpayer” means a person liable for tax under a tax law whether or not they have
accrued any tax liability in a tax period;

“Tribunal” means the Tax Appeals Tribunal established under the Tax Appeals
Tribunal Act (Cap. 469A);

“trust” means—
(a) a trust within the meaning in the Trustee Act; or
(b) an entity (other than a partnership, limited partnership, or company)
created outside Kenya that has legal characteristics substantially similar
to those of a trust settled or created in Kenya;
 “trustee” means a person recognized as trustee under the Trustee Act (Cap. 167)
and includes a person who owes a fiduciary responsibility to an entity treated as a
trust under paragraph (b) of the definition of “trust”;

“unpaid tax” means any tax that has not been paid by the due date or, if the
Commissioner has extended the due date under section 33, the extended due date, and
includes any late payment interest in respect of a tax liability;

“value added tax” means valued added tax imposed under the Value Added Tax
Act, (Cap. 476); and

“withholding tax” means tax that a person is required to withhold under the
Income Tax Act (Cap. 470) or the Value Added Tax Act (Cap. 476).
(2) For the purposes of this Act, the following are related persons—
(a) persons who are treated as related persons under section 13(8) of the Value
Added Tax Act; or
(b) an individual and a relative of the individual.
(3) For the purposes of enforcement and collection of tax—
(a) late payment interest, penalty, fines, or any other imposition under a tax law
shall be treated as tax; and
(b) the person liable for the amount specified in paragraph (a) shall be treated
as a taxpayer.
(4) When this Act applies in respect of a tax law, any term not defined in this Act has
the meaning assigned in that tax law.
[Act No. 38 of 2016, s. 32, Act No. 15 of 2017, s. 19, Act No. 10 of 2018, s. 34, Act No. 8
of 2021, s. 34, Act No. 4 of 2023 s. 49]

PART II — ADMINISTRATION OF TAX LAWS

4. Functions and powers of the Commissioner
(1) The Commissioner shall be responsible for—
(a) the control and collection of taxes;
(b) accounting for collected taxes; and
(c) subject to the direction and control of the Cabinet Secretary, for the general
administration of tax laws.
(2) The Commissioner shall appoint such authorised officers as may be necessary for
the administration of a tax law.
(3) An authorised officer shall enforce, and ensure due compliance with, the
provisions of the tax law, and shall make all due inquiries in relation thereto
(4) An authorised officer shall produce on demand such documents approved by the
Commissioner establishing the officer’s identity.
5. Delegation

(1) The Commissioner may, in relation to a tax law, delegate in writing to an

authorised officer the performance of any of the powers or functions of the Commissioner
under that tax law, other than the power of the Commissioner under section 4.
(2) The Commissioner may revoke, in writing, a delegated power or function at any
time and nothing in this section prevents the Commissioner from exercising a delegated
power or performing a delegated function.
(3) A decision made, and a notice or communication issued or signed, by an
authorised officer may be withdrawn or amended by the Commissioner or by that
authorised officer, and shall, for the purposes of the tax law to which it relates and until
it has been withdrawn, be deemed to have been made, issued or signed by the
Commissioner.

6. Confidentiality

(1) The Commissioner or an authorised person shall, in relation to the administration

of a tax law, protect the confidentiality of the documents or information obtained in the
course of administering the tax law.
(2) Despite subsection (1), the Commissioner or an authorised officer may disclose
documents or information obtained in the course of administering a tax law to—
(a) another authorised officer for the purposes of carrying out any duty arising
under a tax law;

(b) an authorised customs officer for the purposes of carrying out any duty
under a law related to customs;
(c) the Tribunal or a court to the extent necessary for the purposes of any
proceedings under a tax law;

(d) the Director-General of the Kenya National Bureau of Statistics for the
performance of the Director-General’s official duties;
(e) the Auditor-General for the performance of the Auditor-General’s official
duties;
(f) a competent authority of the government of a foreign country or an
international organization with which Kenya has entered into an agreement
which provides for the exchange of information to the extent permitted
under that agreement; or
(g) the Authority responsible for investigation of corruption and matters related
to the integrity of public officers;
(h) any other institution of the government of Kenya for the purposes of
performance of the duties of that institution;
(i) any other person with the written consent of the person to whom the
documents or information relate.
(3) Subsection (1) shall apply to a person receiving documents or information under
subsection (2) as if the person were an authorised officer.
 (4) In this section, “authorised officer” includes any person engaged by the Authority
in any capacity and includes a director or former director of the Authority, or a former
authorised officer or employee of the Authority.
[Act No. 15 of 2017, s. 20.]
6A International tax agreements
(1) Any multilateral agreements and treaties that have been entered into by or on behalf
of the Government of Kenya relating to international tax compliance and prevention of
evasion of tax or exchange of information on tax matters shall have effect in the manner
stipulated in such agreements or treaties.
(2) Notwithstanding any other provision of this Act or any other written law, the
information obtained pursuant to agreements specified under subsection (1) shall not be
disclosed except in accordance with the conditions specified in the agreements.
(3) Any multilateral agreement or treaty that has been entered into by or on behalf of
the Government of Kenya relating to mutual administrative assistance in the collection of
taxes shall have effect in the manner stipulated in such agreement or treaty. [Act No. 4 of
2023, s. 50]
[Act No. 8 of 2021, s. 35, Act No. 4 of 2023 s 50 ]
6B Common reporting standard obligations
(1) In this section—
“common reporting standard” means the reporting and due diligence standard for the
automatic exchange of financial account information;
“financial institution” means a custodial institution, a depository institution, an
investment entity or a specified insurance company; and
“Kenyan financial institution” means—
(a) any financial institution that is resident in Kenya but does not mean any branch
of that financial institution that is located outside Kenya; or
(b) any branch of a financial institution that is not resident in Kenya, if that branch
is located in Kenya.
(2) A reporting financial institution shall comply with the due diligence procedures
and record keeping requirements as set out in the common reporting standard Regulations
prescribed under subsection (6).
(3) A reporting financial institution shall identify reportable accounts as specified
by the common reporting standard Regulations prescribed under subsection (6) and file
with the Commissioner —
(a) an information return on reportable accounts held, managed or administered
by that reporting financial institution; or
(b) a return marked “nil” if no account held, managed or administered by that
reporting financial institution is identified as a reportable account.
(4) The date by which and the manner in which an information return or a ‘nil’ return
shall be filed with the Commissioner shall be as set out in the common reporting standard
Regulations prescribed under subsection (6).
 (5) Where a financial institution, intermediary, service provider, or any other person
enters into any arrangements or engages in a practice the main purpose or one of the main
purposes of which can reasonably be considered to be to avoid an obligation imposed
under this section or under Regulations made under this Act, the arrangement or practice
shall be deemed not have been entered into or engaged in and this section shall apply as
if the arrangement or practice had not been entered into or engaged in.
(6) The Cabinet Secretary may, by Regulations, prescribe common reporting
standards for the purposes of this Act.
[Act No. 8 of 2021, s. 35.]
7. Authorised officers to have powers of police officers

(1) For the purposes of administering a tax law, an authorised officer shall, in the
performance of that officer’s duties, have all the powers, rights, privileges and protection
of a police officer.
(2) Without prejudice to the generality of subsection (1), the authorised officer shall
have the power to enter and search any premises or vessels and seize, collect and detain
evidence and produce such evidence in any proceedings before a court of law or tax
appeals tribunal.
[Act No. 15 of 2017, s. 21.]

PART III — TAXPAYERS

8. Registration of taxpayers
(1) A person who—
(a) has accrued a tax liability or who expects to accrue a tax liability under the
Income Tax Act (Cap. 470) or the Value Added Tax Act (Cap. 476);
(b) expects to manufacture or import excisable goods; or
(c) expects to supply excisable services;
shall apply to the Commissioner to be registered.

(2) An application for registration under subsection (1) shall be—

(a) made in the prescribed form;
(b) accompanied by documents that the Commissioner may require, including
documents of identity; and
(c) made within thirty days of the applicant becoming liable for that tax.
(3) Where a person liable for a tax under a tax law is required or has the option to
register under that tax law, that person shall comply with the provisions of that tax law
and this Act regarding registration.
(4) The Commissioner shall register a person who has applied for registration if the
Commissioner is satisfied that the person is liable for tax under a tax law.
(5) When the Commissioner refuses to register a person who has applied for
registration, the Commissioner shall inform that person in writing within fourteen days
of the decision not to register that person.
(6) The Commissioner may use the information obtained under subsection (2) to
register or license the applicant under the provisions of any other tax law without
 requiring that applicant to separately apply to be registered or licensed under that other
tax law.
(7) If the Commissioner decides to register or license an applicant under subsection
(6), the Commissioner may require the applicant to provide additional information or
documents for the purposes of that other registration or licensing.
(8) The Commissioner may, on his or her own motion, register a person who was
required to apply for registration under subsection (1) but who has not applied for
registration.
(9) The Commissioner shall notify in writing a person registered under subsection
(8) of that person’s registration.
[Act No. 15 of 2017, s. 22.]

9. Supply of information upon change in particulars

Every person carrying on a business shall, within thirty days of the occurrence of a
change, notify the Commissioner of any changes—
(a) in the place of business, trading name and registered address;
(b) in the case of—
(i) an incorporated person, of the persons with share-holding of ten per
cent or more of the issued share capital;
(ii) a nominee ownership, to disclose the beneficial owner of the
shareholding;
(iii) a trust, the full identity and address details of trustees and
beneficiaries of the trust whether the entity is carrying out business
or not;
(iv) a partnership, the identity and address of all partners; or
(v) cessation or sale of the business, all relevant information regarding
liquidation or details of ownership.
[Act No. 22of 2022 s. 37]
10. Deregistration
(1) A person who ceases to be required to be registered for the purposes of a tax law
shall apply to the Commissioner for deregistration under that specific tax law.
(2) A registered person shall apply for deregistration under subsection (1)—

(a) in the prescribed form; and

(b) within thirty days of ceasing to be required to be registered under that tax
law.
(3) Where a tax law requires a registered person to apply for deregistration in addition
to the requirement under this section, that person shall also apply for deregistration in
accordance with the provision of that tax law.
(4) The Commissioner shall notify in writing a registered person of the deregistration
of that person if the Commissioner is satisfied that the person is no longer required to be
registered for the purpose of a tax law.
 (5) The Commissioner may, on his or her own motion and by notice in writing to a
person or a person’s tax representative, deregister the person when satisfied that the
person is eligible for deregistration, including when the person is a natural person who
has died, a company that has been liquidated, or any other person that has otherwise
ceased to exist.
(6) A person shall cease to be a registered person on the date of notification by the
Commissioner in relation to the deregistration.
(7) Where the Commissioner fails to respond to the application for deregistration
within six months, the applicant shall be deemed to be deregistered.
(8) Where the deregistration of a person requires the cancellation of that person’s
registration or licence under a tax law, that registration or license shall be cancelled on
the effective date of the deregistration.

11. Personal identification number

The Commissioner shall issue a number, to be known as a personal identification
number (“PIN”), to a person registered for the purposes of a tax law and that person shall
use the PIN as may be required under this Act.

12. Issue of a PIN

(1) The Commissioner shall issue a PIN to a person registered under section 8.
(2) A registered person shall use a PIN for the purposes of all tax laws and a registered
person shall be issued with only one PIN at any time.
(3) A person who has not been registered under section 8 but who requires a PIN for
the purposes of a transaction specified in the First Schedule may apply to the
Commissioner for a PIN.
(4) An application for a PIN under subsection (3) shall be—

(a) in the prescribed form; and

(b) accompanied by documents that the Commissioner may require, including

documents of identity or registration.
(5) The Commissioner shall issue a PIN to an applicant under subsection (3) if the
Commissioner is satisfied that the applicant requires a PIN for the purposes of a
transaction specified in the First Schedule.
(5A) The Commissioner may, upon receipt of an application made by or on behalf of
any person or class of persons, exempt such person or class of persons from the
requirement for a PIN for any of the transactions specified in the First Schedule.
(6) A PIN is issued to a person when the Commissioner notifies that person in writing
of the issuance of the PIN.
[Act No. 10 of 2018, s. 35, Act No. 23 of 2019, s. 27.]
13. Use of a PIN
(1) A person shall state his or her PIN—

(a) on any return, notice or other document submitted, lodged, or used for the
purposes of a tax law, or as otherwise required under a tax law; or

(b) on any documentation required for a transaction specified in the First

Schedule.
(2) Subject to subsection (3), one PIN shall be issued to each person and it shall not
be used by a person other than the person to whom it was issued.
(3) The PIN of a person may be used by a tax agent when—
(a) the person has given written permission to the tax agent to use the PIN; and
(b) the tax agent uses the PIN only in respect of the tax affairs of the person.

14. Cancellation of a PIN

(1) A person issued with a PIN under section 12(3) but who is not registered under
section 8 shall notify the Commissioner in writing when that person no longer requires
a PIN for the purposes of a transaction specified in the First Schedule.
(2) The Commissioner shall, by notice in writing, cancel the PIN of a person when
satisfied that—
(a) the person has been deregistered under section 10;
(b) the person is required to notify the Commissioner under subsection
(1) but has failed to do so;
(c) the person has notified the Commissioner under subsection (1);
(d) a PIN has been issued to the person under an identity
that is not the person's true identity; or
(e) the person had been previously issued with a PIN that is still in force.

(3) The Commissioner may, at any time and in writing, cancel a PIN issued to a
person and issue the person with a new PIN.

15. Taxpayer's tax representative

(1) A person is the tax representative of another person for the purposes of this Act
or a tax law, in the case of—
(a) an individual under a legal disability, if that person is the guardian or other
legal representative who receives or is entitled to receive income on behalf,
or for the benefit, of the individual;
(b) a company within paragraph (a) of the definition in section 3, if that person
is the chief executive officer, managing director, company secretary,
treasurer, trustee or a resident director or similar officer of the company
acting or purporting to act in such a position;
(c) an association of persons, if that person is responsible for accounting for the
receipt or payment of moneys or funds on behalf of the association;
(d) a partnership or limited partnership, if that person is a partner in the
partnership or a manager of the partnership responsible for accounting for
the receipt or payment of moneys or funds on behalf of the partnership;
(e) a trust (other than the estate of a deceased taxpayer), if that person is a
trustee of the trust;
 (f) the National Government, or a county government, the judiciary and the
Parliamentary Service Commission if that person is the accounting officer;
(g) a company within paragraph (b) of the definition in section 3, a foreign
government, political subdivision of a foreign government, or international
organisation, if that person is responsible for accounting for the receipt or
payment of moneys or funds in Kenya on behalf of the company, foreign
government, political subdivision of the foreign government, or
international organisation;
(h) a taxpayer to whom section 17 applies, if that person is the person appointed
in respect of the taxpayer under that section;
(i) in the case of a non-resident person, if that person is controlling the non-
resident person's affairs in Kenya, including a manager of a business of that
non-resident person; or
(j) any person (including a person referred to in paragraphs (a) to (j)), if that
person is the agent or representative of the person as provided for under a
tax law or specified by the Commissioner, by notice in writing to the agent
or representative.
(2) In this section—
“individual under a legal disability” includes a minor or an individual who is
unable to comply with the requirements of a tax law because he or she is impaired by
a physical or mental disability;

"non-resident person” means a person who is not a resident for the purpose of a
tax law and includes a partnership or trust settled or formed outside Kenya;
"resident” has the meaning assigned to it under the Income Tax Act; and
"resident director” means a director who is resident.

15A Appointment of tax representative by non-resident person

(1) In a case where a non-resident person with no fixed place of business in Kenya
is required to register under a tax law, the non- resident person shall appoint a tax
representative in Kenya in writing.
(2) Where a person required to appoint a tax representative in accordance with sub
section (1) fails to do so, the Commissioner may appoint a tax representative for that
person, and the tax representative so appointed shall have the duties and obligations
specified under section 15.
(3) The registration of the tax representative shall be in the name of the non-resident
person being represented.
(4) A person may be a tax representative for more than one non-resident person, in
which case the person shall have a separate registration for each non-resident person.
(5) The Commissioner shall issue a PIN to the tax representative.
[Act No. 38 of 2016, s. 33, Act No. 15 of 2017, s. 23.]
16. Liabilities and obligations of tax representatives

(1) A tax representative of a taxpayer shall be responsible for performing any duty
or obligation imposed by a tax law on the taxpayer, including the submission of returns
and the payment of a tax.
(2) Despite the provisions of this Act, if a tax law requires a tax representative to
perform a duty or an obligation in respect of the taxpayer, that tax representative shall
comply with the requirements of that other tax law in addition to complying with the
provisions of this Act.
(3) Where a taxpayer has more than one tax representative, each tax representative
shall be responsible for the tax obligation for which the tax representative has been
appointed.
(4) Where a tax representative pays a tax on behalf of a taxpayer with the authority
of that taxpayer, that tax representative shall be indemnified by the taxpayer in respect
of that payment.
(5) Except as provided under a tax law and subject to subsection (6), any tax that is
payable by a tax representative of a taxpayer under this section shall be recoverable from
the tax representative only to the extent of the income or assets of the taxpayer that are
in the possession or under the control of the tax representative.
(6) Subject to subsection (7), a tax representative shall be personally liable for the
payment of any tax due by the tax representative in that capacity if, during the period
when the amount remains unpaid, the tax representative—
(a) alienates, charges, or disposes of any monies received or accrued in respect
of which the tax is payable; or

(b) disposes of or parts with any monies or funds belonging to the taxpayer that
are in the possession of the tax representative or which come to the tax
representative after the tax is payable, when such tax could legally have been
paid from or out of such monies or funds.
(7) A tax representative shall not be personally liable for a tax under subsection (6)
if--
(a) the monies were paid by the tax representative on behalf of a taxpayer and
the amount paid has priority, in law or equity, over the tax payable by the
taxpayer; or

(b) at the time the monies were paid, the tax representative did not know, and
6. could not reasonably be expected to know, of the taxpayer’s tax liability.
(8) This section does not relieve a taxpayer from performing any obligation imposed
on the taxpayer under a tax law that the tax representative of the taxpayer has failed to
perform.
(9) A reference in this section to a tax liability of a taxpayer includes any penalty or
late payment interest payable in respect of the liability.
[Act No. 15 of 2017, s. 24. Act No. 10 of 2018, s. 36]
17. Duties of appointed person
(1) An administrator, personal representative, executor of a will, trustee-in-
bankruptcy, receiver, or liquidator (referred to as the “appointed person”) who has been
appointed to administer, manage, liquidate, or wind up the affairs of a taxpayer, including
a deceased taxpayer, shall notify the Commissioner, in writing, of the appointment within
fifteen days of the date of the appointment.
(2) The Commissioner shall notify an appointed person in writing of the amount of
tax that is payable or will become payable by the taxpayer whose assets are under the
control of the appointed person within two months of the Commissioner receiving a
notification under subsection (1).
(3) Subject to subsection (4), an appointed person shall—

(a) not dispose of an asset of the taxpayer whose assets are under the control of
the appointed person without prior approval of the Commissioner until the
appointed person has been notified under subsection (2) or the two-month
period specified in subsection (2) has expired without the Commissioner
notifying the appointed person of the tax payable;
(b) set aside the amount notified by the Commissioner under subsection (2) out
of the proceeds of sale of an asset, or a lesser amount as is subsequently
agreed to by the Commissioner; and
(c) be personally liable to the extent of the amount required to be set aside for
the tax payable by the taxpayer who owned the asset.
(4) Subsection (3) shall not prevent an appointed person from paying the following
in priority to the amount notified under subsection (2)—
(a) a debt that has priority, in law or equity, over the tax referred to in the notice
served under subsection (2); or
(b) the expenses properly incurred by the appointed person in the capacity as
such, including the appointed person’s remuneration.
(5) Where there is more than one appointed person in respect of a taxpayer, the
obligations and liabilities under this section shall apply jointly and severally to both
appointed persons but may be discharged by any one of them.
(6) A reference in this section to a tax liability of a taxpayer includes any penalty or
late payment interest payable in respect of the liability.
[Act No. 38 of 2016, s. 34, Act No. 15 of 2017, s. 25.]

18. Liability for tax payable by a company

(1) Subject to subsection (2), where an arrangement has been entered into by any
director, general manager, company secretary, or other senior officer or controlling
member of the company with the intention or effect of rendering a company unable to
satisfy a current or future tax liability under a tax law, every person who was a director
or controlling member of the company when the arrangement was entered into shall be
jointly and severally liable for the tax liability of the company.
(2) A director, general manager, company secretary, or other senior officer or
controlling member of a company shall not be liable under subsection (1) for the tax
liability of the company if that director, general manager, company secretary, or other
 senior officer or controlling member did not derive a financial or other benefit from the
arrangement and if—
(a) the director, general manager, company secretary, or other senior officer or
controlling member notified in writing the company of his or her opposition
to the arrangement on becoming aware of the arrangement and notified in
writing the Commissioner of the arrangement; or

(b) at the time the arrangement was entered into, that director, general manager,
company secretary, or other senior officer or controlling member was not
involved in the executive management of the company and had no
knowledge of and could not reasonably have been expected to know of the
arrangement; and

(c) deleted by Act No. 17 of 2017, s. 26(a).

(3) A reference in this section to a tax liability of a taxpayer includes any penalty or
late payment interest payable in respect of the liability.
(4) In this section—
“arrangement” means any contract, agreement, plan or understanding, or an act,
whether express or implied and whether or not enforceable in legal proceedings which
is contrary to the provisions of a tax law;

"controlling member”, in relation to a company, means a member who

beneficially holds, directly or indirectly, either alone or together with a related person
or persons—
(a) fifty per cent or more of the voting rights attaching to membership
interests in the company;
(b) fifty per cent or more of the rights to dividends attaching to membership
interests in the company; or
(c) fifty per cent or more of the rights to capital attaching to membership
interests in the company;
"member”, in relation to a company, means a shareholder or any other person
with a membership interest in the company;
"membership interest”, in relation to a company, means a share or other
ownership interest in the company; and
"private company” has the same meaning assigned to it in the Companies Act
(Cap. 486).
[Act No. 15 of 2017, s. 26]

19. Application for tax agent licence

(1) An individual or a partnership may apply to the Commissioner for a licence as a
tax agent.
(2) An application under subsection (1) shall be in the prescribed form and
accompanied by the prescribed fee.
(3) An applicant shall, in addition to the requirements set out in subsections (1) and
(2), be required to be recommended for registration by the Tax Agents Committee.
 [Act No. 38 of 2016, s. 35.]

20. Licensing of tax agents

(1) The Commissioner shall issue a licence to an applicant under section 19 if the
applicant is a fit and proper person to prepare tax returns, notices of objection, or
otherwise transact business with the Commissioner under a tax law on behalf of a
taxpayer.
(2) The Commissioner shall issue a licence to a partnership under section 19 if---

(a) a partner in the partnership or an employee of the partnership is a fit and

proper person to prepare tax returns, notices of objection and transact
business with the Commissioner on behalf of a taxpayer; and
(b) every partner in the partnership is of good character and integrity.

(3) The Regulations under this Act may provide for guidelines for determining
whether or not a person is a fit and proper person to prepare tax returns, notices of
objection, or transact business with the Commissioner on behalf of taxpayers.
(4) The licence issued to a tax agent shall be valid until it is cancelled under section
22.
(5) The Commissioner shall notify in writing an applicant under section 19 of the
decision on the application.
(6) The Commissioner may from time to time, publish, a list of persons issued with
licenses to act or operate as tax agents.

21. Limitation on the performance of tax services for taxpayers

(1) A person, other than a tax agent, shall not—

(a) represent another person as that other person's tax agent; or
(b) offer assistance to another person for a reward in respect of that other
person's rights or obligations under a tax law.
(2) Subsection (1) (b) shall not apply to a legal practitioner acting in the ordinary
course of the person's profession.

22. Cancellation of tax agent's licence

(1) A tax agent who ceases to carry on business as a tax agent shall notify the
Commissioner in writing at least seven days before ceasing to carry on business as a tax
agent.
(2) A tax agent may apply in writing to the Commissioner to cancel the licence.

(3) The Commissioner shall cancel the licence of a tax agent if—
(a) a tax return prepared and filed by the tax agent is false in any material
particular, unless the tax agent satisfies the Commissioner that the
falsification was not due to any wilful or negligent conduct of the tax agent;
(b) the tax agent ceases to satisfy the conditions for licensing as a tax agent;
(c) the tax agent has ceased to carry on business as a tax agent.
 (4) The Commissioner shall notify a tax agent in writing of the cancellation of the
licence.
(5) The cancellation of the licence of a tax agent shall take effect on—
(a) the date the tax agent ceases to carry on business as a tax agent; or
(b) sixty days after the tax agent has been notified by the Commissioner of the
cancellation of the tax agent's licence, whichever is the earlier.
[Act No. 38 of 2016, s. 36.]

PART IV — RECORD-KEEPING
23. Record-keeping

(1) A person shall—

(a) maintain any document required under a tax law, in either of the official
languages;
(b) maintain any document required under a tax law so as to enable the person's
tax liability to be readily ascertained; and
7.
(c) subject to subsection (3), retain the document for a period of five years from
the end of the reporting period to which it relates or such shorter period as
may be specified in a tax law.
(2) The unit of currency in books of account, records, paper registers, tax returns or
tax invoices shall be in Kenya shillings.
(2A) Despite subsection (2), the unit of currency in books of account, records, paper
registers, tax returns or tax invoices in respect of a non-resident person carrying on
business through a digital marketplace shall be in convertible foreign currency as may
be approved by the Commissioner.
(2B) The provisions of subsection (2) shall not apply to a non-resident person who
files returns and makes payments through a resident tax representative or non-resident
person with a permanent establishment.
(3) When, at the end of the period specified in subsection (1)(c), a document—
(a) relates to an amended assessment, the person shall retain the document until
the period specified in section 31(7) has expired; or
(b) is necessary for a proceeding commenced before the end of the five-year
period, the person shall retain the document until all proceedings have been
completed.
(3A) A trustee resident in Kenya who administers a trust registered in Kenya or outside
Kenya shall maintain and avail to the Commissioner records required under a tax law,
whether the income generated is subject to tax in Kenya or not. [Act No. 4 of 2023, s. 51]
(4) When a document referred to subsection (1) is not in an official language, the
Commissioner may, by notice in writing, require the person required to keep the
document to provide, at the person's expense, a translation into an official language by a
translator approved by the Commissioner by the date specified in the notice.
(5) Despite anything in any tax law, the Regulations may provide for a simplified
system of record-keeping for small businesses.
 [Act No. 10 of 2021, s. 36, Act No. 4 of 2023 s. 51]
23A Electronic tax invoice
(1) The Commissioner may establish an electronic system through which electronic
tax invoices may be issued and records of stocks kept for the purposes of this Act.
(2) A person who carries on business shall—
(a) Issue an electronic tax invoice through the system established under subsection
(1); and
(b) Maintain a record of stocks in the system established under subsection (1).
(3) Where an electronic tax invoice required to ascertain tax liability is issued by a
resident person or the permanent establishment of a non-resident person, that invoice
shall be generated through the system established under subsection (1).
(4) The electronic tax invoice referred to in subsection (3) may exclude emoluments,
imports, investment allowances, interest, airline passenger ticketing and similar
payments.
(5) The Commissioner may, by notice in the Gazette, exempt a person from the
requirements of this section.
(Act No 4 of 2023 s. 52)

PART V — TAX RETURNS

24. Submission of tax returns

(1) A person required to submit a tax return under a tax law shall submit the return
in the approved form and in the manner prescribed by the Commissioner.
(2) The Commissioner shall not be bound by a tax return or information provided
by, or on behalf of, a taxpayer and the Commissioner may assess a taxpayer's tax liability
using any information available to the Commissioner.

24A. Duty to submit third party returns

A person shall, upon being required to do so by the Commissioner, furnish the
Commissioner with returns showing such information, in such form and manner and
within such time as the Commissioner may prescribe.
[Act No. 38 of 2016, s. 37.]

25. Extension of time to submit tax return

(1) A person required to submit 'a tax return under a tax law may apply in writing to
the Commissioner for an extension of time to submit the return.
(2) An application under subsection (1) shall be made at least-
(a) fifteen days before the due date in the case of a monthly return; or
(b) thirty days before the due date in the case of an annual return.
(3) The Commissioner may grant an application under this section if satisfied that
there is reasonable cause and shall notify the applicant accordingly at least five days
before the due date:
 Provided that-
(a) where no notification is received under this subsection, the application shall
be deemed to have been granted;
(b) only one extension may be granted to an applicant in respect of a tax period.

(4) The grant of an extension under this section shall not alter the date for payment
of any tax due (referred to as the "original due date") under the return as specified in the
tax law under which the return has been made.
(5) The provision of section 83 relating to penalties for late submission of returns
shall not apply where an extension to submit a return has been granted under this section.
[Act No. 10 of 2018, s. 37.]

26. Commissioner may require taxpayer to submit a tax return

(1) This section shall apply where, during a reporting period—
(a) bankruptcy, winding up or liquidation proceedings have been instituted
against a taxpayer;
(b) the Commissioner has reason to believe that a taxpayer is about to leave
Kenya permanently; or
(c) a taxpayer has ceased, or the Commissioner has reason to believe that a
taxpayer will cease, carrying on any business in Kenya; or
(d) a taxpayer has died.
(2) The Commissioner may at any time during a reporting period, by notice in
writing, require—
(a) the taxpayer or the taxpayer's tax representative to submit a tax return for
the reporting period by the date specified in the notice being a date that may
be before the date that the return for the reporting period would otherwise
be due; and
(b) pay any tax due in relation to the return.
(3) Where a taxpayer is subject to more than one tax, this section shall apply
separately for each tax.

27. Tax return duly submitted

A tax return purported to have been submitted by or on behalf of a taxpayer by another
person shall be treated as having been submitted by the taxpayer or with the taxpayer's
authority unless the contrary is proved.

PART VI — TAX ASSESSMENTS

28. Self-assessment
(1) A taxpayer who has submitted a self-assessment return in the prescribed form for
a reporting period shall be treated as having made an assessment of the amount of tax
payable (including a nil amount) for the reporting period to which the return relates being
the amount set out in the return.
(2) If a taxpayer liable for income tax has submitted a self-assessment return in the
prescribed form for a year of income and the taxpayer has a deficit for the year, the
 taxpayer shall be treated as having made an assessment of the amount of the deficit for
the year being the amount set out in the return.
(3) If a registered person has submitted a self-assessment return in the approved form
for a tax period and the taxpayer's total input tax for the period exceeds the taxpayer's
output tax for the period, the registered person shall be treated as having made an
assessment of the amount of the excess input tax for the period being that amount set out
in the return.
(4) A tax return in the approved form completed and submitted electronically by a
taxpayer shall be a self-assessment return despite—
(a) the form containing pre-entered information provided by the
Commissioner; or
(b) the tax payable being computed electronically as information is being
entered into the form.

29. Default assessment

(1) Where a taxpayer has failed to submit a tax return for a reporting period in
accordance with the provisions of a tax law, the Commissioner may, based on such
information as may be available and to the best of his or her judgement, make an
assessment (referred to as a "default assessment") of—
(a) the amount of the deficit in the case of a deficit carried forward under the
Income Tax Act (Cap. 470) for the period;

(b) the amount of the excess in the case of an excess of input tax carried forward
under the Value Added Tax Act (Cap. 476), for the period; or

(c) the tax (including a nil amount) payable by the taxpayer for the period in
any other case.
(2) The Commissioner shall notify in writing a taxpayer assessed under subsection
(1) of the assessment and the Commissioner shall specify—
(a) the amount assessed as tax or the amount of a deficit or excess of input tax
carried forward, as the case may be;
(b) the amount assessed as late submission penalty and any late payment
penalty payable in respect of the tax, deficit or excess input assessed;
(c) the amount of any late payment interest payable in respect of the tax
assessed;
(d) the reporting period to which the assessment relates;
(e) the due date for payment of the tax, penalty, and interest being a date that is
not less than 30 days from the date of service of the notice; and
(f) the manner of objecting to the assessment.
(3) A written notification by the Commissioner of an assessment under this section
shall not alter the due date (referred to as the "original due date") for payment of the tax
payable under the assessment as determined under the tax law imposing the tax, and any
late payment penalty or late payment interest shall remain payable based on the original
due date.
 (4) This section shall not apply for the purposes of a tax that is not collected by
assessment.
(5) Subject to subsection (6), an assessment under subsection (1) shall not be made
after five years immediately following the last date of the reporting period to which the
assessment relates.
(6) Subsection (5) shall not apply in the case of gross or wilful neglect, evasion or
fraud by a taxpayer.
30. Advance assessment

(1) Subject to subsection (2), the Commissioner may, based on the available
information and to the best of his or her judgement, make an assessment (referred to as
an "advance assessment") of the tax payable by a taxpayer specified in section 26 for a
reporting period.
(2) The Commissioner shall make an advance assessment of a taxpayer if the
taxpayer has not submitted a return for the reporting period.
6.
(3) An advance assessment—
(a) may be made before the date on which the taxpayer's return for the period
is due; and

(b) shall be made in accordance with the tax law in force at the date the
assessment is made.
(4) The Commissioner shall notify in writing a taxpayer assessed under subsection
(1) of the advance assessment and specify—
(a) the amount of tax assessed;
(b) the amount of any penalty payable in respect of the tax assessed;
(c) the reporting period to which the assessment relates;
(d) the due date for payment of the tax and penalty; and
(e) the manner of objecting to the assessment.
(5) An advance assessment may be amended under section 31 so that the taxpayer is
assessed in respect of the whole of the reporting period to which the advance assessment
relates.
(6) Despite the provisions of this section, a taxpayer shall submit a tax return as
required by this Act or the relevant tax law in relation to an advance assessment of tax
by the Commissioner.
31. Amendment of assessments
(1) Subject to this section, the Commissioner may amend an assessment (referred to
in this section as the “original assessment") by making alterations or additions, from the
available information and to the best of the Commissioner's judgement, to the original
assessment of a taxpayer for a reporting period to ensure that—
(a) in the case of a deficit carried forward under the Income Tax Act (Cap. 470),
the taxpayer is assessed in respect of the correct amount of the deficit
carried forward for the reporting period;
 (b) in the case of an excess amount of input tax under the Value Added Tax Act
Cap. 476), the taxpayer is assessed in respect of the correct amount of the
excess input tax carried forward for the reporting period; or
(c) in any other case, the taxpayer is liable for the correct amount of tax payable
in respect of the reporting period to which the original assessment relates.
(2) A taxpayer who has made a self-assessment may apply to the Commissioner,
within the period specified in subsection (4)(b)(i), to make an amendment to the
taxpayer's self-assessment.
(3) Where an amended self-assessment return has been submitted under subsection
(2), the Commissioner may accept or reject the amended self-assessment return and
where he rejects, he shall furnish the taxpayer with the reasons for such rejection within
thirty days of receiving the application.
(4) The Commissioner may amend an assessment—

(a) in the case of gross or wilful neglect, evasion, or fraud by, or on behalf of,
the taxpayer, at any time; or
(b) in any other case, within five years of—
(i) for a self-assessment, the date that the self-assessment taxpayer
submitted the self-assessment return to which the self-assessment
relates; or
(ii) for any other assessment, the date the Commissioner notified the
taxpayer of the assessment.
Provided that in the case of value added tax, the input tax shall be allowable for a
deduction within six months after the end of the tax period in which the supply or
importation occurred. [Act No. 22 of 2022, s. 38]
(5) Despite subsection (4)(b)(i) the Commissioner shall make an amended
assessment on an application of a self-assessment taxpayer under subsection (2) if the
application was submitted within the time specified in subsection (4)(b)(i).
(6) Where an assessment has been amended, the Commissioner may further amend
the assessment—
(a) five years after—
(i) for a self-assessment, the date the taxpayer submitted the self-
assessment return to which the self-assessment relates; or
(ii) for any other assessment, the date the Commissioner served notice of
the original assessment on the taxpayer; or
(b) one year after the Commissioner served notice of the amended assessment
on the taxpayer, whichever is the later.
(7) In any case to which subsection (6)(b) applies, the Commissioner shall only
amend the alterations or additions made in the amended assessment to the original
assessment.
(8) When the Commissioner has made an amended assessment, he or she shall notify
the taxpayer in writing of the amended assessment and specify—
(a) the amount assessed as tax or the deficit or excess input tax carried forward,
as the case may be;
 (b) any amount assessed as late payment penalty payable in respect of the tax
assessed;
(c) any amount of late payment interest payable in respect of the tax assessed;
(d) the reporting period to which the assessment relates;
(e) the due date for payment of any tax, penalty or interest being a date that is
not less than thirty days from the date of the taxpayer received the notice;
and
(f) the manner of objecting to the assessment.
(9) Despite any notification to a taxpayer under this section, the due date for the
payment of the tax payable under assessment (referred to as the "original due date') shall
not be altered and the late payment penalty and late payment interest shall also remain
payable based on the original due date.
[Act No. 10 of 2018, s. 38, Act No. 22 of 2022, s. 38, Act No. 4 of 2023, s. 53]

PART VII— COLLECTION AND RECOVERY OF TAX

AND REFUND OF TAX

32. Tax as a debt due to the State

(1) A tax payable by a person under a tax law shall be a debt due to the Government
and shall be payable to the Commissioner.
(2) A taxpayer who is required to pay a tax electronically under a tax law or section
75 of this Act shall pay the tax electronically unless he or she is authorized in writing
by the Commissioner to use another method of payment.

32A. Mutual administrative assistance in the recovery or collection tax claims

(1) The Commissioner may recover or collect a tax claim pursuant to an
international tax agreement contemplated in section 6A (3).
(2) The recovery of the tax claim under subsection (1), shall be in response to a
request by the competent authority of a party to the international tax agreement.
(3) The request under subsection (2) shall be in respect of a tax claim which forms
the subject of the international tax agreement permitting its enforcement in the
requesting party and, unless otherwise agreed between the parties, which is not
contested:
Provided that where the tax claim is against a person who is not a resident of the
requesting state, this section shall only apply, unless otherwise agreed between the parties
to the international tax agreement, where the claim may no longer be contested.
(4) The Commissioner, in respect of a request under subsection (2)—
(a) May apply for an order under section 43(3); and
(b) Shall issue to the person who is alleged to be liable to pay the tax a notice
requiring that person to state, within the period specified in the notice, whether
that person admits liability for the amount or a lesser amount.
(5) The request under subsection (2) shall—
(a) be in the prescribed form;
 (b) be accompanied by a tax claim issued by the requesting party in the form
provided for by the relevant law of that requesting party;
(c) Indicate the amount of the tax due;
(d) Indicate whether liability for the amount is contested under the laws of the
requesting party;
(e) Indicate, where liability for the amount is contested, whether the requesting
party believes that the purpose of the dispute is to delay or frustrate the
collection of the amount alleged to be due; and
(f) Indicate whether there is a risk of the person who is alleged to be liable to pay
the tax due, dissipating or concealing assets.
(6) Where the person who is alleged to be liable to pay the tax due admits liability,
the Commissioner may issue a notice requiring that person to pay the amount for which
the person has admitted liability, on a date specified in the notice.
(7) Where the person who is alleged to be liable to pay the tax due contests
liability, the Commissioner shall, after consulting the requesting party, determine
whether—
(a)The liability for the amount due is not disputed in terms of the relevant laws of
the requesting state;
(b) despite the liability for the tax due being contested, the purpose of the dispute
is to delay or frustrate the collection of the tax due; or
(c)There is a risk of the person who is alleged to be liable to pay the tax due,
dissipating or concealing assets, and the Commissioner may then issue a
notice requiring that person to pay the tax due or amount specified in the
notice, on a date specified in the notice.
(8) If the person fails to comply with the notice under subsection (6), the
Commissioner may commence proceedings for the recovery of the tax
claim.
(9) The steps taken to assist the requesting party shall not affect the right of the
person who is alleged to be liable to pay the tax due to have the liability for the tax
determined in accordance with the Laws of Kenya.
(10) Where the Commissioner recovers or collects the tax due to the requesting
party, the Commissioner shall deposit the amount into a dedicated account in the Central
Bank of Kenya after which the amount shall be remitted to an account specified by the
requesting party.
[Act No.4 of 2023 s. 54]

33. Extension of time to pay tax

(1) A taxpayer may apply in writing to the Commissioner for an extension of time
to pay a tax due under a tax law.
(2) When a taxpayer applies for an extension the Commissioner may, if the
Commissioner is satisfied that there is reasonable cause—
(a) grant the taxpayer an extension of time for payment of the tax; or
(b) require the taxpayer to pay the tax in such instalments as the Commissioner
may determine.
 (3) The Commissioner shall notify the taxpayer in writing of the decision regarding
the application for extension of time, within 30 days of receiving the application for
extension of time.
(4) Where a taxpayer who has been permitted to pay a tax by instalments under
subsection (2) defaults in the payment of an instalment, the whole balance of the tax
outstanding at the time of default shall become immediately payable.
(5) Despite being granted an extension of time to pay a tax or permission to pay a
tax due by instalments by the Commissioner, a taxpayer shall be liable for any late
payment interest arising from the original date the tax was due for payment.
[Act No. 38 of 2016, s. 38.]
34. Priority of tax
(1) The following amounts shall be held in trust for the Government by the person
receiving or withholding the amount—
(a) the value added tax payable on taxable supplies made by the person (net of
any deduction for input tax allowed) when the person is a registered person
under the Value Added Tax Act, (Cap. 476);
(b) the excise duty payable on the removal of excisable goods from the person's
factory or the supply of excisable services by the person when the person is
a licensed person under the Excise Duty Act (Cap. 472);
(c) withholding tax; and
(d) an amount that a payer is required to pay under a notice issued under section
41(2).
(2) If the person referred to in subsection (1) is liquidated or is declared bankrupt,
the amount referred to in subsection (1) shall not form part of the estate of the person in
liquidation or bankruptcy and shall be paid to the Commissioner before any distribution
of property is made.
(3) Despite the provision of any other written law, the withholding tax deducted by
a person—
(a) shall not be subject to attachment in respect of any debt or liability of that
person;
(b) shall be a first charge on the payment or amount from which the tax is
withheld or deducted; and
(c) shall be deducted prior to any other deduction that the person may be
required to make from the payment or amount under an order of any court.

35. Order of payment

(1) When a taxpayer is liable to pay a penalty or a late payment interest in relation
to a tax liability and the taxpayer makes a payment that is less than the total amount of
tax, penalty and interest due, the amount paid shall be applied in the following order—
(a) firstly in payment of the tax liability;
(b) secondly in payment of penalty; and
 (c) finally the balance remaining shall be applied against any late payment
interest.
(2) When a taxpayer faces more than one tax liability at the time a payment is made,
the payment shall be applied against the tax liabilities in the order in which the tax
liabilities arose.
(3) Where the interest payable under this section accrues, the aggregate interest
payable shall not exceed the principal tax liability.
36. Security for payment of tax
The Commissioner may, for the purposes of securing the payment of any tax due or
which shall become due, require a person to furnish a security in such manner and in
such amount as the Commissioner may prescribe.

37. Repealed by Act. No. 4 of 2023 s.55

37A Repealed by Act. No. 8 of 2021 s. 38].

37B Commissioner to refrain from assessing tax for income earned outside Kenya
(1) Notwithstanding any other provision of this Act, the Commissioner shall refrain
from assessing or recovering taxes, penalties or interest in respect of any year of income
ending on or before the 31' December, 2017, and from following up on the sources of
income under the amnesty where-
(a) that income has been declared for the year 2017 by a person earning taxable
income outside Kenya;
(b) the returns and accounts for the year 2017 are submitted on or before the
30th June, 2019; and
(c) the funds declared voluntarily have been transferred back to Kenya.
(2) This section shall not apply in respect of any tax where the person who should
have paid the tax-
(a) has been assessed in respect of the tax or any matter relating to the tax; or
(b) is under audit, investigation or is a party to ongoing litigation in respect of
the undisclosed income or any matter relating to the undisclosed income.
(3) Where no funds have been transferred within the period of the amnesty, there
shall be a five-year period for remittance but a penalty of ten percent shall be levied on
the remittance.
(4) The funds transferred under the amnesty shall be exempt from the provisions of
Proceeds of Crime and Anti-Money Laundering Act, 2009 or any other Act relating to
reporting and investigation of financial transactions, to the extent of the source of the
funds excluding funds derived from proceeds of terrorism, poaching and drug trafficking.
[Act No. 38 of 2016, s. 39(b), Act No. 15 of 2017, s.27, Act No. 10 of 2018, s.39]
37C Commissioner to refrain from recovering penalties or interest from companies that
list on the growth segment.
(1) Notwithstanding any other provision of this Act, the Commissioner shall refrain
from recovering penalties or interest from a company that lists on the growth segment of
 a securities exchange in Kenya, in respect of any year of income prior to the date of listing
where the company makes full disclosure of its past income, assets and liabilities for the
two years immediately preceding the date of listing:
Provided that the principal tax shall be paid in full.
(2) This section shall not apply in respect of any tax where the person who should
have paid the tax—
(a) has been assessed in respect of the tax or any matter relating to the tax; or
(b) is under audit or investigation in respect of the undisclosed income or any matter
relating to the undisclosed income.
(3) Notwithstanding subsection (1), a company that delists from the exchange in
which it is listed before the expiry of five years from the date of listing shall be assessed
for all taxes, penalties or interest for the years it was in operation prior to listing.
(4) The provisions of subsection (1) shall cease to apply after three years from the
commencement of this section.
[Act No. 23 of 2019, s. 28.]
37D Voluntary Tax Disclosure Programme.
(1) There is established a programme to be known as the Voluntary Tax Disclosure
Programme which shall be for a period of three years with effect from the 1st January,
2021.
(2) For purpose of this section, “voluntary tax disclosure programme” means a
programme where a person discloses the person’s tax liabilities to the Commissioner for
the purpose of being granted relief of penalties and interest on the tax disclosed.
(3) A person with a tax liability may apply to the Commissioner for relief in the
prescribed form with respect to tax liabilities that accrued within a period of five years
prior to the 1st July, 2020.
(4) A person granted relief under this section shall not be prosecuted with respect to
the tax liability disclosed under this section and shall be granted —
(a) where the disclosure is made and tax liability paid in the first year of the
programme, a full remission of the interest and penalty;
(bi) where the disclosure is made and tax liability paid in the second year of
the programme, remission of fifty per cent of the interest and penalty; and
(c) where the disclosure is made and tax liability paid in the final year of the
programme, remission of twenty-five percent of the interest and penalty.
(5) An application under subsection (3) shall be voluntary and disclose all material
facts.
(6) Where the Commissioner is satisfied with the facts disclosed in the application
under subsection (3), the Commissioner shall grant the relief applied for:
Provided that the relief shall not result in the payment of a refund to the person.
(7) Where the Commissioner grants relief under subsection (6), the Commissioner
shall enter into an agreement with the person setting out the terms of payment of the tax
 liability and the period within which the payment shall be made which shall not exceed
one year from the date of the agreement.
(8) Where a person fails to meet the terms of the agreement under subsection (7), that
person shall be liable to pay the full interest and penalty that had been remitted under the
agreement.
(9) A person granted relief under this section shall not seek any other remedy
including the right to appeal with respect to the taxes, penalties and interest remitted by
the Commissioner.
(10) Where, before the expiry of the agreement between the Commissioner and the
person, the Commissioner establishes that the person failed to disclose a material fact in
respect of the relief granted under this section, the Commissioner may—
(a) withdraw any relief granted;
(b) assess and collect any balance of the tax liability;
or
(c) commence prosecution under section 80.
(11) A person aggrieved by a decision of the Commissioner under subsection (10)
may appeal against the decision.
(12) This section shall not apply to a person if the person—
(a) is under audit, investigation or is a party to ongoing litigation in respect
of the tax liability or any matter relating to the tax liability; or
(b) has been notified of a pending audit or investigation by the
Commissioner.
(13) The disclosure of a tax liability under this section shall be confidential.
[Act No. 8 of 2020, s. 18.]

37E. Commissioner to refrain from recovering interest, penalties or fines

(1) Notwithstanding any other provision of this Act, the Commissioner shall refrain
from recovering penalties or interest on tax debt where a person had paid all the principal
tax due before the 31st December, 2022.
(2) Where all the principal tax due had not been paid before the 31st December,
2022, a person shall apply to the Commissioner for an amnesty of interest or penalties on
the unpaid tax, and propose a payment plan for the outstanding amount.
(3) For the purposes of subsection (2)—
(a) The amnesty shall be on interest or penalties on the unpaid tax that have
accrued up to the 31st December, 2022;
(b) The amnesty shall only be granted once if the person—
(i) Applies for amnesty and pays all the outstanding principal taxes not
later than the 30th June 2024;
(ii) Does not incur a further tax debt; and
(iii) Signs a commitment letter for the settlement of all outstanding
taxes that the person may owe.
 (4) Despite subsection (2), any amount of principal tax as at 31st December, 2022
that remains unpaid on the 30th June, 2024, shall attract interest and penalties
for which no amnesty shall be granted under this section.
(5) Despite subsection (1) the Commissioner shall not remit, in whole or in part,
any penalty or interest payable by a person, imposed under section 85.
(Act No. 4 of 2023 s 56)
38. Late payment interest

(1) Subject to subsection (2), a person who fails to pay a tax on or before the due
date for the payment of the tax shall be liable for late payment interest at a rate equal to
one per cent per month or part of a month on the amount unpaid for the period
commencing on the date the tax was due and ending on the date the tax is paid.
(2) If it is found that the principal amount or part of the principal amount was not
payable, the late payment interest paid by a person under subsection (1) shall be refunded
to that person to the extent that the principal amount to which the interest relates is found
not to have been payable.
(3) The late payment interest payable under this section shall be computed as simple
interest.
(4) The late payment interest payable under this section shall be in addition to any
late payment penalty or sanction imposed under Part XII in respect of the same act or
omission.
(5) The late payment interest shall be payable to the Commissioner and shall be
treated as a tax payable by the person liable for the interest.
(6) Where the Commissioner notifies a person of the person's outstanding tax liability
under a tax law or this Act and that person pays the outstanding tax in full (including late
payment interest payable up to the date of the notification) within the time specified in
the notification, a late payment interest shall not accrue for the period between the date
of notification and the date of payment.
(7) A late payment interest payable by a person—

(a) in respect of withholding tax payable by the person; or

(b) in respect of an amount referred to in section 16(5) or (6), 17(3)(c), 18(1) or
(2), 42(3), 43(9) or 46, payable by the person, shall be borne personally by
the person and shall not be recoverable from any other person.
(8) The accrued late payment interest shall not, in aggregate, exceed the principal tax
liability.

39. Recovery of unpaid tax by suit

(1) Despite any other written law for the time being in force, the Commissioner may
recover an unpaid tax as a civil debt due to the Government and, where the amount of
unpaid tax does not exceed one hundred thousand shillings, the debt shall be recoverable
summarily.
(2) In any suit for the recovery of an unpaid tax, the production of a certificate signed
by the Commissioner stating—
(a) the name and address of the person who is the defendant in the suit; and
 (b) the amount of tax and late payment interest (if any) due by the person,
shall be conclusive evidence that the amount stated on the certificate is due from that
person.

39A Penalty for failure to deduct or withhold tax.

Where a person who is required under a tax law to deduct or withhold tax and
remit the tax to the Commissioner fails to do so, the provisions of this Act relating to the
collection and recovery of tax, and the payment of penalties and interest thereon, shall
apply to the collection and recovery of that tax not deducted or withheld as if it were tax
due and payable by that person and the due date for the payment shall be the date on
which the amount of tax should have been remitted to the Commissioner.
[Act No. 23 of 2019, s. 29.]

40. Security on property for unpaid tax

(1) Where a taxpayer, being the owner of property in Kenya, fails to pay a tax by the
due date, the Commissioner may notify the Registrar in writing that the property, to the
extent of the taxpayer’s interest in the property, shall be the subject of a security for the
unpaid tax specified in the notification:
Provided that the Commissioner shall, within seven days from the date of the
notification to the Registrar, by notice in writing inform the taxpayer and any other
person who may have an interest in the property about the notification.
(2) Where the Registrar has been notified by the Commissioner under subsection (1),
the Registrar shall, without levying or charging a fee, register the Commissioner’s
notification as if it were an instrument of restraint on the disposal, mortgage on, or charge,
as the case may be, the property specified in the notification.
(3) A registration under subsection (2) shall, subject to any prior restraint on disposal,
mortgage or charge, operate as a legal restraint on the disposal, mortgage, or charge on,
the property to secure the amount of the unpaid tax, and any prior restraint shall supersede
the Commissioner’s notification.
(4) The Commissioner shall, upon the payment of the whole of the amount of unpaid
tax secured under this section, direct the Registrar in writing to cancel the notification
made under subsection (2), and the Registrar shall, without levying or charging a fee,
record the cancellation of the notification and the notification shall cease to apply.
(5) Where the taxpayer fails to pay the tax liability described in the notification under
subsection (1) within two months after receipt of the notification, the Commissioner or
authorised officer may, at the cost of the taxpayer, dispose of the property that is the
subject of the restraint on disposal, mortgage or charge, by public auction or private treaty,
or as provided for under the relevant Act for the recovery of the tax:
Provided that where a plan has been agreed between the taxpayer and the
Commissioner, the liability shall be settled within the agreed payment plan before
the notification by the Commissioner is lifted.
(6) Subject to section 34, where the property is subject to a prior restraint, that prior
restraint shall have priority if the property is disposed of under subsection (5).
(7) For the purpose of this section—
“property” means land or building, aircraft, ship, motor vehicle, or any other property
which the Commissioner may deem sufficient to serve as security for unpaid taxes;
 “Registrar” includes—
(a) the Land Registrar defined in section 3 of this Act;
(b) the Registrar of Ships appointed under section 14 of the Kenya Maritime
Authority Act (Cap. 370);
(c) the Director-General of the Kenya Civil Aviation Authority appointed under
section 19 of the Civil Aviation Act (Cap. 394);
(d) the Director-General of the National Transport and Safety Authority appointed
under section 15 of the National Transport and Safety Authority Act (Cap. 404);
or
(e) any other person who the Commissioner is satisfied has authority to hold property
sufficient to serve as security for unpaid taxes;
“relevant Act” includes the Kenya Maritime Authority Act (Cap. 370), Merchant
Shipping Act (Cap. 389), Civil Aviation Act (Cap. 394), Land Registration Act
(Cap.300), Land Act (Cap. 280), National Transport and Safety Act (Cap. 404), or any
other Act that provides for the registration of property.
[Act No. 22 of 2022,s. 39]
41. Distress orders
(1) The Commissioner or an authorised officer may issue an order (referred to as a
"distress order"), in writing, for the recovery of an unpaid tax by distress and sale of the
movable property of a taxpayer.
(2) A distress order shall specify—
(a) the taxpayer against whose property the order is issued;
(b) the amount of the unpaid tax liability;
(c) the property against which the distress proceedings are to be executed; and
(d) the location of the property against which the distress proceedings are to be
executed.
(3) For the purposes of executing a distress order, the Commissioner or authorised
officer may—
(a) at any time, enter any house or premises described in the distress order to
secure the property that is subject to the proceedings;
(b) at the cost of the taxpayer, engage such persons as the Commissioner
considers necessary to assist in the execution of the distress order; and
(c) require a police officer to be present while the distress order is being
executed.
(4) A police officer to whom subsection (3)(c) applies shall comply with the
requirement to be present when the distress order is being executed.
(5) The property that is the subject of the distress order—

(a) shall be identified by attaching a notice stating the property has been
impounded for failure to comply with a tax obligation; and
(b) shall be kept at the premises where the distress is executed or at any other
place that the Commissioner or authorised officer may consider appropriate,
at the cost of the taxpayer.
 (6) When the taxpayer does not pay the tax liability described in the distress order,
together with the costs of the distress proceedings—
(a) in the case of perishable goods, within the period that the Commissioner or
authorised officer notifies the taxpayer in writing as reasonable having
regard to the condition of the goods; or
(b) in the case of other personal property, within ten days after the property has
been secured by the Commissioner or authorised officer under subsection
(5), the property that is the subject of the
distress order may be sold by public auction or private treaty as the Commissioner or
authorised officer may direct.
(7) The Commissioner or an authorised officer shall apply the proceeds of sale of the
property that is the subject of the distress order towards the cost of taking, keeping, and
selling the property with the balance, if any, applied in the following order—
(a) in payment of the unpaid tax due by the taxpayer;
(b) the remainder of the proceeds, if any, shall be paid to the taxpayer.
(8) When the proceeds of disposal of the property that is the subject of the distress
order is less than the total of the taxpayer's unpaid tax and the cost of taking, keeping
and selling the property, the Commissioner may initiate proceedings to recover the
shortfall.
(9) For the purpose of subsection (8), the unpaid amount of the cost of taking,
keeping and selling the property that is the subject of the distress order shall be treated
as a tax payable by the taxpayer.
42. Power to collect tax from person owing money to a taxpayer

(1) This section applies when a taxpayer is, or will become liable to pay a tax and-
(a) the tax is unpaid tax; or
(b) the Commissioner has reasonable grounds to believe that the taxpayer will
not pay the tax by the due date for the payment of the tax.
(2) The Commissioner may, in respect of the taxpayer and by notice in writing,
require a person (referred to as the "an agent")—
(a) who owes or may subsequently owe money to the taxpayer;
(b) who holds or may subsequently hold money, for or on account of, the
taxpayer;
(c) who holds or may subsequently hold money on account of some other person
for payment to the taxpayer; or
(d) who has authority from some other person to pay money to the taxpayer, to
pay the amount specified in the notice to the Commissioner, being an amount
that shall not exceed the amount of the unpaid tax or the amount of tax that
the Commissioner believes will not be paid by the taxpayer by the due date.
(3) When a notice served under subsection (2) requires an agent to deduct a specified
amount from a payment of a salary, wages or other similar remuneration payable at fixed
intervals to the taxpayer, the amount required to be deducted by the agent from each
payment shall not exceed twenty per cent of the amount of each payment of salary,
wages, or other remuneration (after the payment of income tax).
(4) This section shall apply to a joint account when—
(a) all the holders of the joint account have unpaid tax liabilities; or
(b) the taxpayer can withdraw funds from the account (other than a partnership
account) without the signature or authorisation of the other account holders.
(5) An agent shall pay the amount specified in a notice under subsection (2) by the
date specified in the notice, being a date that that does not occur before the date that the
amount owed by an agent to the taxpayer becomes due to the taxpayer or held on the
taxpayer's behalf.
(6) When an agent who has been served with a notice under subsection (2) fails to
comply with the notice by reason of a lack of monies held by the agent on behalf of, or
due by the agent to the taxpayer, the agent shall notify the Commissioner in writing
within fourteen days of receiving the notice, setting out the reasons for the agent's
inability to comply.
(7) When the Commissioner is notified by an agent under subsection (6) that the
agent is unable to pay the amount due, the Commissioner shall within a period of thirty
days, in writing to an agent—
(a) accept the notification and cancel or amend the notice issued under
subsection (2); or
(b) reject the notification.
(8) The Commissioner shall notify an agent in writing of a revocation or amendment
of a notice given under subsection (2) where the taxpayer pays the whole or part of the
tax due or has made an arrangement satisfactory to the Commissioner for the payment
of the tax.
(9) The Commissioner shall serve the taxpayer with a copy of a notice under this
subsection (2), when serving the agent.
(10) A payment made by an agent to the Commissioner in accordance with a notice
issued under this section is treated as having been made on behalf of the taxpayer and
shall discharge an agent of any liability to the taxpayer or any other person.
(11) The Commissioner shall credit any amount paid by an agent under this section
against the tax owed by the taxpayer.
(12) The Commissioner may require, in writing, any person, within a period of at
least thirty days, to provide a return to the Commissioner showing any monies which
may be held by that person for a taxpayer referred to in subsection (1) or monies held by
that person which are due to a taxpayer referred to in subsection (1).

(13) A taxpayer who without reasonable cause fails to comply with a notice or a
requirement by the Commissioner under this section shall be personally liable for the
amount specified in the notice or requirement.
(14) The Commissioner shall not issue a notice under this section unless—
a) The taxpayer has defaulted in paying an instalment under section 33(2);
 b) The Commissioner has raised an assessment and the taxpayer has not
objected to or challenged the validity of the assessment within the prescribed
period;
c) The taxpayer has not appealed against an assessment specified in an objection
decision within the prescribed timelines;
d) The taxpayer has made a self-assessment and submitted a return but has not
paid the taxes due before the due date lapsed; or
e) The taxpayer has not appealed against an assessment specified in a decision of
the Tribunal or court.
[Act No. 38 of 2016, s. 40., Act No. 10 of 2018, s. 40, Act No. 22 of 2022, s.40, Act No. 4
0f 2023, s. 57}
42A Appointment of Value Added Tax withholding agent
(1) The Commissioner may appoint a person to withhold two per cent of the taxable
value on purchasing taxable supplies at the time of paying for the supplies and remit the
same directly to the Commissioner.
Provided that the withholding tax shall not apply to the taxable value of zero-rated
supplies and registered manufacturers whose value of investment in the preceding three
years from 1st July, 2022 is at least three billion [Act. No. 4 of 2023, s. 58(a))].
(2) The Commissioner may, at any time, revoke the appointment of a tax withholding
agent made under subsection (1), if the Commissioner deems it appropriate to do so.
(3) Subsection (1) shall not apply to taxable supplies for official aid-funded projects.
(4) For the avoidance of doubt, the withholding of tax under subsection (1) shall not
relieve the supplier of taxable supplies of the obligation to account for tax in accordance
with this Act and the regulations.
(4A) Deleted by Act No. 8 of 2021, s. 39.
(4B) The tax withheld under this section shall be remitted to the Commissioner within
five working days after the deduction was made. [Act. No. 4 of 2023, s. 58(b))].
(4C) A person who is required under this section to withhold tax commits an offence
if the person —
(a) fails to withhold the whole amount of the tax which should have been withheld;
or
(b) fails to remit the amount of the withheld tax to the Commissioner by the fifth
working day after the deduction was made. [Act No. 4 of 2023 s 58(a)]
(4D) A person who commits an offence under subsection (4C) is liable on conviction
to a penalty of ten per cent of the amount involved.
(5) A person who, prior to the commencement of this section, was appointed to
withhold tax under section 25A of the Value Added Tax Act (Cap. 476) shall,
notwithstanding the repeal of that section, be deemed to be a person appointed under
subsection (1),
 provided that this provision shall not be construed to impose any penalty whatsoever on
any such person who ceased to withhold tax for any period following the repeal of that
section up to the 8th June, 2016.
[Act No. 38 of 2016, s. 41, Act No. 15 of 2017, s. 28, Act No. 23 of 2019, s. 30, Act No. 8
of 2021, s. 39, Act No. 22 of 2022, s.41, Act No. 4 of 2023 s 58.]

42B Appointment of digital service tax agent.

(1) The Commissioner may appoint an agent for the purpose of collection and
remittance of digital service tax to the Commissioner.
(2) An appointment under subsection (1) may be revoked at any time by the
Commissioner.
[Act No. 8 of 2020, s. 19.]

42C Appointment of rental income tax agents.

(1) The Commissioner may appoint an agent for the purpose of the collection and
remittance of rental income tax to the Commissioner.
(2) An appointment under subsection (1) may be revoked at any time by the
Commissioner.
[Act No. 4 of 2023 s 59]
43. Preservation of funds
(1) This section applies if the Commissioner reasonably believes—
(a) that a taxpayer—
(i) has made taxable supplies, has removed excisable goods, or has
derived an income, in respect of which tax has not been charged; or
(ii) has collected a tax, including withholding tax, that has not been
accounted for; and
(b) that the taxpayer is likely to frustrate the recovery of the tax.
(2) The Commissioner may by notice in writing, in respect of a taxpayer to whom
this section applies, require a person—
(a) who owes or may subsequently owe money to the taxpayer;
(b) who holds or may subsequently hold money for or on account of the
taxpayer;
(c) who holds or may subsequently hold money for on account of another
person for payment to the taxpayer; or
(d) who has the authority from some other person to pay money to the taxpayer,
to preserve such money, and that person shall not transfer, withdraw, dispose of or
otherwise deal with that money except as provided for in the notice for a period of ten
working days or until the application by the Commissioner made in accordance with
subsection (3) is heard and determined by the High Court.
(3) The Commissioner shall apply, in the absence of the taxpayer, to the High Court
for an order against any person holding funds belonging to the taxpayer, prohibiting that
person from transferring, withdrawing, disposing of or otherwise dealing with such funds.
(4) The Court may issue an order under subsection (3) if the Court is satisfied that
the conditions specified under subsection (1) have been met.
 (5) An order made under this section shall be valid for a period of thirty days but the
Commissioner may apply to the Court for an extension of the period beyond the initial
thirty days.
(6) The Commissioner shall serve the order under this section on the taxpayer as soon
as is practicable and upon service, the taxpayer may, within fifteen days, apply to the
Court to discharge or vary the order.
(7) If the order made under this section is not discharged or varied, the Commissioner
shall, within thirty days of serving the taxpayer with the order, assess the tax due and
payable by the taxpayer, notify the taxpayer of the assessment and commence proceedings
for the recovery of the tax.
(8) An order issued under this section shall expire on the service of a notice of
assessment under subsection (7) unless the Court extends the order.
(9) Despite the provisions of any written law, contract or agreement, a person who
complies with an order made by the High Court under this section shall be indemnified
in respect of the actions taken in connection with the order against all proceedings or
processes.
(10) A person who, without reasonable cause, fails to comply with an order of the
High Court under this section shall be personally liable for the amount specified in the
order.

44. Seizure and forfeiture of goods

(1) This section shall apply to—

(a) any goods in respect of which the Commissioner or authorised officer
reasonably believes that the value added tax or excise duty payable in
respect of the supply, removal, or import of the goods has not been or will
not be paid; or

(b) goods for which excise duty has not been paid, unless the owner of the
goods has made arrangements that have satisfied the Commissioner for the
payment of the excise duty, which may include the giving of a security;

(c) excisable goods subject to excise control that have been moved, altered, or
in any way interfered with, except with the permission of the
Commissioner;
(d) excisable goods in respect of which, any person, in any matter relating to
excise, makes or produces a declaration, certificate, application or other
document, answer, statement or representation, that is false or incorrect in
any particular; or
(e) excisable goods in respect of which a refund of excise duty has been
unlawfully obtained.
(2) The Commissioner or an authorised officer may seize any goods to which this
section applies.
(3) The goods seized under this section shall be stored in a place approved by the
Commissioner or authorised officer.
(4) Subject to subsection (5), when goods have been seized under this section, the
Commissioner or authorised officer shall, as soon as practicable after the seizure and
having regard to the condition of the goods, serve the owner of the goods or the person
who had custody or control of the goods immediately before their seizure, a notice in
writing—
(a) identifying the goods;
(b) stating that the goods have been seized under this section and the reason for
seizure;
(c) setting out the terms for the release or disposal of the goods; and
(d) stating that the goods maybe forfeited to the Commissioner if they are not
claimed in accordance with subsection (7).
(5) The Commissioner or authorised officer shall not be required to serve a notice
under this section if, after making reasonable enquiries, the Commissioner or authorised
officer has insufficient information to identify the person on whom the notice should be
served.
(6) When the Commissioner or authorised officer is unable to serve the notice on the
person who is required to be served under this section, the Commissioner or authorised
officer may serve the notice on the person who claims the goods if that person has given
sufficient information to enable the notice to be served.
(7) The Commissioner or authorised officer may authorise that goods that have been
seized under this section be delivered to the person on whom a notice has been served
when that person has paid, or has given security for the payment of, the tax due and
payable, or that will become due and payable, in respect of the goods.
(8) If the tax due and payable, or the tax that will become due and payable, has not
been paid and security for the payment of the tax has not been given, the Commissioner
or authorised officer shall detain the seized goods—
(a) in the case of perishable goods, for a period that the Commissioner or
authorised officer considers reasonable having regard to the condition of the
goods; or
(b) in any other case—
(i) for ten days after the seizure of the goods; or

(ii) for ten days after the due date for payment of the tax due in respect of
the supply, removal, or import of the goods, whichever is the earlier.
(9) Where the detention period under subsection (8) has expired, the goods shall be
forfeited to the Commissioner.
(10) The Commissioner or authorised officer may sell forfeited goods in the manner
specified in section 41(6) and apply the proceeds of the sale of the forfeited goods in the
following order—
(a) towards the cost of taking, keeping, and selling the forfeited goods;
(b) towards the payment of the Value Added Tax or excise duty that is, or will
become, payable in respect of the supply, removal, or import of the goods;
and
(c) the remainder of the proceeds, if any, shall be retained by the
Commissioner.
(11) When the proceeds of the disposal of forfeited goods are less than the total of the
tax payable in respect of the supply, removal or import of the goods and cost of taking,
keeping, and selling the forfeited goods, the Commissioner may proceed to recover the
shortfall from the owner of the goods or the person who had custody or control of the
 goods immediately before they were seized as if the shortfall was a tax payable by that
person.
45. Departure prohibition order
(1) This section applies when the Commissioner has reasonable grounds to believe
that a person may leave Kenya without paying—
(a) a tax that is or will become payable by the person; or
(b) a tax that is or will become payable by a company in which the person is a
controlling member or tax representative.
(2) The Commissioner may issue a departure prohibition order, in writing, to the
Director in relation to a person to whom this section applies stating—
(a) the name and address of the person; and
(b) the amount of tax that is or will become payable by the person or by a
company in which the person is a controlling member or tax representative.
(3) The Commissioner shall, as soon as practicable after issuing a departure
prohibition order under subsection (1), serve a copy of the order on the person named in
the order.
(4) Where the Director has been issued with an order under this section, the Director
or an officer authorised by the Director, shall, so far as is permitted by any other written
law or this Act, shall prevent the person named in the order from departing Kenya,
including by the confiscation and retention of the person's passport, identity card, visa,
or other travel document authorising the person to leave Kenya.
(5) A person who is the subject of a departure prohibition order shall not be granted
customs or immigration clearance.
(6) A departure prohibition order shall remain in force until it is revoked by the
Commissioner.
(7) The Commissioner shall revoke a departure prohibition order if—
(a) the person named in the order pays in full the tax payable or that will
become payable by that person or by a company in which that person is a
controlling member or tax representative; or
(b) the person named in the order makes an arrangement satisfactory to the
Commissioner for the payment of the tax that is or will become payable by
that person or by a company in which that person is a controlling member
or tax representative.
(8) As soon as practicable after making a decision to revoke a departure prohibition
order, the Commissioner shall notify the Director and the person named in the order.
(9) No proceedings, criminal or civil, may be instituted or maintained against the
Government, the Director, the Commissioner, an officer authorised to act under this
section, or a custom, immigration, police, or any other person for anything lawfully done
under this section.
(10) In this section—
“company” means a company within paragraph (a) of the definition in section 3;
and
"Director” means the Director-General of the Kenya Citizens and Foreign
Nationals Management Service appointed under section 13 of the Kenyan Citizenship
and Foreign Nationals Management Service Act (Cap. 171). [Act No. 23 of 2019, s. 31.]
46. Transferred tax liabilities
(1) When a taxpayer (referred to as the "transferor") has a tax liability in relation to
a business carried on by the taxpayer and the taxpayer has transferred all or some of the
assets of the business to a related person (referred to as the "transferee"), the transferee
shall be liable for the tax liability (referred to as the "transferred liability") of the
transferor.
(2) Despite subsection (1), the Commissioner may recover the whole or part of the
transferred liability from the transferor.

47. Offset or refund of overpaid tax

(1) Where a taxpayer has overpaid a tax under any tax law, the taxpayer may apply to
the Commissioner, in the prescribed form—
(a) to offset the overpaid tax against the taxpayer's outstanding tax debts and future
tax liabilities; or
(b) for a refund of the overpaid tax within five years, or six months in the case of
value added tax, after the date on which the tax was overpaid.
[Act No. 4 of 2023, s. 60(a)]
(2) The Commissioner shall ascertain and determine an application under subsection
(1) within ninety days and where the Commissioner ascertains that there was an
overpayment of tax—
(a) in the case of an application under subsection (1)(a), apply the overpaid tax
to such outstanding tax debts or future tax liability; and
[Act No. 4 of 2023, s. 60(b)(i)]
(b) in the case of an application under subsection (1)(b), refund the overpaid tax
within a period of six months from the date of ascertainment and, if the
Commissioner fails to refund, the overpaid tax shall be applied to offset the
taxpayer’s outstanding tax debt or future tax liabilities.
[Act No. 4 of 2023, s. 60(b)(ii)]
(3) Where the Commissioner fails to ascertain and determine an application under
subsection (1) within ninety days, the same shall be deemed ascertained and approved.
(4) The Commissioner may for purposes of ascertaining the validity of an application
under subsection (1), subject the application to an audit.
(4A) Where an application under subsection (1) has been subjected to an audit under
subsection (4), the Commissioner shall ascertain and determine the application within
one hundred- and twenty-days failure to which, the application shall be deemed to
have been ascertained and approved. [Act No.4 of 2023, s. 59]
(5) Where the application is for a refund of tax under subsection (1)(b), the
Commissioner shall apply the overpayment in the following order—
(a) in payment of any other tax owing by the taxpayer under the specific tax law;
(b) in payment of a tax owing by the taxpayer under any other tax law; and
(c) any remainder shall be refunded to the taxpayer.
 (6) Where the Commissioner fails to refund the overpaid tax within the period
specified in subsection (2)(b), the amount due shall attract interest of one per cent for
each month or part thereof during which the amount remains unpaid.
(7) Where the Commissioner notifies a taxpayer that an application under subsection
(1)(a) has been ascertained and applies the overpaid tax liability to offset an
outstanding tax in accordance with subsection (2)(a), interest or penalties shall not
accrue on the amount applied to offsetting the outstanding tax liability from the date
of the notification.
(8) Where the Commissioner has applied the overpaid tax to offset an outstanding tax
liability under subsection (2)(a), any outstanding tax after such application shall accrue
interest and penalties in accordance with this Act.
(9) Notwithstanding any other provision of this section, where a person overpays an
instalment tax due under section 12 of the Income Tax Act (Cap. 470), the
Commissioner shall apply the overpaid tax to offset the taxpayer’s future instalment
tax liability.
(10) Where, after the application of the overpaid tax under subsection (9), the
Commissioner later determines that there was no overpayment of instalment tax, the
amount of the tax that was used to offset the taxpayer’s future instalment tax liabilities
under subsection (9) shall be treated as a tax due to the Commissioner in the
subsequent tax period.
(11) The amount due under subsection (10) shall be due from the date that the
Commissioner applied that amount to offset an instalment tax liability.
(12) The Commissioner shall notify the taxpayer in writing of the amount due under
subsection (10) and specify in the notification—
(a) the interest on the amount due; and
(b) any penalties due in respect of the amount due.
(13) A person aggrieved by a decision of the Commissioner under this section may
appeal to the Tribunal within thirty days after being notified of the decision.
[Act No. 38 of 2016, s. 42., Act No. 8 of 2021, s. 40, Act No. 29 of 2022, s. 42,
Act No. 4 of 2023 s.60]
47A Refund of tax paid in error.
(1) Where tax has been paid in error, the Commissioner shall, except as otherwise
provided in this Act or the relevant tax law, refund such tax.
(2) In processing a refund under subsection (1), the provisions of section 47(1), (2),
(3), (4) and (5) shall apply, with the necessary modifications.
(3) For the purposes of this section, “tax paid in error” means any tax paid which the
Commissioner is satisfied ought not to have been paid.
[Act No. 22 of 2022, s. 43]
47B Refund of tax paid on exempted or zero rated supply.
The Commissioner may, upon approval by the Cabinet Secretary, refund tax paid in error
in any case where the supply is exempt or zero-rated under the Act but such exemption or
the zero rating was not processed within the specified period due to circumstances beyond
the control of the taxpayer.
[Act No. 22 of 2022, s. 43]

48. Erroneous refund of tax

(1) Where any tax has been refunded in error, the person to whom the refund has been
erroneously made shall, on demand by the Commissioner, pay the amount erroneously
refunded.
(2) Where a demand has been made for any amount of tax under subsection (1), that
amount shall be deemed to be due from the person liable to pay the tax on the date upon
which the demand is served upon him or her and if payment is not made within thirty days
of the date of service, an interest equal to 1% per month or part thereof of such unpaid
amount shall forthwith be due and payable,
provided that the interest chargeable under this subsection shall not exceed one hundred
percent of the tax originally due.
[Act No. 38 of 2016, s. 43.]

PART VIII — TAX DECISIONS, OBJECTIONS AND APPEALS

49. Statement of reasons
Where the Commissioner has refused an application under a tax law, the notice of
refusal shall include a statement of reasons for the refusal.

50.
Conclusiveness of tax decisions
(1) Except in proceedings under this Part—
(a) the production of a notice of an assessment or a document under the hand of
the Commissioner shall be conclusive evidence of the making of the
assessment and that the amount and particulars of the assessment are correct;
and
(b) in the case of a self-assessment, the production of the original return of the
self-assessment or a document under the hand of the taxpayer shall be
conclusive evidence of the contents of the return.
(2) When the Commissioner serves an assessment on a taxpayer electronically, a copy
of the notice of assessment shall be treated as a certificate under the hand of the
Commissioner identifying the assessment and specifying the details of the electronic
transmission of the assessment.
(3) When a taxpayer has submitted a return of a self-assessment electronically, a copy
of the return shall be treated as a return under the hand of the taxpayer identifying the
return and specifying the details of the electronic transmission of the return.
 (4) In this section, "proceedings under this Part" means—

(a) an objection made under section 51;

(b) an appeal made to the Tribunal under section 52 in relation to an appealable
decision;
(c) an appeal made to the High Court under section 53 in relation to a decision
of the Tribunal; or
(d) an appeal made to the Court of Appeal under section 53 in relation to a
decision of the High Court.
51. Objection to tax decision
(1) A taxpayer who wishes to dispute a tax decision shall first lodge an objection
against that tax decision under this section before proceeding under any other written law.
(2) A taxpayer who disputes a tax decision may lodge a notice of objection to the
decision, in writing, with the Commissioner within thirty days of being notified of the
decision.
(3) A notice of objection shall be treated as validly lodged by a taxpayer under
subsection (2) if—
(a) the notice of objection states precisely the grounds of objection, the
amendments required to be made to correct the decision, and the reasons for
the amendments;
(b) in relation to an objection to an assessment, the taxpayer has paid the entire
amount of tax due under the assessment that is not in dispute, or has applied
for an extension of time to pay the tax not in dispute under section 33(1); and
(c) all the relevant documents relating to the objection have been submitted
(4) Where the Commissioner has determined that a notice of objection lodged by a
taxpayer has not been validly lodged, the Commissioner shall within a period of fourteen
days notify the taxpayer in writing that the objection has not been validly lodged and
request the taxpayer to submit the information specified in the notice within seven days
after the date of the notice. [Act No. 4 of 2023, s. 61(a)]
(4A) Despite subsection (3), where a taxpayer fails to provide the information
required under subsection (4) or fails to provide the information within the specified
period, the Commissioner may make an objection decision within sixty days after the
date on which the notice of objection was lodged. [Act No. 4 of 2023, s. 61(b)]
(5) Where the tax decision to which a notice of objection relates is an amended
assessment, the taxpayer may only object to the alterations and additions made to the
original assessment.
(6) A taxpayer may apply in writing to the Commissioner for an extension of time to
lodge a notice of objection.
(7) The Commissioner shall consider and may allow an application under subsection
(6) if —
(a) the taxpayer was prevented from lodging the notice of objection within the
period specified in subsection (2) because of an absence from Kenya,
sickness or other reasonable cause; and
(b) the taxpayer did not unreasonably delay in lodging the notice of objection.
(7A) The Commissioner shall notify the taxpayer of the decision made under
subsection (7) within fourteen days after receipt of the application.
 (8) Where a notice of objection has been validly lodged within time, the
Commissioner shall consider the objection and decide either to allow the objection in
whole or in part, or disallow it, and Commissioner's decision shall be referred to as an
"objection decision".
(9) The Commissioner shall notify in writing the taxpayer of the objection decision
and shall take all necessary steps to give effect to the decision, including, in the case of
an objection to an assessment, making an amended assessment.
(10) An objection decision shall include a statement of findings on the material facts
and the reasons for the decision.
(11) The Commissioner shall make the objection decision within sixty days from the
date of receipt of a valid notice of objection failure to which the objection shall be deemed
to be allowed.
(12) A person who is dissatisfied with the decision of the Commissioner under
subsection (11) may appeal to the Tribunal within thirty days after being notified of the
decision.
[Act No. 10 of 2018, s. 41, Act No. 23 of 2019, s. 3, Act No. 22 of 2022, s. 44, Act No. 4
of 2023, s. 61 ]
52. Appeal of appealable decision to the Tribunal
(1) A person who is dissatisfied with an appealable decision may appeal the decision
to the Tribunal in accordance with the provisions of the Tax Appeals Tribunal Act (Cap.
469A).
(2) A notice of appeal to the Tribunal relating to an assessment shall be valid if the
taxpayer has paid the tax not in dispute or entered into an arrangement with the
Commissioner to pay the tax not in dispute under the assessment at the time of lodging
the notice.
53. Appeals to High Court
A party to proceedings before the Tribunal who is dissatisfied with the decision of
the Tribunal in relation to an appealable decision may, within thirty days of being
notified of the decision or within such further period as the High Court may allow, appeal
the decision to the High Court in accordance with the provisions of the Tax Appeals
Tribunal Act (Cap. 469A).

54. Appeals to Court of Appeal

A party to proceedings before the High Court who is dissatisfied with the decision of
the High Court in relation to an appealable decision may, within thirty days of being
notified of the decision or within such further period as the Court of Appeal may allow,
appeal the decision to the Court of Appeal.

55. Settlement of dispute out of Court or Tribunal

(1) Where a Court or the Tribunal permits the parties to settle a dispute out of Court
or the Tribunal, as the case may be, the settlement shall be made within one hundred and
twenty days from the date the Court or the Tribunal permits the settlement. [Act No. 4 of
2023 s. 62].
(2) Where parties fail to settle the dispute within the period specified in subsection
(1), the dispute shall be referred back to the Court or the Tribunal that permitted the
settlement.
 [Act No. 4 of 2023 s. 62]
56. General provisions relating to objections and appeals
(1) In any proceedings under this Part, the burden shall be on the taxpayer to prove
that a tax decision is incorrect.
(2) An appeal to the High Court or to the Court of Appeal shall be on a question of
law only.
(3) In an appeal by a taxpayer to the Tribunal, High Court or Court of Appeal in
relation to an appealable decision, the taxpayer shall rely only on the grounds stated in
the objection to which the decision relates unless the Tribunal or Court allows the person
to add new grounds.
57. Admissibility of evidence
Notwithstanding anything to the contrary in any other written law—
(a) a document, or copy of or extract from a document, relating to the affairs of
any person which has been seized or obtained by an authorised officer under
“section 58, section 59 or section 60 as the case may be; or
(b) a statement made by a person relating to his affairs is made to an authorised
officer in accordance with the provisions of this Act;
shall, if relevant, be admissible in civil or criminal proceedings under this Act to which
that person is a party.

PART IX — ENFORCEMENT
58. Power to inspect goods, records, etc

(1) Notwithstanding anything to the contrary in any written law, an authorised officer
may inquire into the affairs of a person under any tax law, and shall at all times have full
and free access to all lands, buildings, places to inspect all goods, equipment, devices
and records, whether in the custody or control of a public officer, or of a body corporate
or of any other person, and may make extracts from or copies of those records.
(2) An officer acting under subsection (1) may require the owner or employee, or a
representative of the owner of the business, to give him all assistance and to answer all
questions relating to the inquiry.

59. Production of records

(1) For the purposes of obtaining full information in respect of the tax liability of any
person or class of persons, or for any other purposes relating to a tax law, the
Commissioner or an authorised officer may require any person, by notice in writing, to—
(a) produce for examination, at such time and place as may be specified in the
notice, any documents (including in electronic format) that are in the
person's custody or under the person's control relating to the tax liability of
any person;
(b) furnish information relating to the tax liability of any person in the manner
and by the time as specified in the notice; or
(c) attend, at the time and place specified in the notice, for the purpose of giving
evidence in respect of any matter or transaction appearing to be relevant to
the tax liability of any person.
 (2) If the person required to produce documents under subsection (1)(a) is a financial
institution—
(a) the documents shall not, while they are being examined, be removed from
the premises of the financial institution or other premises at which they are
produced;
(b) the Commissioner or authorised officer carrying out the examination may
make copies of such documents for the purposes of any report relating to
the examination; and
(c) the confidentiality of the information obtained in the course of the
examination by the Commissioner or authorised officer shall be maintained
and the information shall be used solely for the purposes of the tax laws.
(3) The Commissioner or authorised officer may require that the information referred
to in subsection (1) be—
(a) given on oath, verbally or in writing, and, for that purpose, the Commissioner
or authorised officer may administer the oath; or
(b) verified by a statutory declaration or in any other manner that the
Commissioner may prescribe.
(4) This section shall have effect despite—
(a) any law relating to privilege or the public interest with respect to the giving
of information or the production of any documents (including in electronic format); or
(b) any contractual duty of confidentiality.

Data management and reporting system

59A.
(1) The Commissioner may establish a data management and reporting system for
the submission of electronic documents including detailed transactional data relating to
those documents.
(2) The Commissioner shall notify in writing the persons required to submit
electronic documents through the system established under subsection (1).
(3) The electronic documents referred to in subsection (2) include electronic invoice
returns—
(a) Of payments made by a person in the ordinary course of business where
goods were exchanged for consideration by a person not employed in the
business;
(b) For payments made by a person in the ordinary course of business where
services were rendered, or in anticipation of services to be rendered, by a person
not employed in the business;
(c) For payments for services rendered, or in anticipation of services to be
rendered, in connection with the formation, acquisition, development, or disposal
of a business or a part of it, by persons not employed in the business;
(d) For periodical or lump sum payments in respect of a royalty; or
(e) For such other commercial or financial transaction as may be designated by
the Commissioner.
 (4) For the purposes of this section—
(a) “transactional data” includes—
(i) The names and addresses of each person to whom a payment was
made;
(ii) where the payment is for services, the amount of the payment
specifying whether the payment is a commission of any kind or is for
expenses incurred in connection with rendering the services;
(iii) Where the payment is in any form of valuable consideration
other than money, the particulars of the consideration; and
(iv) Such other particulars as the Commissioner may specify;
(b) References to payments for services include references to payments in
the nature of commission of any kind and references to payments in respect of expenses
incurred in connection with the rendering of services; and
(c) references to the making of payments include references to the giving of
any form of valuable consideration, and the requirement imposed by paragraph (a)(iii) to
state the amount of a payment shall, in relation to any consideration given otherwise than
in the form of money, be construed as a requirement to give particulars of the
consideration.
(Act No. 4 of 2023, s. 63)
60. Power of search and seize
(1) The Commissioner or an authorised officer shall, with a warrant, have full and
free access to any building, place, property, documents, or data storage device for the
purposes of administering a tax law.
(2) The Commissioner or an authorised officer may secure the building, place,
property, documents, or data storage device to which access is sought under subsection
(1) before obtaining a warrant.
(3) In the exercise of the power under subsection (1), the Commissioner or authorised
officer may—
(a) make an extract or copy of any documents or information stored on a data
storage device to which access is obtained under subsection (1);
(b) seize any documents that, in the opinion of the Commissioner or authorised
officer, may be material in determining the tax liability of a taxpayer and
retain such documents for the period specified in subsection (9);
(c) seize and retain a data storage device when a physical copy or electronic
copy of information stored on the device has not been provided for in the
period specified in subsection (9);
(d) require the owner or lawful occupier (including an employee) of a building
or place to which access is obtained under subsection (1) to answer
questions relating to any document found in the building or place, whether
on a data storage device or otherwise, or to any entry in the document, and
to render such explanation and give any information that the Commissioner
or authorised officer may require in relation to a tax law;
(e) require the owner or lawful occupier (including an employee) of a building
or place to which access is obtained under subsection (1) to provide access
 to decryption information necessary to decrypt data to which access is
sought under this section;
(f) at the risk and expense of the occupier of the premises to which access is
obtained under subsection (1), open and examine any package found in the
premises; or
(g) take and retain without payment such reasonable samples of any goods as
the Commissioner or authorised officer may think necessary for the exercise
of functions under a tax law.
(4) The Commissioner or an authorised officer may require a police officer to be
present for the purposes of exercising any power under this section.
(5) An authorised officer shall not enter or remain in any building or place if, upon
request by the owner or lawful occupier, the officer is unable to produce written
authorization by the Commissioner permitting that officer to exercise the powers
conferred by this section.
(6) The owner or lawful occupier of a building or place to which an exercise of a
power under this section relates shall provide all reasonable facilities and assistance to
the Commissioner or authorised officer in the exercise of the power.
(7) A person whose documents have been seized under this section may examine
them and make copies of the seized documents, at that person's expense, during the
business hours of the Authority.
(8) A person whose data storage device has been seized under this section may have
access to the device during the business hours of the Authority on such terms and
conditions as the Commissioner or an authorised officer may specify.
(9) The Commissioner or an authorised officer shall not retain any document or a
data storage device seized under this section for a period longer than six months unless
the document or data storage device is required for the purposes of any proceedings under
this Act or any other written law.
(10) This section shall have effect despite—
(a) any law relating to privilege or the public interest with respect to access to
premises, or the production of any property or documents, including
documents in electronic format; or
(b) any contractual duty of confidentiality.
61. Notice to appear before the Commissioner
Where the Commissioner is satisfied that a person has committed an offense under a
tax law, the Commissioner may, by notice in writing, require the person to appear before
him.

PART X — RULINGS
62. Binding public rulings
(1) The Commissioner may make a public ruling in accordance with section 63
setting out the Commissioner's interpretation of a tax law.
(2) A public ruling made in accordance with section 63 shall be binding on the
Commissioner until the ruling is withdrawn by the Commissioner.
(3) A public ruling shall not be binding on a taxpayer.
 [Act No. 10 of 2018, s. 42.]
63. Making a public ruling

(1) The Commissioner shall make a public ruling by publishing a notice of the public
ruling in at least two newspapers with a nationwide circulation.
(2) A public ruling shall state that it is a public ruling and have a heading specifying
the subject matter of the ruling and an identification number.
(3) A public ruling shall take effect on the date specified in the public ruling or, when
a date has not been specified, from the date the ruling is published in accordance with
the provisions of subsection (1).
(4) A public ruling shall set out the Commissioner's opinion on the application of a
tax law in the circumstances specified in the ruling; and shall not be a decision of the
Commissioner for the purposes of this Act or the Tax Appeals Tribunal Act (Cap. 469A).

64. Withdrawal of a public ruling

(1) The Commissioner may withdraw a public ruling, in whole or in part, by
publishing a notice of the withdrawal in at least two newspapers with a nationwide
circulation.
(2) Where a law is enacted or the Commissioner makes another public ruling that is
inconsistent with an existing public ruling, the existing public ruling shall either be
withdrawn or shall be withdrawn to the extent that it is inconsistent with the law or the
new public ruling.
(3) The withdrawal of a public ruling, in whole or part, shall take effect from—
(a) where subsection (1) applies—
(i) the date specified in the notice of withdrawal; or
(ii) the date that the notice of withdrawal of the ruling is published in
compliance with subsection (1);
whichever is the later; or
(b) where subsection (2) applies, the commencement date of the law or
commencement date of the new public ruling is published.
(4) A public ruling that has been withdrawn, in whole or part shall—
(a) continue to apply to a transaction commenced before the public ruling was
withdrawn; and
(b) not apply to a transaction commenced after the public ruling was withdrawn
to the extent that the ruling is withdrawn.
65. Binding private rulings
(1) A taxpayer may apply to the Commissioner for a private ruling which shall set
out the Commissioner's interpretation of a tax law in relation to a transaction entered
into, or proposed to be entered into, by the taxpayer.
(2) An application under this section shall be in writing and—
(a) shall include all relevant details of the transaction to which the application
relates together with all relevant documents;
 (b) shall specify precisely the question on which the Commissioner's
interpretation is required; and
(c) shall give a full statement setting out the interpretation by the applicant of
the tax law in relation to the transaction.
(3) Subject to section 66, the Commissioner shall issue a private ruling to an
applicant within sixty days of receiving an application for a private ruling under this
section.
(4) If the taxpayer has made a complete and accurate disclosure of the transaction in
relation to an application for a private ruling and the transaction has proceeded in all
material respects as described in the application, the private ruling shall be binding on
the Commissioner.
(5) A private ruling shall not be binding on a taxpayer.
(6) A private ruling that is inconsistent with a public ruling that is in existence at the
time of the making of the private ruling shall supersede the public ruling to the extent of
the inconsistency with the public ruling.
[Act No. 2 of 2020, s. Sch.]
66. Refusing an application for a private ruling
(1) The Commissioner may refuse an application for a private ruling if—
(a) the Commissioner has already decided the question that is the subject of the
application in—
(i) a notice of an assessment served on the applicant;
(ii) a public ruling made under section 63 that is in existence; or
(iii) a ruling published under section 69 that is in existence;
(b) the application relates to a matter that is the subject of a tax audit in relation
to the applicant or an objection lodged by the applicant;
(c) the application is frivolous or vexatious;
(d) the transaction to which the application relates has not been carried out and
there are reasonable grounds to believe that the transaction will not be
carried out;
(e) the applicant has not provided the Commissioner with sufficient
information to make a private ruling;
(f) in the opinion of the Commissioner, it would be unreasonable to make a
private ruling in relation to the application, having regard to the resources
needed to make the private ruling and any other matter the Commissioner
considers relevant; or
(g) the making of the ruling involves the application of a tax avoidance
provision.
(2) If the Commissioner decides not to make a private ruling under this section, the
Commissioner shall notify the applicant in writing of the decision.
67. Making a private ruling

(1) If the Commissioner makes a private ruling, the Commissioner shall notify the
applicant of the ruling in writing.
 (2) The Commissioner may make a private ruling based on assumptions about a
future event or any other appropriate ground.
(3) A private ruling shall state that it is a private ruling, set out the question ruled on,
and identify—
(a) the taxpayer;
(b) the tax law relevant to the private ruling;
(c) the reporting period to which the ruling applies;
(d) the transaction to which the ruling relates; and
(e) any assumptions on which the ruling is based.
(4) A private ruling shall take effect when the applicant is served with written notice
of the ruling and the ruling shall remain in force until it is withdrawn.
(5) A private ruling shall set out the Commissioner's opinion on the question raised
in the ruling and is not a decision of the Commissioner for the purposes of this Act or
the Tax Appeals Tribunal Act (Cap. 469A).
68. Withdrawal of a private ruling
(1) The Commissioner may, for reasonable cause, withdraw a private ruling, in whole
or part, by notifying the applicant in writing.
(2) If a law is enacted or the Commissioner makes a public ruling that is inconsistent
with a private ruling, the private ruling shall be withdrawn to the extent of the
inconsistency of the private ruling with the law or the public ruling.
(3) The withdrawal of a private ruling, in whole or part, shall take effect from—
(a) the date specified in the notice of withdrawal if subsection (1) applies; or
(b) the date of the enactment of the inconsistent law or inconsistent public
ruling if subsection (2) applies.
(4) A private ruling that has been withdrawn—
(a) shall continue to apply to a transaction by the applicant that commenced
before the ruling was withdrawn; and
(b) shall not apply to a transaction of the applicant that commenced after the
ruling was withdrawn to the extent the ruling is withdrawn.
69. Repealed by Act No. 2 of 2020, Sch

PART XI — COMMUNICATIONS, FORMS AND NOTICES

70. Official languages
The official languages of Kenya shall be the official languages of the tax laws and
the Commissioner may refuse to recognize any communication or document that is not
in an official language.

71. Prescribed form

(1) A tax return, application, notice, statement, or other document required to be
submitted or lodged with the Commissioner under a tax law shall be in the prescribed
form if the document—
 (a) in the form prescribed by the Commissioner for that type of tax return,
application, notice, statement, or document; and
(b) contains the information (including any attached documents required) and
is signed as required by the form.
(2) The Commissioner or authorised officer shall notify in writing a person when a
tax return, application, notice, statement, or other document submitted or lodged by the
person is not in the prescribed form.

72. Tax Compliance Certificate

(1) Any person may apply to the Commissioner for a Tax Compliance Certificate.
(2) The Commissioner may issue a Tax Compliance Certificate, which shall be
valid for the period specified in the certificate, upon the applicant fulfilling conditions
that the Commissioner may impose.
(3) The Commissioner may revoke a Tax Compliance Certificate issued under
subsection (2) if the Commissioner finds that the person has failed to honour a demand
for tax issued by the Commissioner or has violated the provisions of a tax law.

73. Manner of submitting documents to the Commissioner

(1) A person required under a tax law or by the Commissioner under section 75 to
submit or lodge a tax return, application, notice, statement, or other document with the
Commissioner electronically shall do so unless authorised by the Commissioner by
notice in writing to submit in accordance with subsection (2).
(2) A person who is not required to submit or lodge a tax return, application, notice,
statement, or other document in electronic form shall submit or lodge the tax return,
application, notice, statement, or other document by personal delivery or normal post.

74. Service of notices by the Commissioner

(1) Except as otherwise provided in a tax law, a notice or other document required
to be served on, or given to, a person by the Commissioner under a tax law may be served
or given by—
(a) delivering it to the person or the person's tax representative;
(b) leaving it at, or sending it by post to, the person's usual or last known place
of business or residence; or
(c) transmitting it in electronic form.
(2) When a person—
(a) refuses to accept delivery of a letter addressed to him or her; or
(b) fails to collect a letter after being informed that the letter is available for
collection at a post office;
(c) the letter shall be treated as having been delivered to the person on the date
on which that person refused to accept delivery of the letter or was informed
that the letter was at the post office.
(3) The validity of service of a notice or other document shall not be challenged by
a person who complies wholly or partly with the notice or document.
 (4) In this section, "tax representative", in relation to a taxpayer, shall include the
tax agent of the taxpayer.
75. Application of electronic tax system
(1) The Commissioner may, authorise the following to be carried out through the use
of information technology, including computer systems, mobile electronic devices,
electronic and mobile communication systems—
(a) an application for registration under a tax law;
(b) the submitting or lodging of a tax return or other document under a tax
law;
(c) the payment or repayment of a tax under a tax law; or
(d) the doing of any other act or thing that is required to be done under a tax
law.
(2) A certificate of registration, service of a notice, issuing of any document, or other
act or thing that is required to be issued, served, made, or done by the Commissioner
under a tax law, may be issued, served, made, or done through a computer system, mobile
electronic device or other form of electronic or mobile communication.
76. Admissibility of documents produced electronically
In any proceedings under this Act, a statement contained in a document in electronic
form shall be admissible as evidence of any fact stated in that document if the document
is produced in the manner prescribed by this Act or any other tax law.

77. Due date for submission and payment

If the date for—
(a) submitting or lodging a tax return, application, notice, or other document;
(b) the payment of a tax; or
(c) taking any other action under a tax law,
falls on a Saturday, Sunday, or public holiday in Kenya, the due date shall be the previous
working day:
Provided that where a person who submits a notice of objection in electronic form or a
tax return in electronic form, or pays the tax electronically, the due date shall remain the
date specified in the relevant tax law.
[Act No. 8 of 2021, s. 42.]
78. Defect not to affect validity of tax assessments or other documents
(1) When a notice of assessment or any other document purporting to be made,
issued, or executed under a tax law is, in substance and effect, in conformity with, is
consistent with the intent and meaning of, the tax law under which it has been made and
the person assessed, intended to be assessed, or affected by the document, is designated
in it according to common intent and understanding—
(a) the validity of the notice of assessment or other document is not affected by
reason that any of the provisions of the tax law under which it has been
made or issued have not been complied with;
(b) the notice of assessment or other document shall not be quashed or deemed
to be void or voidable for want of form; and
 (c) the notice of assessment or other document shall not be affected by reason
of any mistake, defect, or omission therein.
(2) An assessment shall not be impeached or affected by reason of a mistake in the
assessment as to—
(a) the name of the person assessed;
(b) the description of any income, supply, or removal; or
(c) the amount of tax charged; or
(d) any variance between the assessment and the duly served notice of the
assessment that is not likely to deceive or mislead a person affected by the
assessment.
79. Rectification of mistakes
When a notice of an assessment or other document served by the Commissioner under
a tax law contains a mistake that is apparent from the record and the mistake does not
involve a dispute as to the interpretation of the law or facts of the case, the Commissioner
may, for the purposes of rectifying the mistake, amend the assessment or document any
time before the expiry of five years of the date of service of the notice of the assessment
or other document.

PART XII — ADMINISTRATIVE PENALTIES AND OFFENCES

80. General provisions relating to administrative penalties and offences
(1) A person shall not be subject to both the imposition of a penalty and the
prosecution of an offence in respect of the same act or omission in relation to a tax law.
(2) If a person has committed an act or omission that may be liable under a tax law
to both the imposition of penalty and the prosecution of an offence, the Commissioner
shall decide whether to make a demand for the penalty or to prosecute the offence.
(3) If a person has paid a penalty under a tax law and, in respect of the same act or
omission for which the penalty was paid, the Commissioner commences a prosecution,
the penalty shall be repaid to the person as a refund of tax under section 47, and the
person shall not pay a penalty, in the case of a prosecution, unless the prosecution is
withdrawn.
[Act No. 10 of 2018, s. 43.]
81. Penalties relating to registration or licensing
(1) Subject to subsections (3) and (4), a person who fails to apply for registration as
required under a tax law without reasonable excuse shall be liable to a penalty equal to
one hundred thousand shillings for every month or part of a month for the period—
(a) commencing from the month the person was first required to apply for
registration; and
(b) ending on the month immediately preceding the month the person submits
an application for registration or the person is registered by the
Commissioner on the Commissioner's own motion.
(2) Subject to subsections (3) and (4), a person who fails to apply for deregistration
or cancellation of registration as required under a tax law without reasonable excuse shall
 be liable to a penalty equal to one hundred thousand shillings for every month or part of
a month for the period—
(a) commencing from the month the person was first required to apply for
deregistration or cancellation of registration; and
(b) ending on the month immediately preceding the month the person submits
an application for deregistration or cancellation of registration, or the person
is deregistered or has their registration cancelled by the Commissioner on
the Commissioner's own motion.
(3) A penalty imposed under subsection (1) or (2) shall not exceed one million
shillings.
(4) When a tax law, other than this Act, provides for registration, deregistration or
cancellation of registration, this section shall apply only if that tax law does not impose
an administrative penalty for failing to apply for registration, deregistration or
cancellation of registration, as the case may.
(5) In this section, a reference to registration under a tax law includes licensing under
a tax law.
82. Penalty for failing to keep documents
(1) A person who, without reasonable cause, fails to keep, retain, or maintain a
document as required under a tax law without reasonable cause for a reporting period
shall be liable to a penalty equal to the higher of—
(a) ten per cent of the amount of tax payable by the person under the tax law to
which the document relate for the reporting period to which the failure
relates; or
(b) the amount specified in subsection (2).
(2) When no tax is payable by the person for the reporting period to which the failure
referred to in subsection (1) relates, the penalty shall be one hundred thousand shillings.
83. Late submission penalty
(1) A person who submits a tax return after the due date shall be liable to a penalty—
(a) of twenty-five percent of the tax due or ten thousand shillings whichever is
higher, if it is in relation to a return required to be submitted on account of
employment income;
(b) one thousand shillings if it is in relation to a return required to be submitted
under Turnover Tax; or
(c) five per cent of the amount of tax payable under the return or ten thousand
shillings, whichever is the higher, if it is in relation to value added tax or
excise duty;
(d) in any other case-
(i) five per cent of the amount of tax payable under the return or twenty
thousand shillings, whichever is the higher, in respect of a person other than
an individual; or
(ii) five per cent of the amount of tax payable under the return or two
thousand shillings, whichever is the higher, for an individual.
Provided that in the calculation of the late submission penalty for purposes of
this section, the amount of tax payable or due under the return shall be reduced by the
amounts already paid and withholding tax credits.
 (2) A person who fails to submit a document, other than a tax return, as required
under a tax law by the due date shall be liable to a penalty of one thousand shillings for
each day or part day of default but the total penalty shall not exceed fifty thousand
shillings.
(3) For the purposes of subsection (2), a person ceases to be in default at the time the
document is received by the Commissioner.
[Act No. 10 of 2018, s. 44, Act No. 23 of 2019, s. 33, Act No. 2 of 2020, Sch.]
83A Late payment penalty.
A person who fails to pay tax on the due date shall be liable to pay a late payment penalty
of five percent of the tax due and payable.
[Act No. 10 of 2018, s. 45.]
84. Tax shortfall penalty
(1) This section applies to a person—
(a) if that person knowingly makes a statement to an authorised officer that is
false or misleading in a material particular or knowingly omits from a
statement made to an authorised officer any matter or thing without which
the statement is false or misleading in a material particular; and
(b) if the tax liability of that person or of another person computed on the basis
of the statement made by that person is less than it would have been had the
statement not been false or misleading (the difference being referred to as
the "tax shortfall").
(2) Subject to subsections (3) and (4), a person to whom this section applies shall be
liable to a tax shortfall penalty of—
(a) seventy-five per cent of the tax shortfall when the statement or omission
was made deliberately; or
(b) Deleted by Act No. 23 of 2019, s. 34.
(3) The amount of a tax shortfall penalty imposed under subsection (2) on a person
shall be increased by—
(a) ten percentage points when this is the second application of this section to
that person; or
(b) twenty-five percentage points when this is the third or a subsequent
application of this section to that person.
(4) The amount of a tax shortfall penalty imposed under subsection (2) on a person
shall be reduced by ten percentage points when that person voluntarily discloses to the
Commissioner the statement or omission to which the section applies prior to—
(a) discovery by the Commissioner of the tax shortfall; or
(b) the commencement of an audit of the tax affairs of the person to whom the
statement relates,
whichever is the earlier.
(5) A tax shortfall penalty shall not be payable under subsection (2) when—
(a) the person who made the statement did not know and could not reasonably
be expected to know that the statement was false or misleading in a material
particular;
 (b) the tax shortfall arose as a result of a taxpayer taking a reasonably arguable
position on the application of a tax law to the taxpayer's circumstances in
submitting a self-assessment return; or
(c) the failure was due to a clerical or similar error, other than a repeated clerical
or similar error.
(6) A position taken by a taxpayer in making a self-assessment shall not be regarded
as a reasonably arguable position for the purposes of subsection (5)(b) if it contradicts any
of the following where they are in force at the time the self-assessment is made—
(a) a public ruling; or
(b) a private ruling issued by the Commissioner to the taxpayer.
(7) Despite subsection (5), the Commissioner or authorised officer may impose a late
payment interest in respect of a tax shortfall when the tax is not paid by the due date for
payment.
(8) For the purposes of this section, a statement made to an authorised officer
includes a statement made, in writing or orally—
(a) in an application, certificate, declaration, notification, return, objection, or
other document submitted or lodged under a tax law;
(b) in information required to be provided under a tax law;
(c) in a document provided to an authorised officer;
(d) in an answer to a question asked of a person by an authorised officer; or
(e) in a statement to another person with the knowledge or reasonable
expectation that the statement would be passed on to an authorized officer.
[Act No. 23 of 2019, s. 34.]

85. Tax avoidance penalty

If the Commissioner has applied a tax avoidance provision in assessing a taxpayer,
the taxpayer is liable for a tax avoidance penalty equal to double the amount of the tax
that would have been avoided but for the application of the tax avoidance provision.

86. Penalty for failing to comply with electronic tax system

(1) Where a tax law requires a taxpayer to issue an electronic tax invoice, submit a tax
return in electronic form or pay a tax electronically, and the taxpayer fails to comply with
that tax law, the Commissioner shall issue a notice in writing to the taxpayer requesting
the reasons for the noncompliance.
(2) Where the reasons given under subsection (1) do not satisfy the Commissioner,
the taxpayer shall be liable to a penalty of two times the tax due.
[Act No. 4 of 2023 s.64]
87. Penalties for failure to appear before the Commissioner
Any person who fails to appear before the Commissioner pursuant to a notice issued
by Commissioner under section 61 shall be liable to a penalty of—
(a) ten thousand shillings in case of an individual; and
 (b) one hundred thousand shillings for any other case.

88. Penalty in relation to fraudulent claim for refund

A person who fraudulently makes a claim for a refund of tax shall be liable to pay a
penalty of an amount equal to two times the amount of the claim.

88A Penalties for non-compliance with common reporting standards obligations

(1) A person who makes a false statement or omits any information required to be
included in an information return under section 6B, shall be liable to a penalty of one
hundred thousand shillings for each such false statement or omission to imprisonment for
a term not exceeding three years or to both unless, in the case of information required in
respect of another person, a reasonable effort was made by the person to obtain the
information from that other person.
(2) A reporting financial institution that fails to file an information return or a “nil”
return when required under section 6B shall be liable to pay a penalty of one million
shillings for each such failure.
(3) A person who fails to comply with a duty or obligation under section 6B shall be
liable, where no other penalty is prescribed, to a penalty of twenty thousand shillings, and
twenty thousand shillings for each day during which non-compliance continues for a
period not exceeding sixty days.
[Act No. 8 of 2021, s. 43]
89. General provisions relating to penalty

(1) Each penalty shall be calculated separately with respect to each section in this
Division.
(2) If the same act or omission imposes more than one penalty under a tax law on a
taxpayer, the Commissioner shall determine which penalty applies.
(3) A person shall be liable to a penalty only when the Commissioner notifies in
writing that person of a demand for the penalty setting out the amount of the penalty
payable and the due date for the payment being a date that is at least 30 days after the date
of the notification.
(4) Subsection (3) applies also to a penalty imposed under a tax law other than this
Act.
(5) A penalty payable by a person shall be due and payable on the date specified in
the notification under subsection (3).
(6) Deleted by Act No. 4 of 2023 s.65(a)
(7) Deleted by Act No. 4 of 2023 s.65(b)
(8) Deleted by Act No. 4 of 2023 s.65(c)
(9) This Act shall not preclude the imposition of penalty under any other tax law and
the same act or omission shall not be subject to—
(a) the imposition of a penalty under more than one provision of that other tax
law; or
 (b) both the imposition of a penalty and prosecution for an offence under that
other tax law.
[Act No. 38 of 2016, s. 44, Act No. 10 of 2018, s. 46, Act No. 4 of 2023 s, 65]

90. Offences relating to registration or licensing

(1) Subject to subsection (2), a person commits an offence if that person, without
reasonable excuse, does not apply for registration, deregistration or cancellation of
registration as required under a tax law.
(2) A person commits an offence if that person applies for deregistration or the
cancellation of registration when that person is still required to be registered under a tax
law.
(3) If a tax law, other than this Act, does not provide for an offence specified in
subsection (1) or (2) in relation to registration, deregistration or cancellation of
registration, this section shall apply.
(4) In this section, a reference to registration under a tax law includes licensing under
a tax law.
91. Offences relating to PINs

(1) A person commits an offence if that person uses a false PIN on a tax return or
other document used for the purposes of a tax law.
(2) A person who uses the PIN of another person shall be treated as having used a
false PIN, unless the PIN has been used in the circumstances specified in section 13(3).
(3) A person commits an offence if the person obtains a PIN using a false document,
a forged document or through fraud, misrepresentation or deceit.

92. Offences by tax agent

A tax agent shall have committed an offence when the tax agent—

(a) fails to notify the Commissioner as required under section 22(1); or

(b) contravenes the provisions of section 21;

(c) assists a taxpayer to create a tax avoidance scheme, or abets or aides a

taxpayer to evade tax.

93. Failure to maintain documents

(1) A person commits an offence if the person fails to keep, retain or maintain a
document that may be required to be kept, retained or maintained in accordance with a
tax law without reasonable excuse during a reporting period.
(2) A person commits an offence if the person deliberately prepares or maintains or
authorises another person to prepare or maintain false documents in relation to a tax law.
(3) A person commits an offence if the person falsifies or authorises another person
to falsify any in relation to a tax law.
 94. Failure to submit tax return or other document

(1) A person commits an offence if the person without reasonable cause fails to
submit a tax return or other document required under a tax law by the due date.
(2) If a person is convicted of an offence under subsection (1), the person, in addition
to any sanction imposed on him or her, shall furnish the tax return or other document
within the time that may be specified by the Court.

(3) This section shall apply if a tax law does not provide for an offence in relation to
the submission of a document other than a tax return required to be submitted under that
tax law.

95. Failure to pay tax

A person commits an offence if that person fails to pay tax by the due date.
96. False or misleading statements
(1) A person commits an offence when the person deliberately—
(a) makes a statement to an authorised officer that is false or misleading in a
material particular; or
(b) omits from a statement made to an authorised officer any matter or thing
without which the statement would be false or misleading in a material
particular.
(2) Section 84(8) shall apply in determining whether a person has made a statement
to an officer.
96A. Commissioner may seek interventions from relevant authorities
The Commissioner may seek the intervention of a relevant authority in the collection
of tax where a person who provides services over the internet or an electronic network
including through a digital marketplace has not fulfilled the person’s tax obligations.
97. Fraud in relation to tax
Any person who, in relation to a tax period, knowingly—
(a) omits from his or her return any amount which should have been included;
or
(b) claims any relief or refund to which he or she is not entitled; or
(c) makes any incorrect statement which affects his or her liability to tax; or
(d) prepares false books of account or other records relating to that other person
or falsifies any such books of account or other records; or
(e) deliberately defaults on any obligation imposed under a tax law, commits
an offence.
97A. Offence of impersonating an authorised officer
(1) A person who is not an authorised officer commits an offence if that person
assumes the name or designation of an authorised officer and performs or procures
the performance of any act which that person is not entitled to do.
 (2) A person convicted of an offence under subsection (1) shall be liable to
imprisonment for a term not exceeding three years.
[Act No. 4 of 2023, s. 66]
98. Offences relating to recovery of tax
(1) A person commits an offence when the person, without reasonable cause—
(a) contravenes section 17;
(b) does not provide security for payment of a tax as required by the
Commissioner under section 36;
(c) fails to rescue property distrained under section 41 or goods seized under
section 44;
(d) before, at or after any distress proceedings under section 41 or the seizure
of goods under section 44, staves, breaks or destroys the property that is
subject to the distress proceedings or the goods subject to the seizure order,
or destroys documents relating to such property or goods to prevent—
(i) the securing of the property or goods; and
(ii) the discovery of proof of the commission of an offence;
(e) Deleted by Act No. 8 of 2021 s. 45(b);
(f) Deleted by Act No. 8 of 2021 s. 45 (c);
(g) subject to subsection (2), does not comply with a notice issued under section
42;
(h) does not comply with a High Court order made under section 43;
(i) departs or attempts to depart from Kenya in contravention of a departure
prohibition order made under section 45; or
(j) does not pay a transferred tax liability as required under section 46.
(2) A person who notifies the Commissioner in writing under section 42(4) is in
compliance with a notice served on the person under section 42(2) until the
Commissioner serves the person with a notice section 42(5) cancelling or amending the
notice served under section 42(2) or rejecting the person's notice under section 42(4).

99. Offences relating to enforcement powers

(1) A person commits an offence when that person—
(a) fails to provide information or produce any document for examination as
required by the Commissioner under section 59(1)(a) or (b);
(b) fails to appear before the Commissioner or
(c) fails to answer any question put to the person by the Commissioner or
authorised officer in accordance with section 59(1)(c).
(2) A person commits an offence when the person, without reasonable excuse, fails
to provide reasonable facilities and assistance as required by section 60(3) (d), (e), and
(f), and (6).
[Act No. 8 of 2021, s. 46.]
100. Obstruction of authorised officer
A person commits an offence if the person hinders or obstructs the Commissioner or
an authorised officer in the performance of the Commissioner's or authorised officer's
duties under a tax law.
101. Aiding or abetting an offence
A person commits an offence if that person aids, abets, assists, incites or induces
another person to commit an offence under a tax law (referred to as the "principal
offence") and that person shall be liable for the same sanction as imposed for the
principal offence.

102. Offences by officers and staff of the Authority

(1) An authorised officer commits an offence when that officer—
(a) makes an entry that he or she knows or has reasonable cause to believe to
be false or does not believe to be true in any record, return, or other
document that he or she is required to keep or make;
(b) willfully refuses to do anything that he or she knows or has reasonable cause
to believe is required to be done by he or she under a tax law;
(c) interferes with any other person or process under a tax law in order to defeat
the provisions or requirements of that tax law;
(d) fails to do anything that the authorised officer is required to do to give effect
to the provisions of a tax law;
(e) without reasonable cause, acts or omits to act in breach of his or her duty
under a tax law;
(f) wilfully contravenes the provision of a tax law in order to give undue
advantage or favour to another person; or
(g) fails to prevent or report to the Authority or any other relevant authority, the
commission of an offence in contravention of a provision of a tax law.
(2) A person commits an offence if that person contravenes the provisions of section
6.
(3) In this section, "authorised officer" includes a person employed or engaged by
the Authority in any capacity and a former officer or employee of the Authority.

103. Offences by employees, agents, and companies

(1) If a person acting as an employee or an agent commits an offence under a tax law
that person's employer or principal shall be treated as having also committed the offence.
(2) If the person that commits an offence under a tax law is a company, the offence
shall be treated as having been committed by an individual who, at the time the offence
was committed, was—
(a) the chief executive officer, managing director, a director, company
secretary, treasurer or other similar officer of the company; or
(b) acting or purporting to act as the chief executive officer, managing director,
a director, company secretary, treasurer or other similar officer of the
company.
(3) Subsection (1) or (2) shall not apply to a person if—
 (a) the offence was committed without that person's consent or knowledge; and
(b) that person, having regard to the nature of that person's functions and all the
circumstances, has exercised reasonable diligence to prevent the
commission of the offence.
103A. Unauthorized access or improper use of computerized tax system.
(1). A person who—
(a) knowingly and without lawful authority, by any means, gains access to or
attempts to gain access to any computerized tax system;
(b) having lawful access to any computerized tax system, knowingly uses or
discloses information obtained from such system for a purpose that is not
authorised; or
(c) knowing that he is not authorized to do so, receives information obtained from
any computerized tax system, and uses, discloses, publishes, or otherwise
disseminates such information, commits an offence.
(2). A person convicted of an offence under subsection (1) shall be liable —
(a) in the case of a natural person, to imprisonment for a term not exceeding two
years, or to a fine not exceeding four hundred thousand shillings, or to both; or
(b) in the case of a body corporate, to a fine not exceeding one million shillings.
[Act No. 10 of 2018, s. 47.]
103B. Interference with computerized tax system
(1) A person who knowingly—
(a) falsifies any record or information stored in any computerized tax system;
(b) damages or impairs any computerized tax system; or
(c) damages or impairs any duplicate tape or disc or other medium on which any
information obtained from a computerized tax system is held or stored
otherwise than with the permission of the Commissioner,
commits an offence.
(2) A person convicted of an offence under subsection (1) shall be liable to
imprisonment for a term not exceeding three years, or to a fine not exceeding eight
hundred thousand shillings, or to both.
[Act No. 10 of 2018, s. 47.]
104. Sanctions for offences

(1) Subject to subsection (2) or (3), a person convicted of an offence under this Act
shall be liable to a fine not exceeding one million shillings or to imprisonment for a term
not exceeding three years, or to both. [Act No. 4 of 2023, s. 67]
(2) A person convicted of an offence under section 98(1) or section 102(1) is liable
to a fine not exceeding two million shillings or to imprisonment for a term not exceeding
five years, or to both.
(3) A person convicted of an offence under section 97 shall be liable to a fine not
exceeding ten million shillings or double the tax evaded, whichever is higher or to
imprisonment for a term not exceeding ten years, or to both.
 (4) A person convicted of an offence under section 92 shall liable to a fine equal to
double the tax evaded or to a fine not exceeding five million shillings whichever is higher
or to imprisonment for a term not exceeding five years, or to both.
[Act No. 10 of 2018, s. 48, Act No. 4 of 2023 s,67]
105. Payment of tax on conviction
Where a person is convicted of an offence under a tax law and for which taxes were
not paid the court may order the convicted person to make payment to the Commissioner
of the whole or such part as remains unpaid either in addition to, or in substitution of,
any other penalty.
106. Jurisdiction to try cases
(1) Despite any other written law and subject to subsection (2), a person charged
with the commission of an offence under a tax law may prosecuted in any place in Kenya
in which the person may be in custody for the offence as if the offence had been
committed in that place, and the offence shall be treated as having been committed in
that place.
(2) Nothing in subsection (1) shall preclude the prosecution, trial or punishment of
a person in any place in which, but for this section, the person might have been
prosecuted, tried or punished.
(3) Despite any other written law, an offence under this Act may be tried in the court
designated to try offences of corruption or economic crimes.
107. Authorised officer may appear on prosecution
(1) Despite any other written law, an authorised officer may appear in any court on
behalf of the Commissioner in proceedings in which the Commissioner is a party and,
subject to the direction of the Director of Public Prosecutions, that officer may prosecute
a person accused of committing an offence under a tax law.
(2) An authorised officer conducting a prosecution in accordance with subsection (1)
shall have all the powers of a public prosecutor under the Office of the Director of Public
Prosecutions Act (Cap. 6B).
108. Tax to be paid despite prosecution
The amount of any tax or late payment interest due and payable under a tax law shall
not be abated by the prosecution of a taxpayer for an offence under a tax law.
109. Power of the Commissioner to compound offences
(1) The Commissioner may, where he is satisfied that a person has committed an
offence under a tax law in respect of which a penalty of a fine is provided, or in respect
of which anything is liable to forfeiture, compound the offence and may order that person
to pay such sum of money, not exceeding the amount of the fine to which he or she would
have been liable if he or she had been prosecuted and convicted for the offence, as the
Commissioner may think fit and the Commissioner may order anything liable to
forfeiture in connection therewith to be condemned:
Provided that the Commissioner shall not exercise his or her powers under this section
unless the person admits in writing that he or she has committed the offence and requests
the Commissioner to deal with the offence under this section.
(2) For the purposes of subsection (1), the Commissioner shall constitute a committee
of not less than three officers to consider applications for the compounding of offences.
 (3) An order by the Commissioner in accordance with this section shall—
(a) be in writing under the hand of the Commissioner and the offender, and
witnessed by an officer;
(b) specify the name of the offender, the offence committed, the sum of
money ordered by the Commissioner to be paid, and the date or dates
on which payment is to be made;
(c) have a copy of the written admission referred to under subsection (2)
attached;
(d) be served on the offender;
(e) be final and not be subject to appeal; and
(f) on production in any court, be treated as proof of the conviction of the
offender for the offence specified, and may be enforced in the same
manner as a decree of a court for the payment of the amount stated
therein.
(4) If the Commissioner compounds an offence under this section, the offender shall
not be liable for prosecution or penalty in respect of same act or omission, the subject of
the compounded offence except with the express consent of the Director of Public
Prosecutions.

PART XIII — MISCELLANEOUS PROVISIONS

110. Spent
111. Protection of officers
No officer shall be personally liable for any act or omission done or committed in
good faith in the performance of his or her functions under a tax law unless, having
regard to the circumstances of the case, such act or omission is found to be—
(a) done or committed wilfully or dishonestly by such officer;
(b) attributable to the negligence of such officer;

(c) done or committed by such officer in contravention of any provision of a

tax law or regulations made there under.
[Act No. 8 of 2021, s. 47.]
112. Regulations
(1) The Cabinet Secretary may make Regulations for the better carrying into effect
of the provisions of this Act.
(2) Without prejudice to the generality of subsection (1), the Regulations may—
(a) prescribe conditions and procedures for registration;
(b) provide for the submission of returns and the place at which returns are to
be submitted and tax to be paid;
(c) prescribe offence and penalties thereto;
(d) provide rules and procedure for collection of unpaid tax by distrait;
(e) prescribe any other thing required to be prescribed.
113. Transitional and saving
(1) Subject to this section, this Act shall apply to any act or omission that occurred
or is occurring for which no prosecution has been commenced, or any assessment made
against which no appeal has been made, before the commencement date.
(2) Any appeal or prosecution commenced before the commencement date may be
continued and disposed of as if this Act had not come into force.
(3) If the period for any application, appeal or prosecution had expired before the
commencement date, nothing in this Act shall be treated as having enabled the
application, appeal, or prosecution to be made under this Act by reason only that a longer
period is specified in this Act.
(4) Any tax liability that arose before the commencement date may be recovered
under this Act despite any action already taken for the recovery of the tax.

FIRST SCHEDULE
TRANSACTIONS FOR WHICH A PIN IS REQUIRED
[Section 12.]
(1) Registration of titles and stamping of instruments.
(2) Approval of development plans and payment of water deposits.
(3) Registration of motor vehicles, transfer of motor vehicles, and licensing of motor
vehicles.
(4) Registration of business names.
(5) Registration of companies.
(6) Underwriting of insurance policies.
(7) Trade licensing.
(8) Importation of goods and customs clearing and forwarding.
(9) Payment of deposits for power connections.
(10) All contracts for the supply of goods and services to Government Ministries and
public bodies.
(11) Opening accounts with financial institutions and investment banks.
(12) Registration and renewal of membership by professional bodies and other
licensing agencies.
(13) Registration of mobile cellular pay bill and till numbers by telecommunication
operators.
14. Carrying out business over the internet or an electronic network including through
a digital marketplace.
15. Registration of a trust
[Section 12, Act No. 23 of 2019, s. 35, Act No. 8 of 2021, s. 48, Act No. 22 of 2022, s.
45.]
 SECOND SCHEDULE
CONSEQUENTIAL AMENDMENTS
[Section 101, Act No. 38 of 2016, s. 45.]

1. This Schedule amends the Income Tax Act, the Kenya Revenue Authority Act, 1995,
and the Value Added Tax Act, 2013
2. The Income Tax is amended in Part VI by deleting sections 35 (6B), 37 (6) and 51A
(a).
3. The Income Tax Act is amended in Part VII by deleting sections 55 and 56.
4. The Income Tax Act is amended in Part VIII by deleting sections 69, 70, 71, 72A,
74B, 75, 75B, 77, 78, 79, 80, and 81.
5. The Income Tax Act is amended in Part X by deleting sections 84 to 91A.
6. The Income Tax Act is amended in Part XI by deleting sections, 92(6), 92(7), 92(8),
93 to 96A, and 100 to 103.
7. The Income Tax Act is amended in Part XII by deleting sections 110 to 121.
8. The Income Tax Act is amended in Part XIII by deleting sections 122 to 126.
9. The Income Tax Act is amended in Part XIV by deleting sections 127 to 129 and
section 132.
10. The Kenya Revenue Authority Act, 1995, is amended by deleting sections 24, 24A
and 25.
11. The Value Added Tax Act, 2013, is amended in Part II by deleting sections 3 and 4.
12. The Value Added Tax Act, 2013, is amended in Part IV by deleting section 9.
13. The Value Added Tax Act, 2013, is amended in Part VII by deleting sections 20, 21,
and 23 to 29.
14. The Value Added Tax Act, 2013, is amended in Part VIII by deleting section 32.
15. The Value Added Tax Act, 2013, is amended in Part X by deleting sections 38 and
39.
16. The Value Added Tax Act, 2013, is amended in Part XI by deleting sections 45 and
46.
17. The Value Added Tax Act, 2013, is amended in Part XII by deleting sections 47, 48
and 49.
18. The Value Added Tax Act, 2013, is amended in Part XIII by deleting section 50.
19. The Value Added Tax Act, 2013, is amended in Part XIV by deleting section 51.
20. The Value Added Tax Act, 2013, is amended in Part XV by deleting sections 52 to
59.
21. The Value Added Tax Act, 2013, is amended in Part XVI by deleting sections 60
and 61.
22. The Value Added Tax Act, 2013, is amended in Part VIII by deleting section 30 [Act
No.22 of 2022 s. 28]