Rashid Abubakar @MountKenyaTimes
Treasury Cabinet Secretary Ukur Yatani has gazetted the Finance Act, 2021 days after assent by President Uhuru Kenyatta.
In the gazette notice, some sections of the new law got into effect yesterday (July 1) while others will begin in January 1, 2022.
“This Act may be cited as the Finance Act, 2021, and shall come into operation, or be deemed to have come into operation, as follows— (a) sections 9, 10, 13, 14, 19, 21(a), 21(b), 21(e), 40, 50, 58, 60, 73, 75, and 76, on the 1st January 2022,” the notice stated.
The Financial Act of 2021 introduces amendments to various tax-related Acts of Parliament (Income tax, VAT, Exercise Duty, Tax Procedures and Miscellaneous fees and Levies) as well as other related statutes in the public finance sector including the Insurance Act, the Capital Markets Act, the Retirements Benefits Act, the Central Depositories Act, and the Stamp Duty Act.
According CS Yatani, the Bill proposed by Treasury, seeks to help create a legal and policy framework to help the government achieve its medium-term budget goals.
President Kenyatta in accordance with Article 115(1)(a) of the Constitution assented to four Parliamentary Bills on June 29.
The bills include the Appropriation Bill 2021, the Second Supplementary Appropriation Act 2021, the County Allocation of Revenue Act, and the Finance Bill 2021.
The Appropriation Act, 2021 authorises the issuance of funds from the Consolidated Fund in furtherance of the Budget for the Financial Year 2021/2022.
It also facilitates expenditure of the gross total budget of Sh1.9 trillion for the National Executive, Parliament, and the Judiciary, which comprises a total of Sh1.2 trillion for recurrent expenditure and a total of Sh668.37 billion for development expenditure.
The Second Supplementary Appropriation of FY 2020/2021 achieves a net reduction of Sh8.17 billion; which comprises a reduction of Sh16.65 billion for recurrent expenditure and an increment of Sh8,48 billion for development expenditure.
State House Spokesperson Kanze Dena explained that following the assent, Kenya’s public finance sector should be on a stronger foundation to spur economic growth, fund critical development projects within the Big Four Agenda and other seminal initiative
Ms Dena said the legislative interventions are expected to boost the ease of doing business for enterprises both large and small.
She further noted that the legislative will facilitate expeditious and enhanced revenue collection, and support more effective service delivery and expedited implementation of programmes that continue to make a difference in the lives of all Kenyans.