NAIRIOBI, Kenya, Aug 10 – The Federation of Kenya Employers (FKE) has sought the clarification of the Kenya Revenue Authority on the status of July 2024 tax payments following a recent Court of Appeal ruling that declared the Finance Bill 2023 unconstitutional.
In a letter to KRA Commissioner General Humphrey Wattanga, FKE expressed concern that taxpayers, including its members, are currently unable to remit taxes as required due to KRA’s systems not being updated in line with the Court’s judgment.
The ruling, delivered on July 31, declared the Finance Act 2023 unconstitutional, rendering its provisions null from that date forward.
FKE’s CEO, Jacqueline Mugo, highlighted the urgency of the situation, noting that August 9, 2024, marked the deadline for remitting July taxes.
She emphasized that without clear guidance from the KRA, employers and taxpayers risk facing penalties for non-compliance.
“The Federation of Kenya Employers regrets that our members and indeed all taxpayers in Kenya are unable to remit taxes in accordance with the judgment for reasons that the Kenya Revenue Authority has not yet configured its systems to comply with the Court of Appeal ruling,” read the letter by Mugo in part.
The organization has urged the taxman to clear the air to ensure that taxpayers meet their obligations without incurring unnecessary penalties.
A three-judge bench comprising Justices Kathurima M’inoti, Agnes Murgor, and John Mativo had in July found that the amendments made to various tax laws—such as the Income Tax Act, Value Added Tax Act, Excise Duty Act, Retirement Benefits Act, and Export Processing Zones Act—post-public participation were unconstitutional.
The judges argued that these amendments were not subjected to fresh public participation, thus violating constitutional provisions.
