Federation of Employers seeks urgent KRA clarification over July taxes » Capital News

NAIRIOBI, Kenya, Aug 10 –The Federation of Kenya Employers (FKE) has sought an “urgent clarification” from the Kenya Revenue Authority on the status of July tax payments following a Court of Appeal ruling declaring the Finance Act 2023 unconstitutional.

In a letter to the 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 failure to align its systems with the court’s judgment.

The ruling, delivered on July 31, declared the Finance Act 2023 unconstitutional, rendering its provisions null.

FKE CEO Jacqueline Mugo highlighted the urgency of the situation, noting that Friday, August 9, 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,” Mugo stated in a letter dated August 9.

The organization 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 declared amendments made to various tax laws — including 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.

The ruling effectively upheld the nullification of the then Finance Bill 2023 by a bench of the High Court from where the appeal arose.

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