January 2008 (L.N's 1-11)

1-Constitution of Kenya New Session of Parliament Proclamation, 2008

1-Constitution of Kenya New Session of Parliament Proclamation, 2008

7th January, 2008

LEGAL NOTICE No. 1

THE CONSTITUTION OF KENYA

NEW SESSION OF PARLIAMENT

PROCLAMATION

By His Excellency the Honourable Mwai Kibaki, President and Commander-in-Chief of the Armed Forces of the Republic of Kenya.

IN EXERCISE of the powers conferred by section 58(1) of the Constitution of Kenya, I appoint that a new session of Parliament shall be held at Parliament Buildings in Nairobi, and shall begin on the 15th January, 2008 at 2.30 o’clock in the afternoon.

Given under my hand and the public seal of Kenya on the 7th January, 2008

MWAI KIBAKI,
President.

2-Income Tax Act (Kenya Broadcasting Corporation Exemption), 2008

2-Income Tax Act (Kenya Broadcasting Corporation Exemption), 2008

11th January, 2008

LEGAL NOTICE N0. 2

THE INCOME TAX ACT
(Cap. 470)

EXEMPTION

IN EXERCISE of the powers conferred by section 13(2) of the Income Tax Act, the Minister for Finance directs that the lump sum retirement benefits received by twenty three (23) the employees of the Kenya Broadcasting Corporation who retired with effect from 1st July, 2007 and 1st October, 2007, respectively, under the Voluntary Early Retirement Scheme approved by the Government on 4th May, 2006, shall be exempt from income tax under the Act:

Provided that -

(a) the exemption shall not apply to other pension benefits paid to such employees;

(b) an employee who opts who opts for voluntary early retirement shall not be eligible for re-employment with the Kenya Broadcasting Corporation, in any capacity or under any terms whatsoever before the expiry of three (3) years from the date of such retirement;

(c) the Kenya Broadcasting Corporation shall, in addition to complying with any directions that the Commissioner of Income Tax may give, furnish the Commissioner, in respect of every retiring employee, the name, the date of retirement from the Kenya Broadcasting Corporation, the amount paid and a copy of the letter to the employee confirming such retirement.

Dated the 20th November, 2007.

AMOS KIMUNYA,

Minister for Finance.

3-Co-Operative Societies Act (Amendment) Rules, 2007

3-Co-Operative Societies Act (Amendment) Rules, 2007

11th January, 2008

LEGAL NOTICE NO. 3

THE CO-OPERATIVES SOCIETIES ACT
(Cap. 490)

IN EXERCISE of the powers conferred by section 91 of the Co-operative Societies Act, the Minister for Co-operative Development and Marketing makes the following Rules: -

THE CO-OPERATIVE SOCIETIES (AMENDMENT) RULES, 2007

1.  These Rules may be cited as the Co-operative Societies (Amendment) Rules, 2007.

L.N. 123/2004.
2.  Rule 17 of the Co-operative Societies Rules, herein after referred to as Principal Rules is amended by deleting paragraph (2) and renumbering paragraph (3) as paragraph (2).

3.  Rule 23 of the Principal Rules is amended by deleting paragraph (1) and renumbering the paragraphs.

Dated the 26th October, 2007.

P. N. NDWIGA,
Minister for Co-operative Development and Marketing.

4-The Banking Act (Equity Bank Limited) Exemption, 2008

4-The Banking Act (Equity Bank Limited) Exemption, 2008

11th January, 2008

LEGAL NOTICE No. 4

THE BANKING ACT
(Cap. 488)

EXEMPTION

IN EXERCISE of the powers conferred by section 53 of the Banking Act, the Minister for Finance exempts Helios EB Investors, L.P. from the provisions of section 13(3) until 12th July, 2016 in connection with its acquisition and holding of ordinary shares in Equity Bank Limited and revokes Legal Notice No. 398 of 2007.

Dated the 18th December, 2007.

AMOS KIMUNYA,
Minister for Finance.

5-The Income Tax (Turnover Tax) Rules, 2007

5-The Income Tax (Turnover Tax) Rules, 2007

11th January, 2008

LEGAL NOTICE NO. 5                      

THE INCOME TAX ACT
(Cap. 470)

IN EXERCISE of the powers conferred by section 12C of the Income Tax Act, the Minister for Finance makes the following Rules: -

THE INCOME TAX (TURNOVER  TAX) RULES, 2007

1. Citation and commencement
These rules may be cited as the Income Tax (Turnover Tax) Rules, 2007 and shall come into operation on the 1st January, 2008.

2. Interpretation.
In these Rules, unless the context otherwise requires –

“income from business” includes gross receipts, gross earnings, revenue, takings, yield, proceeds or other income chargeable to tax under section 12C.

“person” includes partnership;

“return of income” means a return of income furnished by a person under rule 9;

“tax period” means every three calendar months commencing 1st January every year;

“turnover tax” means tax payable under section 12C of the Act.

3.  Persons liable to turnover tax.
(1) Any person whose income from business exceeds five hundred thousands shillings and does not exceed five million shillings in a year of income shall be liable to pay turnover tax.

(2) Paragraph (1) of this rule shall not apply to –

(a) any person whose annual income from business does not exceed five hundred thousand shillings per year;

(b) any person whose income is exempt from tax under the First Schedule to the Act;

(c) any person whose income is subject to withholding tax as a final tax.

4.  Election to be excluded from turnover tax.
(1) A person may elect to be exempt from the provisions of section 12C of this Act.

(2) A person who elects to be exempted shall make an application for exemption in writing to the Commissioner.

(3) Where the Commissioner approves the application for exemption, under paragraph (2), a person who has been exempted shall be subject section 3 of the Act;

(4) The exemption approved by the Commissioner shall take effect in the subsequent year of income.

5. Turnover tax as a final tax.
Any income from a business that is subject to turnover tax shall not be liable to any other tax under this Act.

6. Registration.
(1) A person whose income from business does not exceed or is not expected to exceed five million shillings per annum shall be required to apply for turnover tax registration in the prescribed form.

(2) Notwithstanding paragraph (1), a person whose income from business does not exceed five hundred thousand shillings per annum shall not apply for registration.

(3) Where the Commissioner is satisfied that a person is required to be registered, the Commissioner shall issue a certificate of registration in the prescribed form,

(4)  A person whose income from business falls below five hundred thousand shillings in any year of income shall apply to the Commissioner for de-registration.

(5) Where the Commissioner is satisfied that the income of an applicant has fallen below five hundred thousand shillings, the Commissioner shall de-register that person.

7.  Change of status.
(1) Where the income from the business of a person registered under rule 6 exceeds five million shillings during a year of income, that person shall notify the Commissioner of the change of status.

(2) Where the commissioner is satisfied by the notification under paragraph (1), the Commissioner shall grant approval for the change.

(3) The approval granted by the Commissioner under paragraph (2) shall be effected in the subsequent year of income.

8.  Keeping of records.
(1) A person registered under rule 6 shall be to keep records necessary for the determination and ascertainment of tax, including daily sales summary in a prescribed form and any other document or record that the commissioner may from time to time direct to be maintained having regard to the type and nature of the business being undertaken.

(2) Notwithstanding paragraph (1), where a business is in possession of an Electronic Tax Register records as provided under the Value Added Tax Act (Electronic Tax Register) Regulations, 2004, the records shall be sufficient.

9.  Submission of returns and payment of Tax.
(1) A person subject to turnover shall calculate the tax due, remit the tax due to the commissioner by cash or bank guaranteed cheques or electronic fund transfers and submit a return in the prescribed form, in each tax period, to the commissioner on or before 20th of the month following the end of the tax period.

(2) A person may remit the tax due on monthly basis and offset the tax paid in the tax return.

(3) Where a business does not have income chargeable to turnover tax in any tax period, the business shall submit a nil return.

10.  Penalties and interest.
(1) Any person who fails to submit a tax return under regulation (9) is liable to a default penalty of two thousand shillings.

(2) Any person who submits a return within the required period, but fails to pay the tax due is liable to a default penalty of two thousand shillings.

(3) Any person who fails to pay tax due, or part thereof, under rule 9 is liable to pay interest at the rate of two per centum per month, on the unpaid tax.

(4) The Commissioner –

(a) may remit whole or part of any penalty or late payment interest in accordance with the provisions of section 94 of this Act.

(b) shall have the powers conferred under section 123 of this Act, to refrain from assessing to tax or recovering tax any person liable to turnover tax.

11. Inspection of records.
For purposes of obtaining full information in respect of accounting for turnover tax, the commissioner may by notice require any person to –

(a) produce books and records relating to the calculation of turnover tax.

(b) appear at such time and place as may be specified in the notice.

12.  Appointment of Agents.
For purposes of collection, recovery and enforcement of tax, the Commissioner may appoint any person under section 96 of the Act to be an agent.

13. Capital allowance.
No expenditure or capital allowances shall be granted against the turnover tax.

14.  Dispute resolution.
Any dispute arising from the administration of these Rules as regards any assessment to tax shall be dealt with in accordance with the provision of section 84 of the Act.

Dated the 24th December, 2007

AMOS KIMUNYA,
Minister for Finance.

6-Labour Institutions Act (Commencement), 2008

6-Labour Institutions Act (Commencement), 2008

11th January, 2008

LEGAL NOTICE No. 6

THE LABOUR INSTITUTIONS ACT
(No. 12 of 2007)

COMMENCEMENT

IN EXERCISE of the powers conferred by section 2 of the Labour Institutions Act, 2007, the Minister for Labour and Human Resource Development appoints the 20th December, 2007, as the date on which the Act shall be deemed to have come into operation.

Dated the 8th January, 2008.

N.W. KULUNDU
Minister for Labour and
Human Resource Development.

7-Work Injury Benefits Act Commencement, 2008

7-Work Injury Benefits Act Commencement, 2008

11th January, 2008

LEGAL NOTICE NO. 7

THE WORK INJURY BENEFITS ACT
(No. 13 of 2007)

COMMENCEMENT

IN EXERCISE of the powers conferred by section 1 of the Work Injury Benefits Act, 2007, the Minister for Labour and Human Resource Development appoints the 20th December, 2007, as the date on which the Act shall be deemed to have come into operation.

Dated the 8th January, 2008.

N.W. KULUNDU
Minister for Labour and
Human Resource Development.

8-The Employment Act Commencement, 2008

8-The Employment Act Commencement, 2008

11th January, 2008

LEGAL NOTICE NO. 8

THE EMPLOYMENT ACT
(No. 11 of 2007)

COMMENCEMENT

IN EXERCISE of the powers conferred by section 1 of the Employment Act, 2007, the Minister for Labour and Human Resource Development appoints the 20th December, 2007, as the date on which the Act shall be deemed to have come into operation.

Dated the 8th January, 2008.

N. W. KULUNDU,
Minister for Labour and
Human Resource Development.

9-Constitution of Kenya Prorogation of Parliament, 2008

9-Constitution of Kenya Prorogation of Parliament, 2008

16th January, 2008

LEGAL NOTICE NO. 9

THE CONSTITUTION OF KENYA

PROROGATION OF PARLIAMENT

PROCLAMATION

By His Excellency the Honourable Mwai Kibaki, President and Commander-in-Chief of the Armed Forced of the Republic of Kenya.

IN EXERCISE of the powers conferred by section 59(1) of the Constitution of Kenya, I prorogue Parliament with effect from the 16th January, 2008.

Given under my hand and the public seal of Kenya on the 16th January, 2008.

MWAI KIBAKI,
President.

11-Government Financial Management Act (Humanitarian Fund for Mitigation of Effects and Resettlement of Victims of Post-2007 Election Violence) Regulations, 2008

11-Government Financial Management Act (Humanitarian Fund for Mitigation of Effects and Resettlement of Victims of Post-2007 Election Violence) Regulations, 2008

30th January, 2008

LEGAL NOTICE No. 11

THE GOVERNMENT FINANCIAL MANAGEMENT ACT, 2004
(No. 5 of 2004)

IN EXERCISE of the powers conferred by sections 26 and 35 of the Government Financial Management Act, 2004 the Minister for Finance makes the following Regulations: -

THE GOVERNMENT FINANCIAL MANAGEMENT (HUMANITARIAN FUND FOR MITIGATION OF EFFECTS AND RESETTLEMENT OF VICTIMS OF POST-2007 ELECTION VIOLENCE) REGULATIONS, 2008

1.  These Regulations may be cited as the Government Financial Management (Humanitarian Fund for Mitigation of Effects and Resettlement of Victims of Post-2007 Election Violence) Regulations, 2008.

2.  In these Regulations, unless the context otherwise requires –

“Board” means the Advisory Board constituted under regulation 6;

“Fund” means the Humanitarian Fund for Mitigation of Effects and Resettlement of Victims of Post-2007 Election Violence established under regulation 3;

“Minister” means the Minister for the time being responsible for special programmes; and

“victim” means a person adversely affected by the post-2007 election violence as the Board may determine.

3. (1) There is hereby established a Fund to be known as the Humanitarian Fund for Mitigation of Effects and Resettlement of Victims of Post-2007 Election Violence.

(2) The object and purpose of the Fund is to provide ex gratia funding for –

(a)  the re-settlement of persons displaced as a result of post-2007 election violence;

(b) the replacement of basic household effects destroyed as a result of post-2007 election violence;

(c) enabling the victims of the post-2007 election violence re-start their basic livelihood;

(d) the reconstruction of basic housing, rehabilitation of community utilities and institutions destroyed as a result of post 2007 election violence.

4.  The Fund shall consist of –

(a) monies appropriated by Parliament;

(b) grants and donations.

5.  The initial capital of the Fund shall be Kshs. 1 billion.

6.  (1) There is hereby established a Board to be known as the Advisory Board which shall consist of –

(a) the Permanent Secretary of the Ministry for the time being responsible for special programmes;

(b) the Permanent Secretary of Ministry for the time being responsible for finance;

(c) the Permanent Secretary of Ministry for the time being responsible for lands; and

(d) four other persons appointed by the President, one of whom shall be the chairperson.

(2)  The Board shall –

(a) report to the Minister for the time being responsible for special programmes;

(b) advise the Minister generally for the effective operations of the Fund.

7. The expenditure incurred on the Fund shall be on the basis of work programmes and cost estimates which shall be prepared by the Permanent Secretary of the Ministry for the time being responsible for special programmes in consultation with the Board.

8. (1) The Permanent Secretary of the Ministry for the time being responsible for special programmes shall –

(a) open and operate a bank account at a bank to be approved by the Treasury;

(b) supervise and control the administration of the Fund;

(c) consult with the Board on matters relating to the administration of the Fund;

(d) cause to be kept books of accounts and other books and records in relation to the Fund of all activities and undertakings financed from the Fund;

(e) prepare, sign and transmit to the Controller and Auditor-General, in respect of each financial year and within three months after the end thereof, a statement of accounts relating to the Fund and showing the expenditure incurred from the Fund, and such details as the Minister for the time being responsible for finance may from time to time direct, in accordance with the provisions of the Public Audit Act, 2003; and

(f) furnish such additional information as he may deem to be proper and sufficient for the purpose of examination and audit by the Controller and Auditor-General in accordance with the provisions of the Public Audit Act, 2003.

(2) Every statement of account shall include details of the balance between the assets and liabilities of the Fund, and shall indicate the financial status of the Fund as at the end of the financial year concerned.

9. Existing Government financial, audit and procurement regulations and procedures shall apply in the administration of the Fund.10.  In the event of winding up of the Fund, the cash balances shall be transferred to the Exchequer while other assets of the Fund shall be transferred to the Government.

Dated the 30th January, 2008.

AMOS KIMUNYA,

Minister for Finance.