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{
    "id": 910355,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/910355/?format=api",
    "text_counter": 323,
    "type": "speech",
    "speaker_name": "Mr. Henry Rotich",
    "speaker_title": "The Cabinet Secretary for National Treasury",
    "speaker": {
        "id": 13142,
        "legal_name": "Henry Rotich",
        "slug": "henry-rotich"
    },
    "content": "that the enterprises may be facing. In this regard, I propose to introduce an amnesty on the tax penalties and interest on any outstanding tax for two years prior to the listing for SMEs that list under the GEMS program to encourage them to list and clear their tax records. The principal taxes shall however be paid in full. The Government is keen to position Kenya as a prime financial centre in East and Central Africa. The first step to achieve this is to make our financial services accessible to both Kenyans and our visitors. Currently, the law requires one to have a KRA PIN before opening a bank account. This poses challenges to visiting foreigners, privileged persons and foreign investors investing in our financial markets. In this regard, I propose to amend the Tax Procedures Act to empower the Commissioner to grant exemption from the PIN requirement, in certain circumstances, when opening a bank account. Last year, through the Finance Act 2018, I introduced an anti-adulteration levy on illuminating kerosene in order to check the menace of adulteration of fuel. In addition to reducing the adulteration of fuel products, this levy has increased the cost to manufacturers of paint and resin who use illuminating kerosene as inputs. In order to address this problem, I propose to introduce a provision, under the Miscellaneous Fees and Levies Act, 2016 that will allow manufacturers of paint and resin to get refund on the levy paid. In order to further cushion our local manufacturers, and facilitate the growth of the sector, I propose to reduce the Import Declaration Fee (IDF) on intermediate goods and raw materials used by manufacturers from 2 per cent to 1.5 per cent while increasing the rate on finished goods from 2 per cent to 3.5 per cent. In addition, I am proposing to raise the Railway Development Levy for finished products from 1.5 percent to 2.0 percent to further cushion our manufacturers. Raw hides and skins are currently subject to export levy. This measure has had a significant impact in increasing value addition in the sector. However, the levy does not apply to tanned and crust hides and skins which are also being exported at the expense of value addition. In order to further accelerate value addition and promote the manufacturing of local leather products, I propose to impose export levy on tanned and crust hides and skins at 10 per cent. The Capital Markets Authority is responsible for promoting, regulating and facilitating the development of an orderly, fair and efficient capital market in Kenya. In order to effectively deliver on this mandate, the Authority requires powers to sanction the players in the market in case of a default. In this regard, I have proposed amendments to the Capital Markets Act to empower the Authority to enforce penalties and sanctions on market players who violate laid down rules and procedures. The Policy Holder’s Compensation Fund was established to cushion holders of insurance policies in the event that insurance companies are unable to discharge their services. However, the Fund has not been utilised since its establishment in 2004, despite 4 insurers going under statutory management. This is because the current provisions of the law only allow compensation to claimants of an insolvent insurer. To address these challenges, I have proposed amendments to the Insurance Act and the Regulations to bring clarity and enable the Fund to be utilised to compensate claimants. The boda-boda transport has become an important sector in our economy. It is one of the largest employers of our youth and also provides cheap and convenient transport for Kenyans. Despite the above benefits, this mode of transport has proven to be very risky to the riders, passengers and even pedestrians. Further, the accident victims who are mostly from the lower cadres of the society are left to seek financial assistance for treatment from friends and relatives since these boda-bodas are not insured. In order to mitigate against these risks, I propose to The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}