HomeCountiesProposed law seeks to control runaway county taxes

Proposed law seeks to control runaway county taxes

A new Bill has been introduced in the Kenyan National Assembly called the County Governments (Revenue Raising Process) Bill 2023, which aims to regulate how county governments impose taxes, fees, levies and other charges.

If passed, the National Treasury Cabinet Secretary will regulate the county government tax, and the fees charged for services must not exceed the cost of providing them.

The bill establishes an Inter-Agency Transitional Committee (IATC) led by the Cabinet Secretary for National Treasury with the mandate of reviewing all fees and charges imposed by county governments.

The committee will exist for two years or more and will consist of the National Treasury, CRA, Intergovernmental Relations Technical Committee (IGRTC), Council of Governors (CoG) and KRA.

Some senators and the Council of Governors have expressed mixed reactions to the proposed legislation, particularly the proposal to have the Kenya Revenue Authority (KRA) collect tax for the counties.

The bill will also review the taxes imposed on goods like livestock on transit, sand, building stones, murram and soil that move across county borders.

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