In a significant move aimed at easing financial burdens on its citizens and promoting economic growth, the Kenyan government has announced a waiver of penalties on pending taxes that had accrued until January 1 of this year.
President William Ruto made the official declaration on a Monday, emphasizing that this decision aligns with the government’s commitment to fostering a fair and inclusive economy. “Taxpayers with principal tax debt incurred before January 1, 2023, can therefore take advantage of this opportunity,” stated President Ruto.
The amnesty program, as outlined by the Head of State, is designed to provide relief to taxpayers who have been facing financial challenges due to unpaid taxes. By doing so, it is expected to contribute significantly to economic growth and inclusivity for all Kenyan citizens.
President Ruto highlighted that the Finance Act of 2023 introduces a taxpayer amnesty program covering penalties and interest accrued as of December 31, 2022. This initiative marks a vital step towards ensuring that the tax system is both supportive and equitable for all Kenyan taxpayers.
President Ruto made these announcements during the official launch of the Central Bank of Kenya (CBK) Dhow Central Securities Depository, a groundbreaking digital facility that promises to revolutionize Kenya’s financial markets.
Describing the advantages of the new digital system, President Ruto noted, “The transformation lies in the fact that the new system delivers convenience, efficiency, and speed, without compromising security, and enhances security and transparency.”
One of the notable changes brought about by this digital system is the elimination of barriers for Kenyan citizens looking to engage in financial market trading. Previously, investors had to physically visit CBK’s head or branch offices to undergo a laborious manual process to open a Central Securities Depository (CSD) account. This process could take up to 14 days, creating inefficiencies and delays.
Under the new digital platform, investors seeking to invest in Treasury bills and bonds will no longer be required to make physical visits to CBK. Instead, all payments for Treasury bills and bonds will be conducted via commercial banks, streamlining the process and enhancing efficiency.
Existing investors will be seamlessly transferred to this new digital platform, ensuring a smooth transition for all stakeholders.
READ ALSO:TikTok Gifts, Their Costs & How Kenyans Are Earning Thousands
