Uhuru finally assents to the Finance Bill 2019

The new law also introduces tax on income raised from the digital marketplace.

In Summary

• The new law also introduces tax on income raised from the digital marketplace as a measure of ensuring equity in taxation.

• As part of government efforts to support the affordable housing pillar of the Big 4 Agenda, the Finance Act 2019 exempts the National Housing Development Fund from income tax.

President Uhuru Kenyatta signing into law the Finance Bill./FILE
President Uhuru Kenyatta signing into law the Finance Bill./FILE

President Uhuru Kenyatta has signed into law the Finance Bill 2019.

The Finance Act 2019, among other provisions, repeals section 33b of the Banking Act that provides for the capping of bank interest rates.

The new law also introduces tax on income raised from the digital marketplace as a measure of ensuring equity in taxation.

The repeal of section 33b of the Banking Act is expected to enhance access to credit by the private sector especially the Micro, Small and Medium Enterprises (MSME's) as well as cut out exploitative shylocks and other unregulated lenders.

The Finance Act 2019 exempts the National Housing Development Fund from income tax.

Present during the signing ceremony were Speaker of the National Assembly Justin Muturi, Head of Public Service Joseph Kinyua, National Treasury CS Ukur Yatani and Attorney General Paul Kihara.

Last week, Uhuru vetoed the decision by MPs to retain the interest rate cap in the Finance Bill, 2019.

In a Memo sent to Parliament, Uhuru rejected the Finance Bill asking the lawmakers to repeal section 33B of the Banking Act.

The National Assembly failed to raise a two-thirds majority to overturn Uhuru's memorandum and retain the cap which was introduced on September 14, 2016.