Relief as Ruto waives penalty on pending taxes

The government has announced a waiver of penalties on pending taxes that accrued until January 1, this year.

Making the declaration Monday, President William Ruto said the move will help alleviate financial burdens as well as align it with the government's commitment to a fair and inclusive economy.

"Taxpayers with principal tax debt incurred before January 1, 2023, can therefore take advantage of this opportunity," Ruto said.

According to the Head of State, the amnesty programme will assist taxpayers facing financial challenges related to unpaid taxes, thus fostering economic growth and inclusivity for all Kenyan citizens.

The Finance Act 2023, he noted, introduces a taxpayer amnesty programme for penalties and interest accrued as of December 31, 2022.

Ruto spoke when he officially launched the Central Bank of Kenya (CBK) Dhow Central Securities Depository.

The digital facility, Ruto said, will eliminate barriers for Kenyans to trade in the financial market.

"The transformation lies in the fact that the new system delivers convenience, efficiency and speed, without compromising security, and enhances security and transparency," he said.

Ruto pointed out that with the new innovation, investors will longer need to physically visit CBK's head or branch offices to undergo the manual process of opening a CSD account.

Opening the account previously took 14 days and involved laborious manual trading.

Under the new digital system, investors seeking to invest in Treasury bills and bonds will no longer have to visit CBK physically.

CBK will no longer accept cash or cheque deposits for payments of Treasury bills and bonds- all payments will be done via a commercial bank.

The existing investors are set to be transferred to the new platform.

The platform has been implementes through the support of World Bank.