Kenyan Constitution, Chapter Twelve, Part 3, Article 209 to 214

By Juma / Published November 25, 2016 | 9:02 am

Part 3: Revenue-raising powers and the public debt

Article 209: Power to impose taxes and charges

(1) Only the national government may impose —

(a) income tax;
(b) value-added tax;
(c) customs duties and other duties on import and export goods; and
(d) excise tax.

2) An Act of Parliament may authorise the national government to impose any other tax or duty, except a tax specified in clause (3) (a) or (b).
(3) A county may impose–

(a) property rates;
(b) entertainment taxes; and
(c) any other tax that it is authorised to impose by an Act of Parliament.

(4) The national and county governments may impose charges for services.
(5) The taxation and other revenue-raising powers of a county shall not be exercised in a way that prejudices national economic policies, economic activities across county boundaries or the national mobility of goods, services, capital or labour.

Article 210: Imposition of tax

(1) No tax or licensing fee may be imposed, waived or varied except as provided by legislation.
(2) If legislation permits the waiver of any tax or licensing fee–

(a) a public record of each waiver shall be maintained together with the reason for the waiver; and
(b) each waiver, and the reason for it, shall be reported to the Auditor-General.

(3) No law may exclude or authorise the exclusion of a State officer from payment of tax by reason of–

(a) the office held by that State officer; or
(b) the nature of the work of the State officer.

Article 211: Borrowing by national government

(1) Parliament may, by legislation –

(a) prescribe the terms on which the national government may borrow; and
(b) impose reporting requirements.

(2) Within seven days after either House of Parliament so requests by resolution, the Cabinet Secretary responsible for finance shall present to the relevant committee, information concerning any particular loan or guarantee, including all information necessary to show–

(a) the extent of the total indebtedness by way of principal and accumulated interest;
(b) the use made or to be made of the proceeds of the loan;
(c) the provision made for servicing or repayment of the loan; and
(d) the progress made in the repayment of the loan.

Article 212: Borrowing by counties

A county government may borrow only-

(a) if the national government guarantees the loan; and
(b) with the approval of the county government’s assembly.

Article 213: Loan guarantees by national government

(1) An Act of Parliament shall prescribe terms and conditions under which the national government may guarantee loans.

(2) Within two months after the end of each financial year, the national government shall publish a report on the guarantees that it gave during that year.

Article 214: Public debt

(1) The public debt is a charge on the Consolidated Fund, but an Act of Parliament may provide for charging all or part of the public debt to other public funds.

(2) For the purposes of this Article, “the public debt” means all financial obligations attendant to loans raised or guaranteed and securities issued or guaranteed by the national government.

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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