Earlier this month, the Kenya Revenue Authority was gazetted to take over the collection of revenue in Nairobi County. The Gazette notice of February 25, 2020 appointed KRA as the principal revenue collector for the Nairobi City County.
According to the gazette notice, KRA will manage collection of revenue for the next two years. Additionally, KRA will have access to the city revenue processes, information, data and systems. They will also be able to access the county’s records.
“Kenya Revenue Authority has today commenced revenue collection for Nairobi City County government,” a statement from the taxman stated.
On Friday, all City Hall staff that are involved with collection of revenue are expected to report to Times Tower for redeployment as KRA takes over formally. Additionally, they were asked to stop collecting revenue.
New Bank Accounts
KRA has introduced new bank accounts. The bank accounts will be used for revenue collection in the county.
This move will revert payment for services at City Hall to the manual system. KRA clearly stated that residents, business owners and motorists will have to pay county revenue through the banks.
Currently, the county revenue will be paid through two banks. These are Cooperative Bank Account number 01141709410000 (City Hall) and National Bank Account number 01071225251100 (Times Tower). The accounts are under the name Nairobi County Revenue Collection.
Following the signing of a deed of transfer agreement between the county government of Nairobi and the national government, KRA took over from 16th March.
Consequently, KRA will oversee all revenue and administer taxes. They will accomplish this through the normal process of assessment, payment, accounting and remission. Additionally, they will enforce by compliance and debt recovery.
National Bank has been collecting parking revenue on behalf of City Hall. This is after City Hall’s contract with Jambopay ended in June 2019.
Warning to City Hall Staff
This Tuesday, KRA warned City Hall staff from collecting revenue on behalf of the county. Anyone who collects such revenue from Monday next week will be prosecuted.
KRA said that from now henceforth it will be the one in charge of revenue collection. Additionally, it will redeploy staff who are currently collecting revenue.
“Any other person purporting to collect revenue on behalf of Nairobi County government with effect from Monday, March 23, 2020 shall be impersonating a public officer and shall be liable for prosecution in accordance with the law,” a notice by KRA Commissioner-General James Mburu and Devolution Principal Secretary Charles Sunkuli stated.