Kenya Revenue Authority punishes non compliant taxpayers

Press Release.

1.7 million Kenyans met the deadline for filing their returns by yesterday midnight (June 30, Thursday, 2016).

Kenya Revenue Authority commends taxpayers for turning up in large numbers to meet their tax obligation.

This is a true show of patriotism that should be embraced more in the new financial year.

The Authority would like to reiterate that the deadline for filing returns has not been extended and will not be extended.

Consequently,Kenya Revenue Authority informs taxpayers that according to the Tax Procedure Act 2015, Section 83, late filing of returns attract penalties as follows;

• For employment returns, the higher of 25% of tax due or KSh  10, 000.

• For Turnover Tax return – KSh 5, 000.

• In any other case, 25% of the tax payable under the return or Ksh 25, 000 whichever is higher.

• For failure to submit a document other than a tax return, Ksh 1, 000 for each day or part day of default but the total shall not exceed KSh 50, 000.

Taxpayers should seek to know the specific penalty that applies to them.

iTAX Support Centers will continue to operate under normal working hours to assist those filing their returns late.

iTax was introduced by the taxman as a means of getting a 360 degrees view of thee taxpayer in an effort to enhance tax compliance.

Safaricom brings in new top boss from Vodacom Tanzania

Press Release

John, joined Safaricom from Vodafone Tanzania, where he held the roles of Acting Chief Executive Officer and Chief Financial Officer.  He is an original member of the Qatar start-up team which was founded in 2008 and has built a population market share of 48% within 2 years. 

John first joined Vodafone in New Zealand in 2003, and has since held senior financial roles in both mobile and fixed telecommunications operations.  He is a Board member of Vodafone Qatar, and was previously a Board member of Vodafone Fiji. 

Prior to joining Vodafone, John was a management consultant with clients across a variety of industries.

John is a 49 year old New Zealander and has a Bachelor of Management Studies, with majors in marketing and accounting.

Safaricom has today announced the appointment of Sateesh Kamath as it’s Chief Financial Officer (CFO) and Executive Board Member of Safaricom Ltd., effective August, 2016.

Kamath joins Safaricom from Vodacom Tanzania Ltd, where he was the Chief Financial Officer and Executive Director on the board of Vodacom Tanzania.
With over 19 years’ experience in both mature and emerging markets across Asia, Europe and Africa, Kamath has a strong background in strategic performance management and building robust operations across the telecoms, FMCG and manufacturing sectors.

Prior to his former position at Vodacom, Kamath has held senior roles for the last 12 years at both a global and local level for Vodafone operations in London, Australia, New Zealand, Turkey and Fiji.

He is also non-executive Director in other group companies and investments.
Kamath succeeds current CFO and Executive Director John Tombleson, who took up the position in 2011.

As Tombleson comes to the end of his five year term, he will be returning home to Vodafone New Zealand to take up a new opportunity as the Integration Director of the recently announced merger between Vodafone New Zealand and Sky New Zealand.

A senior Vodafone resource,  Tombleson joined Safaricom from Vodafone Qatar, where he held the position of Ag Chief Executive Officer and Chief Financial Officer.

Tombleson first joined Vodafone in his home country of New Zealand in 2003, and has since held progressively senior financial roles in both mobile and fixed telecommunications operations.

“Kamath will join the company to steer its next phase of development as we work towards becoming ensuring our business continues its sustainable growth,

“As Tombleson’s tenure comes to its close, we are pleased that he will leave the company to return to his home town leaving behind a strengthened investor relations portfolio and strong relationships with our shareholders,

“As a seasoned financial executive,  Tombleson leaves the company having steered the company through its most robust and fruitful years. He has been an invaluable resource to the executive team,” said ,” said Bob Collymore, Safaricom CEO.

Thousands in last minute rush to beat tax returns deadline

Thousands of taxpayers thronged KRA offices on Thursday to file their tax returns in a last minute rush to beat the June 30 deadline.

A spot check at Times Tower, the GPO and City Square Huduma Centres revealed long queues of people who were waiting to file their returns amid claims that services on the online portal were down.

"If you are here for services to do with KRA, we cannot help you because our systems are down," a female attendant at the City Square Huduma Centre told a group of taxpayers who had turned up for the filing.

"If you need help on KRA, go to railways centre or Times Tower, huko system zao zinafanya (systems there are working)," the lady said.

An almost similar response met tax payers who had sought to file their returns in cyber cafes.

"Tuko na net but site ya KRA haifanyi. (We have network but the KRA portal is unresponsive)," an attendant at a cyber café on Tom Mboya Street told a customer who had sought to know if he could file his returns.

The tax agency on Tuesday said that at least 1.2 million taxpayers had filed their returns through the online platform.

Kenyans have been filing their returns in 37 Huduma centres situated across the country.

Failure to file returns on or before the due date attracts a default penalty of Sh10,000 up from the previous penalty of Sh1,000.

2 million file returns on iTax as KRA extends deadline to Sunday

Models at a mock queue along Mombasa road during the launch of a countrywide campaign by KRA to sensitise all tax payers to adopt the online platform ‘iTax to file returns.

A record two million users filed their tax returns on the Kenya Revenue Authority's (KRA) iTax platform as the taxman said the deadline to file returns had been extended to Sunday.

KRA says the record number was reached as at June 30, 2015, adding that the system has heralded a new dawn in the use of information technology to collect tax.

This number, however, is expected to go higher as the deadline for filing income tax returns has been extended another four days to close at midnight on Sunday July 5, 2015. During this period, KRA says that taxpayers who are yet to file their returns will enjoy a penalty-free reprieve.

"By law, taxpayers who fail to submit their returns by this Sunday, face the risk of being surcharged a Sh1,000 and Sh10,000 minimum penalty for individuals and companies respectively or 5 per cent of the net tax due," a statement from the taxman says.

"At KRA, we are encouraged by the iTax uptake which is one of our key transformation platforms as we strive to simplify and raise efficiency in tax administration,” the body's commissioner-general John Njiraini said.

SOURCE>BUSINESS DAILY

Safaricom to refund customers for dropped calls

Bob Collymore, chief executive of telecommunications giant Safaricom, responds to questions during the launch of the 'Safaricom Guarantee', My Data Manager' and 'My Subscriptions' services, June 29, 2016.

Safaricom has launched services that will see customers refunded for calls disrupted as a result of network issues and allow its subscribers have more control over their use of data bundles.

Chief executive Bob Collymore said the 'Safaricom Guarantee', 'My Data Manager' and 'My Subscriptions' services will keep customers from incurring losses.

Collymore added in a statement to newsrooms on Wednesday that the three will give subscribers control of the telecommunication giant's services.
Customers will receive refunds through the Safaricom Guarantee service.
Safaricom said they will get back up to a minute of talk time if their calls to other subscribers are disconnected.

"Safaricom Guarantee will leverage the extensive investments Safaricom has made in building the most advanced network in the country," said Collymore.
He noted that Safaricom has invested an average of Sh30 billion a year in building the best network but that there is opportunity to do more.
My Data Manager will give customers power to control data bundle usage, allowing them to restrict browsing on out-of-bundle rates.

This will resolve cases where customers are switched to the pricier airtime option when they run out of data bundles.

My Subscriptions also hands customers power to view active subscriptions (Data, SMS, Skiza and Premium Rate Services) and either maintain, add or unsubscribe.

The company becomes the first operator in Africa to announce such initiatives, and is the first in the world to offer real-time refunds for network related call disconnections.

Collymore said: "The collection of products we are launching today aims to provide our customers with increased control over the services they use on our network."

“We are firmly focused on enhancing the experience of our customers and believe these initiatives demonstrate our solid commitment to our customers' needs."

Information cabinet Secretary Joe Mucheru commended Safaricom for innovations that improve customer experiences.

Noting the sector is evolving, Mucheru said service providers should turn their focus to quality.

Campus Students file tax returns online ahead of Thursday deadline

Kenya Revenue Authority commissioner general John Njiraini demonstrates use of the iTax system to taxpayer Frida Sigilai in a file

The taxman has reported that 1.2 million Kenyans have filed their annual returns through the iTax system.

The Kenya Revenue Authority has a database of 8.1 million taxpayers but only 1.6 million filed returns in 2015.

In a statement on Tuesday, acting domestic taxes commissioner Benson Korongo said they have been receiving approximately 70,000 returns daily.

"The system gives taxpayers the luxury of filing returns from the comfort of their homes or offices at any hour of day or night," he noted.

Korongo said the number is expected to rise as taxpayers make efforts to meet the Thursday deadline.

He said the Kenya Revenue Authority has set up 21 iTax support centres and has presence in 37 Huduma Centres.

"Three more centres are set to be opened up this week in Central," he said.
The commissioner added that the authority has trained more than 40,000 Kenyans on how to file their tax returns online.

He urged taxpayers to seek assistance at the support centres across the country.
Korongo said more centres countrywide will be opened for longer hours ahead of the deadline.

Rwathia boys built business empire worth billions

Gerald Gikonyo with his wife. The companies he co-founded with friends and relatives mainly from his Rwathia village in Murang’a County started with his first salary of Sh4. His current abode is in one of his hotels in the city centre from where he keeps the wheels of his companies humming along.

A senior lecture in one of the leading universities wrote in his article that a particular village in Kenya controls a good percentage of Kenya’s wealth.
Dr  Bitange  Ndemo,  a  senior  lecturer  at  the University of Nairobi’s Business School, pointed out that the  most  successful  business  people  in  Kenya  or  East  Africa  come  from  Rwathia village.
Rwathia Village is in Kangema, Muranga County.


The  new  generation  of  Rwathia  boys  include  Equity  Bank  Chairman  Peter  Munga, Equity Bank CEO    James Mwangi, billionaire investment banker Jimnah Mbaru and insurance magnate Benson Wairegi.
Ndemo in a  2014 article title The Mystery of Success, he expains that Rwathie controls almost 20 per cent of GDP and nearly half of stock market in the country.

“This village arguably controls almost 20 per cent of Kenya’s Gross Domestic Product (GDP)  and  almost  40  per  cent  of  the  stock market  in  Kenya,”

“Their  forebearers like Gerishon Kirima and Gerald Gikonyo, one of the co-founders of Rwathia Distributors, were successful in spite of the fact that they had limited education. Rwathia’s third generation is succeeding, not just here in Kenya, but in far-flung areas like the United States, ” Ndemo adds.

Ndemo goes further to say that Wings to Fly, an initiative by Equity bank led by Mwangi is enoufh evidence that their wealth is in big numbers.

“Equity’s  Corporate  Social  Responsibility  in  Wings  to  Fly,  which  is sponsoring students to attend some of the best  universities  in  the  world,  is  enough  to  shower blessings on its founders. So whichever  way  you  look  at  this,  Dr  Mwangi  and  his  teams  have  left  an  indelible mark  that  will  never  be  matched  by  any  organisation  in the foreseeable future,” he adds.

The school is an A.C. K. sponsored school situated at Kihoya village, Rwathia location, Kangema district. It is in Kanyenyaini educational zone.

It all started with Gerald Gikonyo who quit his job with Kenya Planters’ Co-operative Union with a salary of Sh20 per month.

Dyer & Blair Investment Bank chairman and acting CEO Jimnah Mbaru.

In 1931, he left employment for full-time business. He partnered with his village mate Solomon Karanja to secure a hawking licence.

CEO and Managing Director of Equity Bank, Mwangi made $2 million dollars when he sold off some of his shares in the company in November last year.

The same year, he put up a shop back home at Githioro in Rwathia, in partnership with his step-brother Gikonyo Muthuri.

In time, they diversified into many ventures until they built some of the prime buldings in the Capital City.

As they were progressing, they mentored other new generation of Rwathie boys, who are now controlling a good percentage of Kenya’s wealth.

Rwathia’s third generation is succeeding not just here in Kenya but in far-flung areas like the US.

However,  no  scientific  research  being conducted towards to justify Ndemo’s article.

KCB now takes over Chase Bank set t re-open on April 27, 2016

The Central Bank of Kenya (CBK)  has announced that all branches of Chase Bank will be reopened on April 27, 2016.

In a press conference on Wednesday April 20, CBK governor Patrick Njoroge said that customers will have immediate access of up to KSh 1 million.
At least 167,290 accounts, equivalent to 97% of accounts, will have their funds available in full.

The online and mobile banking services will also become available. However, branches may initially offer limited banking services, Njoroge has announced.
Kenya Commercial Bank (KCB) has been announced as the institution that will take over majority of the stake in the re-opened Chase Bank and will provide adequate liquidity for the operations.

“We expect the strong management of KCB in Chase Bank to strengthen confidence in market,” Njoroge said.

All employees of Chase Bank have been asked to report back to their stations of duty immediately, and await announcement of new structures within the institution.
While KCB will be the managers of the bank, the independent Kenya Deposit Insurance Corporation will still be in charge in line with the law.
Chase Banks has 180,000 customers at the moment including institutions and non-governmental organisations.

On Thursday April 7, 2016, CBK placed Chase Bank under receivership following a loss of KSh 724 million leading to panic withdrawals from the customers of up to KSh 1 billion within a single day.
This is what brought down the bank.

But CBK unearthed unethical coduct among directors of the bank after it was revealed that one had accessed an unsecured loan of KSh 8 billion.
Chase Bank staff were reported to have borrowed KSh 13.6 billion, an amount that surpassed the lender’s shareholding funds which stood at KSh 11.19 billion.

“As has also been indicated, firm action will be taken against those who have abused their fiduciary duties of managing our financial institutions,” Njoroge added.

Its auditors, Deloitte and Touche, gave a qualified opinion of the bank’s financial records in which non-performing loans increased from KSh 3 billion in 2014 to KSh 11 billion in 2015.
In banking terms, a qualified opinion is a situation in which the auditors receive limited information on the company’s financial performance in a situation where the company does not meet the requisite accounting method standards.
They also found that the numbers did not add up to qualify such results as not much information was given to explain how the figures were arrived at.