Notices & Publications

LANDLORD AND TENANT BILL 2021

July 5, 2024

The Landlord and Tenant Bill 2021 (“the Bill”) seeks to consolidate all the laws on residential and commercial tenancies and to ensure regulation of the rental sector in Kenya. It applies to both residential and business premises (with some exceptions) and proposes various provisions including establishment of tribunals, limits on...

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DRAFT NATIONAL INSURANCE POLICY

July 5, 2024

The Draft National Insurance Policy: Possible Review of the Insurance Legal Framework in Kenya - The National Treasury recently published the Draft National Insurance Policy (“Draft Policy”), dated March 2021, following a decline in the performance of the insurance industry in the recent years. The National Treasury notes the high...

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VALIDATION OF NAIROBI BLOCK 110 TITLE DEEDS

July 5, 2024

Validation of Nairobi Block 110 Title Deeds: Final chance for affected plot owners to verify their ownership details - The Ministry of Lands and Physical Planning (the “Ministry”) recently suspended land transactions involving Nairobi Block 110 title deeds following several complaints of fraudulent land transactions. The purpose of this suspension...

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INCREASE OF CAPITAL GAINS TAX (CGT)

May 28, 2023

The Finance Act, 2022 (“the Act”), published on 23rd June, 2022 introduced various changes to several statutes, amongst them, the Income Tax Act, Chapter 470 Laws of Kenya. Section 15 of the Act has amended Section 34(1)(j) of the Income Tax Act by increasing the tax on Capital Gains from...

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DERIVATIVE ACTION BY MINORITY SHAREHOLDERS

April 25, 2023

Derivative Action is a form of protection afforded by the existing legal regime to minority shareholders in a Company. The Companies Act, 2015 allows a member of a company to institute a legal action and/or seek remedy on its behalf. This remedy is available to minority shareholders who desire to...

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REGISTRATION OF DATA CONTROLLERS AND PROCESSORS

June 28, 2022

On 31st March 2022, the Office of the Data Protection Commissioner (ODPC) issued a press notice notifying the public that the Regulations on the Registration of Data Controllers and Processors will come into effect from 14th July 2022. The Regulations inter alia, set out the requirements and procedures for registration...

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PUBLICATION OF THE DRAFT CAPITAL MARKETS (PUBLIC OFFERS & LISTING OF SECURITIES) REGULATIONS, 2022

May 13, 2022

On 4th May 2022, the Capital Markets Authority (“CMA”) published the Draft Capital Markets (Public Offers & Listing of Securities) Regulations, 2022 (“draft Regulations”) inviting the general public and stakeholders for comments pursuant to section 12A (3) of the Capital Markets Act. The draft Regulations seek to repeal the existing...

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THE SECTIONAL PROPERTIES ACT 2020: ITS SALIENT FEATURES AND ITS EFFECT ON LONG-TERM LEASES

March 28, 2022

The Sectional Properties Act 2020 (“the current SPA”) was passed to address the challenges under the former Act and to align the law on sectional properties to the current land laws and the Constitution of Kenya. The salient features of the current SPA include: the requirement that owners of sectional...

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THE CENTRAL BANK OF KENYA (DIGITAL CREDIT PROVIDERS) REGULATIONS 2022

March 21, 2022

On 21st March 2022, Central Bank of Kenya (CBK) issued a press notice notifying the public that the Central Bank of Kenya (Digital Credit Providers) Regulations, 2022 (the Regulations) are now operational. The Regulations were published via Legal Notice Number 46 of March 2022. The Regulations seek to address concerns...

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PREVENTION OF BRIBERY AND CORRUPTION IN PUBLIC AND PRIVATE ENTITIES

November 22, 2021

The office of the Attorney General published Guidelines to assist public and private entities in the Preparation of Procedures for the Prevention of Bribery and Corruption (“the Guidelines”). The Guidelines were published following the enactment of the Bribery Act, 2016 (“the Act”), and should be read together with the Act....

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PROPOSED CHANGES TO THE TAX APPEALS TRIBUNAL ACT, NO. 40 OF 2013

November 21, 2021

The Tax Appeals Tribunal (Amendment) Bill, 2021 (“the Bill”) proposes to make several changes to the Tax Appeals Tribunal Act (“the Act”). First, it introduces a timeline of 7 days from the date the decree or order was made by the Tribunal, within which an appellant can lodge an application...

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WHAT IS THE VOLUNTARY TAX DISCLOSURE PROGRAM?

November 18, 2021

The Voluntary Tax Disclosure Program (VTDP) was introduced by the Finance Act, 2020, as part of the changes made to the Tax Procedures Act (TPA). The VTDP is a program which allows taxpayers to voluntarily disclose any tax liabilities, which were previously undisclosed to the Commissioner of Domestic Taxes, for...

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LOWER ELECTRICITY COSTS: KPLC TO RENEGOTIATE WITH INDEPENDENT POWER PRODUCERS

October 18, 2021

President Kenyatta has directed KPLC to renegotiate existing contracts with Independent Power Producers (IPPs) with a view to lowering the tariffs payable by KPLC to IPPs. This follows a raft of recommendations by a presidential taskforce established in March 2021 to review Power Purchase Agreements (PPAs). The Ministry of Energy...

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CAN AN EMPLOYEE WITHDRAW A RESIGNATION LETTER?

October 12, 2021

As a general rule, an employee does not have the right to unilaterally withdraw his/her resignation. However, there are special circumstances where this rule does not apply. The High Court in Edwin Beiti Kipchumba v National Bank of Kenya Limited [2018] eKLR observed that the existence of special circumstances, such...

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TAXPAYERS TO PREPARE A SEPARATE ACCOUNT FOR DIFFERENT SOURCES OF INCOME

October 9, 2021

Section 15(7) of the Income Tax Act requires that a person who derives income from one or more specified sources submit a separate account and a separate computation in respect of each specified source. The Kenya Revenue Authority (KRA) published a notice on 22nd September, 2021 informing the public of...

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THE HIGH COURT DECLARES MINIMUM TAX UNCONSTITUTIONAL

September 28, 2021

On 20th September 2021, the High Court of Kenya ruled that the amendment to section 12D of the Income Tax Act which introduced minimum tax, is unconstitutional. Minimum tax was introduced under the Finance Act, 2020 to be charged at the rate of one per cent (1%) of the gross...

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CHANGES MADE TO THE INSURANCE ACT BY THE FINANCE ACT, 2021

September 21, 2021

The Finance Act, 2021, which came into force on 29th June, 2021, introduced some amendments to the Insurance Act. The definition of the term “broker “has been redefined in the Insurance Act, Chapter 487 of the Laws of Kenya (“the Act”) to include foreign reinsurance brokers who do not have...

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EMPLOYEES ON PROBATION SUBJECT TO SUBSTANTIVE PROCEDURAL REQUIREMENTS

August 22, 2021

The Employment and Labour Relations Court recently declared that section 42 (1) of the Employment Act, 2007, in so far as it excludes an employee holding a probationary contract from the provisions of Section 41 of the Employment Act, is unconstitutional. The latter provision of the law requires formal notification...

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PARENTAL RESPONSIBILITY OVER CHILDREN TO VEST EQUALLY IN BOTH PARENTS IN PROPOSED CHANGES TO THE LAW

August 18, 2021

Parental Responsibility over children to vest equally in both parents in proposed changes to the law - The Children (Amendment) Bill, 2020 (“Bill”) seeks to amend the Children Act (“Act”) by vesting equal responsibility for parental care and protection of a child in both parents of that child. Further, the...

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CONVERSION OF TITLES: REVOCATION OF THE PREVIOUS GAZETTE NOTICES AND ISSUE OF NEW GAZETTE NOTICE

August 11, 2021

The Ministry of Lands and Physical Planning on 16th July, 2021 issued a new Gazette Notice No. 7146, revoking the previous Gazette Notice Numbers 11348 of 2020, and 520, 1706 and 1707 of 2021. These Notices had previously indicated the properties to be affected by the conversion process. The new...

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