Thursday, October 29, 2020 – The Kenya Revenue Authority has been granted access to secret investments held by wealthy Kenyans.
According to new regulations that have been enforced in October 2020, Kenyan firms will have to submit information about individual investors who own more than 10% shares in Kenya’s biggest companies.
KRA, security agencies, and the Financial Reporting Centre (FRC) will have access to KRA PINs, national ID or passport copies, postal addresses, residential addresses, occupations, telephone numbers, and the date when the investors became beneficial owners of the said companies.
This will reveal secret wealth held by Kenyans at the Nairobi Securities Exchange through nominees or proxies.
According to data from NSE, 77 percent of investors’ wealth at the stock exchange is held by undisclosed shareholders.
New businesses seeking registration will be required to provide the said information while existing companies will be given a deadline to make full disclosures.
Firms that fail to adhere to the new regulations risk a Ksh 500,000 fine and Ksh 50,000 penalty for every day they fail to comply with the new framework.
Through the new laws, the Government hopes to unearth ill-gotten wealth and curb insider trading which is a serious financial crime in Kenya, attracting fines up to Ksh 500 million.
The Kenyan DAILY POST