Okiya Omtatah challenges new taxes on money transfer

Human Rights activist Okiya Omutatah during a past court proceeding in June 2018. [File, Standard]

An activist has moved to court to block new taxes proposed by the government.

Activist Okiya Omtatah filed the urgent suit seeking orders to suspend the presumptive tax targeting the informal sector, mobile money transfers and banks.

Mr Omtatah argued that Treasury CS Henry Rotich illegally introduced the new levies without involving the relevant authorities.

According to the activist, Treasury has purported to enforce the Finance Bill 2018 which introduced the new taxes without subjecting it to public participation and parliamentary approval.

He submitted that Kenyan taxpayers must be shielded from exposure to taxes which have not been approved by Parliament.

"Purporting to give the CS powers to temporarily amend the national tax revenue statutes through a finance bill without having it first go through the legislative process to become law as explained is unconstitutional, and therefore invalid, null and void," said Omtatah.

He wants the court to suspend the imposition of any tax proposed in the bill until the suit is heard and determined.

The activist joins the Kenya Bankers Association (KBA) which has also filed a suit challenging the new tax on bank transactions involving money transfers of Sh500,000 and above. The bankers say the new tax will disrupt business.