CARMEL RICKARD: Hands off banks — for now
A Kenyan court sides with the banking sector after government introduces vague legislation about a ‘Robin Hood’ tax on bank transfers
Kenya’s high court has put on hold a controversial new government tax on money transferred by banks in that country. The new tax was announced in June by Kenya’s cabinet secretary for national treasury, Henry Rotich. But when members of the Kenya Bankers Association could not get clarity from the government on the meaning of crucial phrases in the proposed law, they went to court. Sitting in the constitutional & human rights division of the high court in Nairobi, Wilfrida Okwany has now agreed to a temporary order, suspending the new tax from coming into effect pending a full hearing in September. The judge heard that when the new "Robin Hood" measures were announced by Rotich, bankers realised they would have to change the software operating their banking systems. Previously the government had levied a duty on the fee charged by the bank providing money transfer services. The new tax, however, imposes duty on the amount of money transferred and major changes have to be made to soft...
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