Cabinet Brief

Under the chairmanship of President Uhuru Kenyatta, the Cabinet today met at State House Nairobi and approved a number of bills and legal notices. The Cabinet approved the Finance Bill 2013 under which 8 Bills namely VAT Act Repeal Bill, the CMA (Amendment) Bill, the Insurance (Amendment) Bill 2013, the Microfinance (Amendment Bill) 2013, the Tax Appeals Tribunal Bill 2013, the Kenya Deposit Insurance Act (Amendment) Bill, 2013 and the Insurance (Motor Vehicle Third Party) Amendment Bill 2013, were approved. The Insurance (Amendment) Bill 2013 seeks to deepen the penetration of insurance, where banks will be allowed to operate as insurance agents. The Bill will also ensure implementation of the requirements of the East African Community Common market Protocol in order to open up business opportunities to East Africans. The Microfinance (Amendment Bill) 2013 will give powers to the Central Bank to promptly move into a troubled microfinance institution to forestall the deepening of a financial crisis. The Tax Appeals Tribunal Bill 2013 seeks to streamline the tax dispute resolution framework by simplifying the process. An appeals tribunal will be created to replace the quasi-judicial dispute resolution bodies. The Kenya Deposit Insurance Act (Amendment) Bill targets to strengthen the regulatory framework of the Kenya Deposit Insurance Corporation. Once enacted, the law will enhance protection of deposits and savings through a strong mandate and corporate governance. The Insurance (Motor Vehicle Third Party Risks) Amendment Bill 2013 seeks to amend the insurance (Motor Vehicle Third Party Risks) Act.

The law will provide for a structured Compensation Liability Schedule. This will enable compensation of people in the event of death or injuries. The Cabinet also approved a number of Legal Notices aimed at operationalizing futures, derivatives and asset backed securities markets. The Legal Notices also aim at introducing new investment vehicles and products such as real estate investment trusts as well as the prosecution of market manipulation offenders. Also approved were the proposed amendments to the Procurement Regulations to shorten the period for procurement of goods and services to a maximum of 30 days from the date of the expression of interest to the delivery of goods. The amendments also shortened the appeals window for complaints regarding procurement. The Cabinet also ordered the immediate implementation of a number of measures that they approved last week to protect the countrys wildlife. The measures to be implemented are:1.

Establishment of an inter-agency security team composed of personnel from KWS and the Police Service to continuously track down and apprehend bandits in the wildlife sanctuaries including private conservancy areas. The team will also intensify surveillance in wildlife zones. A crash-programme to increase KWS rangers by 1,000. Those behind the poaching business should be marked, named and arrested. The sacking of any KWS official who has been conniving with the poachers.

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Increased fines of up to one million shillings for those found to be engaged in poaching.

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Confiscate property that has been acquired through proceeds of poaching.

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Search any vehicle or vessel and seize and detain any wildlife specimens in respect of which there is reason to believe that an offence has been committed, together with any tools, equipment, vessels or vehicles used in the commission of the offence.

PPS June 13, 2013