Hefty Penalties and Fines Proposed by Ruto’s Govt After Getting into Power
President Ruto’s government aims to increase the count of enrolled individuals from the existing 2.9 million to more than 18.3 million Kenyan citizens engaged in both formal and informal occupations.
Primarily, the suggested penalties have focused on Ruto’s primary initiatives concerning housing, healthcare, agriculture, and finance.
Certain penalties are presently in effect, while others are yet to undergo public engagement and discussion in Parliament.
Here are ten significant sanctions that Ruto’s administration has suggested starting from September 2022.
Housing Levy
Delayed Remittance
According to the controversial tax, the government plans to impose fines on employers and Kenyan individuals who fail to make their payments on time as required.
As stated in the suggested Affordable Housing Bill, failing to make payments on time will result in a three percent penalty applied to the owed amount.
“Where an amount of the Levy remains unpaid after the date when it becomes due and payable by a person liable to remit the amount, a penalty equal to three percent of the unpaid amount shall be due and payable for each month or part thereof that the amount remains unpaid and shall be summarily recovered as a civil debt from the person liable to remit the amount,” read the bill tabled by National Assembly leader of Majority Kimani Ichung’wah in December 2023.
Social Health Insurance Fund
Over Deduction
Under the regulations outlined in the Social Health Insurance Act No 16 of 2023, it is considered a violation for an employer to take out an amount exceeding 2.75 percent from an individual’s salary or income as deductions.
Employers in this situation could incur a hefty fine of Ksh2 million and a maximum imprisonment of three years.
Falsified Documentation
If someone fabricates paperwork to obtain advantages, they will be guilty of breaking the law as described in the legislation.
“A person who to obtain any benefit for himself or herself or any other person, knowingly makes any false statement or representation, or produces or furnishes, or causes to be produced or furnished, any document or information which he or she knows to be false in any material particular, commits an offense and shall be liable on conviction to a fine not exceeding two million shillings or to imprisonment for a term not exceeding three years, or to both,” reads the Act in part.
Access to Government Services
According to the regulations put forward by Health Cabinet Secretary Susan Nakhumicha, Kenyans who do not register for compulsory Social Health Insurance will face the refusal of government services at both national and county government levels.
Some of the highlighted services encompass marriage registration, property transfer, and the availability of student loans, among other offerings.
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“A public officer or public entity shall undertake such compliance checks as may be necessary including requesting a person seeking a government service in the public entity to provide their social health insurance number,” read the regulations in part.
Sharing of Data
According to the Digital Health Bill, it is considered a criminal offense for any individual in Kenya to disclose or distribute important health details about someone to an unauthorized party without their consent.
Such a person faces a fine of Ksh1 million shillings and an option of a 15-year jail term.
Hustler Fund
Defaults
Under the initiative led by Ruto, several consequences were implemented for failing to repay loans.
“15 days after the date of default the interest rate will be adjusted to 9.5 per cent per annum. Thereafter, persistent default spanning 30 days and over will see you lose your existing credit score and your account frozen.
“Interest continues to accrue pegged on the in-duplum rule and recovery methods will be initiated,” the Hustler Fund operation module read in part.
Agriculture
Licensing
According to the Animal Production Professionals and Technicians Bill 2023 introduced by Agriculture Cabinet Secretary Mithika Linturi, Kenyans providing animal production services, including activities like animal feeding and nutrition, could be subjected to a penalty of Ksh500,000.
“Unlicensed persons are prohibited from charging fees for animal production services and it is an offense to do so punishable by imposition of a fine not exceeding Ksh500,000 or imprisonment for a term not exceeding 6 months or to both such fine and imprisonment,” reads the proposed bill in part.
Poultry Farming
Similarly, according to the Livestock (Poultry Industry) Regulations 2023, it is required for poultry breeders to officially register their livestock with the governmental authorities.
The legislation also suggested that the sale of poultry and its derivatives would be limited to specific locations authorized by the government of the country.
“A person who contravenes the provisions of this regulation commits an offense and shall be liable on conviction to a fine not exceeding Ksh50,000 or imprisonment for a period not less than 6 months or both.
Unlicensed Inspectors
“A person who carries out the functions of a poultry inspector without having been duly appointed by the Authority commits an offense and shall be liable, on conviction, to a fine of Ksh500,000 or imprisonment for one year, or both,” read the proposed regulations.
Disaster Relief
Falsified Reliefs
According to the 2023 National Disaster Risk Management Bill introduced by Ichung’wah, individuals in Kenya who provide false information to claim aid for calamity-related losses could face hefty fines amounting to millions of currency units.
The legislation seeks to assist the government in efficiently addressing disasters like floods, which periodically cause damage to the possessions of Kenyan citizens.
“A person who knowingly makes a claim which the person knows or has reason to believe to be false, to obtain any relief, assistance, repair, reconstruction or other benefits from the Authority, commits an offense and is liable on conviction to a fine not exceeding one million shillings or to imprisonment for a term not exceeding one year, or to both,” the bill proposed.
Hefty Penalties and Fines Proposed by Ruto’s Govt After Getting into Power