Tax Reserve Certificates, Cap.

418

(Repealed by Act 6 of 2001)

CHAPTER 418

TAX RESERVE CERTIFICATES ACT

Commencement Date: 20th June, 1955

An Act of Parliament to provide for the issue of tax reserve certificates; for
the acceptance for certain purposes of tax reserve certificates; and for
matters incidental thereto and connected therewith

Short title.
1. This Act may be cited as the Tax Reserve Certificates Act.

Issue of tax reserve certificates and interest thereon.

2. (1) The Minister may issue certificates, to be called tax reserve certificates,
of such denominations and subject to such conditions as he may prescribe.

(2) Any interest due shall be paid on every tax reserve certificate at such rate per
annum on the face value thereof as the Minister may prescribe.

Validity of tax reserve certificates.

3. Any tax reserve certificate shall be accepted at its face value in payment of
any amount due or payable to the Government in respect of any tax prescribed by
the Minister.

Payment of interest.
4. Any interest due on any tax reserve certificate which is accepted in
payment of any tax shall be paid to the holder thereof in such manner as shall be
prescribed by the Minister.

Moneys received for tax reserve certificates to be paid to the Consolidated

Fund.
34 of 1960, s.6,
21 of 1961, Sch.
5. All moneys received for the purchase of any tax reserve certificate issued
under this Act shall be paid to the credit of the Consolidated Fund, and any amounts
required for the redemption of any tax reserve certificate and for the payment of any
interest thereon shall be charged upon and paid out for the Consolidated Fund.
Moneys received for tax reserve certificates not to be regarded as borrowings. Cap.
419. Cap. 420.

Moneys received for tax reserve certificates not to be regarded as

borrowings.
Cap 420.
6. The provisions of the General Loan and Stock Act and of the Internal Loans
Act shall not apply to moneys received for the purchase of any tax reserve certificate
issued under this Act.

Regulations.
7. The Minister may make regulations for the proper carrying out of the intent
and provisions of this Act.

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 Tax Reserve Certificates, Cap. 418

SUBSIDIARY LEGISLATION

G.N.944/1955,
L.N.488/1956,
L.N.188/1957,
L.N.557/1957,
L.N.166/1960,
L.N.492/1961,
L.N.567/1962,
L.N.121/1971,
L.N.181/1971.
L.N.111/1975,
L.N.32/1983.

Regulations under section 7

THE TAX RESERVE CERTIFICATES REGULATIONS

1. These Regulations may be cited as the Tax Reserve Certificates Regulations.

2. In these Regulations

"certificate" means a tax reserve certificate issued under the Act.

3. A certificate shall be accepted at its face value in payment of any amount due or payable to
the Government in respect of any tax specified in the First Schedule.

4. Certificates shall be obtainable from the Permanent Secretary to the Treasury, Nairobi, and
shall be issued, in the form set out in the Second Schedule, only in fixed multiples of 5.

5. No person may hold at any one time certificates to a value exceeding 100,000 except with
the prior approval in writing of the Permanent Secretary to the Treasury.

6. Application for a certificate shall be made in the form set out in the Second Schedule, and
copies thereof may be obtained from the Permanent Secretary to the Treasury.

7. A certificate shall be accepted by any person authorized or required to assess or collect any
prescribed tax not earlier than three months from the date of issue of the certificate, at its
face value, for the payment of that tax, and shall be tendered for acceptance accompanied by
an application for surrender in the form set out in the Second Schedule.

8. (1) Interest at the rate of 3 per centum per annum for every completed month,
commencing on the first day of the month next following the date of issue and ending on the
last day of the month immediately preceding that in which a certificate is accepted for
payment of tax, shall be paid on the face value of any certificate so accepted to the extent of
such acceptance:

Provided that -

(i) where a certificate is accepted on the last day of any month, interest shall be payable for
that month;

(ii) in the case of a certificate issued after the 16th May, 1961, the rate of interest on the face
value thereof shall be 4 per centum per annum;

(iii) in the case of a certificate issued after the 17th June, 1971,the rate of interest on me
value thereof shall be 2 per centum per annum;

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 Tax Reserve Certificates, Cap. 418

(iv) in the case of a certificate issued after the 1st July, 1975,the rate of interest on the face
value thereof shall be 4 per centum per annum.

(v) in the case of a certificate issued after the 17th June, 1982, the rate of interest on the face
value thereof shall be 8 per centum per annum.

(2) Interest will be paid by the Permanent Secretary to the Treasury to the registered holder
of the certificate.

9. Where the face value of any certificate tendered in payment of any prescribed tax exceeds
the amount of that tax, the balance remaining after payment of that tax shall be endorsed on
that certificate in multiples of 5 and any amount of less than 5 shall be paid to the
registered holder of that certificate by the Permanent Secretary to the Treasury; and the face
value of a certificate so endorsed shall be the amount so endorsed.

10. No interest shall be payable on any certificate after the expiration of three years from the
first day of the month next following the date of issue; and at any time after the expiration of
that period, the registered holder may apply to the Permanent Secretary to the Treasury for
the repayment of the face value of the certificate.

11. In the event of the death of the registered holder of a certificate, or in any other special
circumstances, application may be made to the Permanent Secretary to the Treasury for the
repayment of any certificate; and repayment shall be made only on the written authority of
the Permanent Secretary to the Treasury, who may also authorize in writing the payment of
interest at the rate of 3 per centum per annum or, in respect of any certificate issued after the
16th May, 1961, 4 per centum per annum or, in respect of any certificate issued after the 17th
June, 1971, 2 per centum per annum or, in respect of any certificate issued after the 1st
July, 1975, 4 per centum per annum for every completed month, commencing from the first
day of the month next following the date of issue and ending on the last day of the month
immediately preceding that in which the certificate is surrendered, if he considers the
circumstances justify the repayment or payment.

12. A certificate shall not be transferred to any other person without the prior consent in
writing of the Permanent Secretary to the Treasury.

13. A duplicate of any certificate lost, destroyed or mutilated may be obtained on application
to the Permanent Secretary to the Treasury on payment of a fee in respect of each certificate,
the amount of the fee being the cost of advertising the loss of the certificate in the Gazette,

FIRST SCHEDULE
(r. 3)
Cap. 470.

Income tax, surtax and corporation tax imposed by the Income Tax Act.

SECOND SCHEDULE
(rr. 4, 6 and 7)
APPLICATION FORM

THE PERMANENT SECRETARY TO THE TREASURY,

P.O. Box 30007,
NAIROBI.

I/We hereby apply for ................. (say, .......... pounds) of the above-mentioned
certificates issued in terms of the Tax Reserve Certificates Regulations. A cheque for this
amount is attached.

The certificate(s) is/are to be registered in the name(s) of: -

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 Tax Reserve Certificates, Cap. 418

Full name (use BLOCK LETTERS) *................................................

Permanent address ............................................................................

Signature of Applicant .......................................................................

Date ......................... 19....

*Title, if any, should be stated, and females should add "spinster", "married woman" or "widow".

For Official Use Only

Number Denomination

For the issue of Tax .............. ......................

Reserve Certificates: .............. ......................

Stamp of
Issuing Office:
_________________________________________________________________

FORM OF SURRENDER
Date ......................... 19....
The Regional Commissioner of Income Tax.

Dear Sir,

I/We .............................................of .................................... being the Registered

Holder(s) of the following Kenya Tax Reserve Certificate(s) -
..................................................................................................................... as
attached, hereby tender this/these certificate(s) for acceptance in or towards payment of the
tax noted on the attached remittance slip.

*The sum of Sh. ........................... being the excess of the assessment over the face value
of the Tax Reserve Certificate(s) now surrendered is also attached in the form of
cheque/postal order/ money order/cash.

*The Balance Certificate.

The interest due on the surrendered Certificate(s) or portion thereof) should be sent to the
above address,

or to
............................................................................................................
...................................................................................................................
Yours faithfully,
...............................................................
* Delete as necessary.
FORM OF CERTIFICATE
No. ............

This is to certify that ................................. of ........................................ is/are the

Registered Holder(s) of .............. per centum Kenya Tax Reserve Certificates to the value of
...............................................say, Pounds ...................................

Interest on the above holding will commence to run from 1st ................ 19...., but will only
be paid on the amount of the above holding from time to time surrendered for payment of a
prescribed tax.

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 Tax Reserve Certificates, Cap. 418

Nairobi,

..................... 19 .........

...................................................
Permanent Secretary to the Treasury

THIS CERTIFICATE is NOT TRANSFERABLE

For Official Use Only

APPL. NO. REG/FO SUR
DATE INT/PD
SUR
INT/PD

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