Insight type: Legal Alert

In May 2023, we released a legal alert analysing the Finance Bill, 2023 and its proposed implications. The Bill underwent significant public participation and a contentious Parliamentary debate.

In the recent past, Tanzania has experienced an increase in foreign investment which has subsequently resulted in an increase in cross-border transactions relating to assets in Tanzania, for example, the sale of shares and other investment assets.

On Tuesday, 12 June 2023, President Bola Ahmed Tinubu assented to the passage of the Nigeria Data Protection Bill into law. The draft Data Protection Bill was introduced by the National Data Protection Bureau (NDPB) on the 4th of October 2022 and was approved by the Federal Executive Council in February 2023. The Nigeria Data Protection Act 2023 (NDPA) is the first major federal legislative instrument for the processing and protection of personal data in Nigeria.

In a recently published Public Notice (the Notice), the Kenya Revenue Authority (KRA) has enhanced the Income Tax Company Return (the Return) on the iTax platform to provide for the declaration of related party transactions by persons with related parties and whose ascertainment of gains or profits from a business is subject to the provisions of Section 18 or Section 18A of the Income Tax Act Cap 470 Laws of Kenya (the ITA).

The Supreme Court of Kenya recently delivered a landmark judgment in Dina Management Limited v County Government of Mombasa & 5 others (Petition No. 8 (E010) of 2021), which has significant implications for property investors and stakeholders in Kenya.

The Minister of Communication and Information Technology recently issued a notice (the Notice) on the commencement of the Personal Data Protection Act of 2022 (the Act). Pursuant to the Notice, the commencement date for the Act is 1 May 2023.

The Finance Bill, 2023 (the Bill) was laid before Parliament on 4 May 2023. The Bill makes the most far-reaching changes that have been witnessed in tax legislation in the recent past. The tax measures introduced are aimed at expanding the taxes collected by the Government of Kenya, against the backdrop of fiscal pressure in the currently prevailing economic circumstances. The Bill proposes to make amendments to a raft of tax-related laws in Kenya, including the Income Tax Act (Chapter 470, Laws of Kenya), the Value Added Tax Act, 2013, the Tax Procedures Act, 2015, the Miscellaneous Fees and Levies Act, 2016 and the Excise Duty Act, 2015 amongst others.

The Office of the Data Protection Commissioner (ODPC) continues to exercise its enforcement mandate by taking action against data handlers in breach of the Data Protection Act, 2019 (DPA). Two companies, Whitepath Limited and Regus Kenya, are the latest entities to be issued with penalty notices on 11 April 2023 for breaching certain provisions of the DPA. The ODPC communicated that it had issued penalty notices imposing fines of KES 5 million (approx. USD 37,053) on each of these companies. This is the highest financial penalty under the DPA.

Private Placement Life Insurance (PPLI) is a life insurance policy which can hold a legal and beneficial interest in a range of assets such as financial assets, operating businesses and digital assets while allowing the policyholder (or its representatives) to retain a certain degree of influence and operational control of the underlying assets.

 

The American Chamber of Commerce Business Summit was held on 29 and 30 March 2023 in Nairobi. The objective of the Business Summit was to provide a strategic platform for strengthening two-way trade and investment between the US and East Africa though unleashing the power of private enterprises in driving long-term economic ties, enhancing trade, and promoting investment.