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Huduma Namba to Replace KRA PIN in Proposed Amendment Bill

The Huduma Namba card is set to replace the Kenya Revenue Authority PIN in new changes aimed at nabbing tax cheats. The government is proposing to amend the Tax Procedure Act in the New Huduma Namba Bill,2021 to make the biometric ID the key number for identifying tax payers.

If the bill is adopted, children who have already registered with the Huduma Namba ID will be listed as taxpayers upon hitting 18 years, and will be required to start filing returns irrespective of their income or employment status.

The amendment will also help KRA net in more taxpayers than the current 5.5 million it has managed from annual tax returns. The current system has enabled the taxman to nab a section of nab cheats as it grows its revenue streams in a bid to meet collection targets.

The bill will be introduced in parliament this afternoon.

Read: Gov’t Announces Second Phase Of Huduma Namba Registration In May

“Huduma Namba assigned to an individual under the Huduma Act, 2021 shall serve as PIN for the purpose of tax law,” it says.

Newborns and small children who have been enrolled into the National Integrated Identity Management System (NIIMS) will be issued a certificate of Birth with the Huduma Namba which which shall be used for filing tax returns upon attaining the requisite age.

“On completion of initial enrolment of resident individuals under the Huduma Act, the Commissioner (KRA) shall activate tax obligation of every resident individual above the age of eighteen years not registered as a taxpayer,” the Bill states.

The New ID will also be used in an official capacity such as marriage, access to government services, hospitals, and in filing tax returns.

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