Gov't Extends Amnesty Period for Rich Kenyans with Billions Hidden in Foreign Accounts

The government has reassured rich Kenyans who have hidden their cash and assets abroad that they will not be pursued if they return them to the country.

National Treasury Cabinet Secretary Henry Rotich said government will not scrutinize how they acquired the wealth if they willingly bring it back to Kenya within the amnesty period.

However, Rotich said the exemption will not apply to those who accumulated wealth in foreign countries through crimes such terrorism, poaching and drug trafficking.

The law requires those returning the assets to declare the source of their riches to the Financial Reporting Centre, the anti-money laundering agency.

The amnesty, which was scheduled to end on December 2017, was extended for another six months after a delay by Kenya Revenue Authority (KRA) to release guidelines on repatriation of wealth stashed in foreign accounts.

“Despite the extension, the uptake of amnesty has been low partly due to concerns that when the monies are returned, questions will be raised regarding the source as required by the Financial Reporting Centre,” Mr Rotich said in the Budget Statement presented to the National Assembly Thursday.

“In order to encourage the uptake of the amnesty, I propose to extend the period of amnesty from 30th June, 2018 to 30th June, 2019 and the year of income declaration to be 2017.”

The tax forgiveness will be granted to Kenyans who declare income from their wealth abroad, including homes, for the period ended December 2017 by filing returns with the taxman and wiring the monies to bank accounts back home.

Those who fail to comply before the new December 2019 deadline will face a 20 per cent penalty on the tax payable for any undeclared income on top of the tax payable.