Huduma Namba to Replace KRA PIN in Proposed Law

Huduma Namba is to replace Personal Identification Number(PIN) issued by Kenya Revenue Authority(KRA) Personal Identification for purposes of bringing more individuals and businesses to the tax bracket.

The Huduma Bill 2021 seeks to amend The Tax Procedures Act (No. 29 of 2015) so that all individuals enrolled into the National Integrated Identity Management System(NIIMS) established under the Huduma Act shall by default be registered as a tax payer upon the attainment of the age of 18 years.

The Bill 2021 proposes that every Kenyan with a Huduma Namba will automatically be registered as a taxpayer upon attaining 18 years of age and that all civil registration and immigration services are to be collapsed under the Huduma Namba.

The Bill also seeks to amend the Elections Act No, 24 of 2011 to allow the IEBC to use the information contained under the NIIMS database to compile, maintain, revise and update the voters’ register.

One of the observed shortcomings of Kenya’s identity ecosystem is the fact that the two identity modes-the foundational and functional systems-have little interoperability.

Foundational Systems are civil registrations meant to provide general identification for official purposes such as national ID, Birth certificate and refugee registrations while functional systems are registrations for a particular service or transaction such as health cards, passports and driving licences, each relating to a particular agency.

The National ID despite having all the personal data details, including biometrics, has little utility in functional areas. This failure to have linkage between foundational and functional systems has led to duplication in registration of persons, wastage of resources and diminution of trust in the identity ecosystem.

The Huduma Bill 2021 seeks to adopt the foundational identity system model that establishes the NIIMS that will be the primary base for both foundational and functional data, from which every other database with personal data of residents such as databases of voters, taxes and social services, will be built.

 According to the Memorandum of Objects and Reasons, the Huduma Bill will create an efficient identity system that will present opportunities for fiscal savings, development of a digital economy and enhanced public and private sector service delivery.

NIIMS will operate as a single source of personal data for all citizens and residents in Kenya and will include the NIIMS data base, Huduma Namba and Huduma Card.

If the Bill is passed into law, KRA will be required to activate tax obligation of every citizen above the age of 18 years who is not registered as a taxpayer.

The law requires anyone with a PIN to file tax returns irrespective of their employment status.

Children who have enrolled into the National Integrated Identity Management System (NIIMS) or Huduma Namba will by default be registered as a taxpayer upon hitting 18 years.

The Bill requires that upon enrolment of a newborn or any other child, a certificate of birth containing Huduma Namba shall be generated from the NIIMS database.

Kenyan adults will need this new ID to access government services, such as getting treatment at State hospitals, marrying or filing tax returns.

Under the Data Protection Act, a public officer who shares personal data with a third party without permission risks a fine of KSh500,000 or two years in jail or both.

The Bill imposes a KSh5 million fine or five years’ imprisonment to individuals who unlawfully and intentionally disclose and disseminate Huduma Namba information.

The Bill defines foundational data to include an individual’s full name, date of birth, place of birth, gender, photograph, biometric data and nationality.

Those who give false information or make false declarations for Huduma Namba registration also face KSh3 million fine or three years in prison.

ALSO READ: Kenya Govt to Disable PINs of tax Cheats

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