The Kenya Revenue Authority will now be collecting taxes 'legally' after the Finance Bill 2011/2011 was passed. The taxman had been collecting taxes illegally since January of 2012 to date.

KRA was collecting taxes in the months preceding January based on the Provisional Collection of Taxes and Duties Act.The provision allows KRA to collect taxes for six months without a Finance Act. On expiry of the six month period, parliament needs to give a fresh mandate to KRA to collect taxes.

There were calls to KRA to refund taxes on alcohol and cigarettes collected since January but KRA declined, citing failure of parliament to pass the bill and therefore disrupting operations.

The Finance Bill 2011/2012 was passed Thursday after long debates on the amendments proposals that had been made to the bill. It was passed on a 58 to 17 majority and is expected to be ascended to law by the president.