Introduction
The Business Laws (Amendment) (No.2) Act of 2021 (the
Act) came into force on 31 March 2021 seeking to facilitate ease of doing business in Kenya. In this first part of the series, we highlight the key changes to the laws listed below. The second part will address the effect of the Act on the Insolvency Act, 2015.
Law of Contract Act (Cap 23 Laws of Kenya) (the LCA)
The meaning of “signing” as defined under the LCA has been expanded to clarify that contracts entered into by companies should be executed according to the Companies Act. Recently, the Companies Act was amended to delete the use of a common seal as means through which a company signs contracts. Therefore, contracts entered into by companies should be executed (i) by two authorised signatories, (ii) by a director of a company in the presence of a witness who attests the director’s signature, or (iii) by a duly appointed attorney.
Dilemma of choosing a career after high school by GODFREY KIMEGA Image: FILE
• Students face tough choices on their futures as KCSE draws to a conclusion
Aeronautical engineering or medicine? Agriculture or nursing? Bachelor of Commerce or Bachelor in Journalism? Law or theology? These are the questions more than 750,000 high school leavers in Kenya face as they complete their final examination this month.
It s not just school leavers who are pondering these dilemmas. Parents and guardians are wondering what courses their children should take, courses that will help them get well-paying jobs when graduating a few years from now. Financial considerations also come to mind because prestigious courses such as law and medicine generally cost more compared to commonly offered courses, such as marketing and accounting.
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NSSF, NHIF dues to be remitted on single date to tame non-compliant employers
Tuesday January 12 2021
By PATRICK ALUSHULA
Summary
The changes are aimed at supporting a smooth implementation of a unified payroll system which the Kenya Revenue Authority (KRA) recently rolled out for joint declaration and payment of the three deductions as well as Pay-As-You-Earn (PAYE).
This will be a departure from the current practice where NSSF and NHIF deductions are submitted by the 15th and the 9th of every month, respectively while training levies are remitted on the 10th day of every month.
The portal will allow all the four institutions to monitor statutory payments coming from each employer, making it easier to analyse, reconcile and pick out non-compliance.
Govt Moves to Tame Rogue Employers in New Law
A group of staffers at a boardroom.
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The government s plan to reign in on non-compliant employers who fail to remit statutory deductions for their employees will get a boost if parliament passes a new bill.
The Business Laws (Amendment) (No 2) Bill 2020 proposes that workers contributions to the National Social Security Fund (NSSF), National Hospital Insurance Fund (NHIF) and National Industrial Training Authority (NITA) be remitted on the same date (9th of every month).
The alignment of the dates is to facilitate the harmonisation of the deductions to curb employers evasion of the same.