, NAIROBI, Kenya, Oct 24 – President Uhuru Kenyatta has signed the Finance Act 2013 into law.
The Act amends the Customs and Excise Act by introducing a Railway Development Levy to be paid on all goods imported into the country for home use.
The levy will be charged at a rate of 1.5 percent of customs value of the goods and will be paid by the importer.
This will provide funds for the construction of standard gauge railway network to facilitate transportation of goods.
“The levy shall be at the rate of 1.5 percent of the customs value of the goods and shall be paid by the importer of such goods at the time of entering the goods for home use,” the Act states.
The relevant paperwork for the signing of the Act was presented to the President by National Assembly Speaker Justin Muturi at State House.
The move is expected to mobilize additional Sh15 billion to fund construction of the 1,300 kilometres standard gauge railway line from Mombasa to Kisumu.
This is one of the key flagship projects under the Vision 2030 national development strategy and will be part of the bigger 2,937 kilometres railway line which will connect Kenya, Uganda and Rwanda.
The Heads of State from the three East Africa Countries signed a bilateral agreement in May this year to jointly construct the railway line.