Kenya Bankers Association (KBA) CEO Habil Olaka said there are lenders that did not know what to collect and so never implemented the taxes during the period it remained in force.

“Since each bank is affected differently, we do not have an industry stand. Each is taking independent decision based on how it had interpreted the law,” Mr Olaka said on Wednesday.

The High Court suspended the new taxes imposed under the Finance Bill 2018, including those on mobile money and kerosene after KBA argued that “bank transfer” is vague and the Treasury had not defined it.

Court papers show that KBA was seeking to delay implementation of the duty until a proper definition of the term “money transferred by banks” is provided and sufficient time allowed for banks to alter computer systems to implement the charge of duty.

On Wednesday, Mr Olaka said that once banks get clear definition, it will take them up to three months to configure their systems to start deductions.

“We are therefore seeking three months period to comply with the tax once the court gives us clear definition,” he said.

The court then directed Kenya Revenue Authority and Attorney General to file and serve replying affidavits and thereafter, all parties to file and exchange written submissions. The hearing to highlight the submissions will happen next Monday.

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