Gov’t Plans to Replace KRA PIN with Huduma Namba

Huduma Namba is set to replace the current Kenya Revenue Authority (KRA) personal identification number (PIN) if a new bill sails through.

The Huduma Namba Bill, 2021 seeks to amend the Tax Procedure Act to make the Huduma Namba biometric ID the key number for identifying taxpayers in a move aimed at nabbing tax cheats. 

Should MPs adopt the proposed law, children with Huduma Namba IDs will automatically be listed as taxpayers upon hitting 18 years and will be required to start filing annual tax returns irrespective of their income or employment status.

Business Daily reports that the amendment is part of KRA’s efforts to net in more taxpayers as it grows its revenue streams in a bid to meet collection targets. “Huduma Namba assigned to an individual under the Huduma Act, 2021 shall serve as PIN for the purpose of tax law,” the bill reads in part.

Under the proposed law, newborns and kids who have been listed in the National Integrated Identity Management System (NIIMS) will be issued a certificate of birth containing a Huduma Namba which shall be used for filing tax returns upon attaining the requisite age.

“On completion of initial enrolment of resident individuals under the Huduma Act, the Commissioner (KRA) shall activate tax obligation of every resident individual above the age of eighteen years not registered as a taxpayer,” the bill adds.

Further to this, Huduma Namba ID will be used in an official capacity such as marriage, access to government services, and hospitals. In the year to June 2021, the number of taxpayers who filed returns stood at 5.5 million while official data shows that Kenyans above 18 years are 25.64 million.

At least 37 million Kenyans, including 20 million adults and 17 million minors, registered for Huduma Namba during the first mass listing exercise in 2019.

Last year, the government said the current national identity cards would be phased out by December 2021, and replaced by Huduma Cards. Huduma Namba is described as the single source of personal identification for Kenyans, and persons resident in Kenya.