The Document You Must Now Produce Before Opening Bank Account
- Commercial banks are now making a must-meet demand from Kenyans wishing to open new bank accounts.
Banks in the country are asking people to provide their Kenya Revenue Authority (KRA) Personal Identification Number (PIN) before issuing them with accounts.
In November 2017, the Central Bank of Kenya (CBK) instructed all banks to ask for KRA pin for new accounts.
However, this directive is being followed so late after CBK and KRA started piling pressure on the banks.
Some lenders have also instructed the existing account holders to supply the same details.
The decision was made after the amendment of the Tax procedures Act (TPA) of the 2016 finance bill.
The banks have never strictly adhered to this condition despite it being in the ‘know your customer policy.’
The move by KRA is meant to seal revenue leakages and apprehend those evading tax payment.
This is done with the hope that the tax collector will help raise revenue to fund the Ksh3 Trillion Kenyan budget.
In the financial year 2017/2018, KRA fell short of Ksh100 Million lost through tax evasion.