ADVOKS GLOBAL · KENYA
Miscellaneous Fees and Levies Act
8. Railway development levy
Edition: 2026-07-01 · In force
8. Railway development levy
(1)There shall be paid a levy to be known as the railway development levy, on all goods imported into the country for home use.(2)The levy shall be at the rate of two per cent of the customs value of the goods and shall be paid by the importer of such goods at the time of entering the goods into the country for home use.(3)The purpose of the levy shall be to provide funds for—(a)financing the development and construction of railway transport infrastructure;(b)the safety and economic regulation of railway infrastructure; and(c)on the approval of the Cabinet Secretary and the Cabinet Secretary responsible for matters relating to railway transport, rehabilitation of railway transport infrastructure.(4)There is established a fund known as the Railway Development Levy Fund, into which the proceeds of the levy shall be paid, and which shall vest in the Board established under subsection (4A).(4A)There is established a board known as the Railway Development Levy Fund Board which is a body corporate with perpetual succession and a common seal and shall, in its corporate name, be capable of—(b)taking, purchasing, charging and disposing of movable and immovable property;(c)entering into contracts; and(d)doing or performing all other things necessary for the proper discharge of its functions under this Act which may be lawfully done or performed by a body corporate.(4B)The functions of the Board shall be to—(a)formulate the strategic direction of the Fund including strategic plans, investment plans and policies;(b)set up administrative, governance and financial management structures of the Fund;(c)oversee the administration and management of the Fund;(d)coordinate the optimal utilization of the Fund in implementing programmes relating to the purpose for which the Fund is established;(e)supervise the performance of the Secretary to the Board, officers and staff of the Fund;(f)approve and review the annual work programme and budget of the Fund;(g)approve, with the concurrence of the Cabinet Secretary, the investment policy, investment plan and risk threshold of the Fund;(h)invest the funds of the Board not immediately required for the purposes of this Act in such a manner as it may determine; and(i)perform any other function necessary to promote the objects and purpose of the Fund.(4C)The Railway Development Levy Fund Board shall consist of—(a)a chairperson appointed by the President from among the members appointed under paragraph (e);(b)the Principal Secretary responsible for matters relating to railway transport;(c)the Principal Secretary responsible for matters relating to finance;(e)five other members, who shall not be public officers, appointed by the Cabinet Secretary responsible for matters relating to railway transport, with expertise in infrastructure finance, law, investment or public-private partnerships; and(f)the Secretary to the Railway Development Levy Fund Board who shall be an ex-officio member without any right to vote at the meetings of the Board.(4D)A person appointed as a member of the Board under this Act, other than an ex-officio member, shall serve for a term of three years and be shall be eligible for reappointment for a further and final term of three years.(4E)A member of the Board, other than an ex-officio member, may—(a)at any time resign from office by notice in writing—(i)in the case of the chairperson, to the President; or(ii)in the case of a member, to the chairperson;(b)be removed from office if the member—(i)has been absent from three consecutive meetings of the Board without the permission of the chairperson;(ii)is adjudged bankrupt or enters into a composition scheme or arrangement with his or her creditors;(iii)is convicted of an offence involving dishonesty or fraud;(iv)is convicted of a criminal offence and sentenced to imprisonment for a term exceeding six months or to a fine exceeding ten thousand shillings;(v)is incapacitated by prolonged physical or mental illness or is deemed otherwise unfit to discharge his or her duties as a member of the Board.(4F)The Cabinet Secretary shall make regulations to provide for—(a)the recruitment and appointment of the Secretary to the Railway Development Levy Fund Board and other officers and staff of the Fund;(b)the management and administration of the Railway Development Levy Fund;(c)the usage and apportionment of monies from the Railway Development Levy Fund for the purposes for which the Fund is established; and(d)the conduct of affairs and regulation of the business of the Board.(4H)For the purposes of subsection (4F)(c), a proportion of the Railway Development Levy Fund not exceeding ninety per cent of the Fund may be used to secure additional funds for the purposes provided under subsection (3)(a).(4I)The administrative costs of the Fund shall not exceed zero point five per cent of the Fund.(4J)All monies accruing to the Fund shall be paid into the following accounts established by the Board with the approval of the Cabinet Secretary—(b)a general account, which shall be applied towards the ordinary purposes of the Fund; and(c)a special account, into which shall be paid and from which shall be disbursed the additional funds secured pursuant to subsection (4H).(4L)The Board shall submit to the Cabinet Secretary and the Cabinet Secretary responsible for matters relating to railway transport, at least once every three months, and annually to the National Assembly, reports detailing the inflows, outflows, and balances of the accounts established pursuant to subsection (4J).(6)No levy shall be charged in respect of the goods specified in Part B of the Second Schedule when imported or purchased before clearance through customs.Case law referring to this provision