THE MISCELLANEOUS FEES AND LEVIES (AMENDMENT) BILL, 2025
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Expanded Purpose for Railway Development Levy
The Bill expands the purposes for which the Railway Development Levy funds can be used. Previously focused on the construction and operation of a standard gauge railway network, the new purposes under Section 8(3) of the principal Act include:
- Financing the development and construction of railway transport infrastructure.
- Ensuring the safety and economic regulation of railway infrastructure.
- On approval from the Cabinet Secretaries responsible for railway transport, the rehabilitation of railway transport infrastructure.
Establishment of Railway Development Levy Fund and Board
The Bill establishes a new Railway Development Levy Fund into which all proceeds of the levy shall be paid. Alongside this, it creates the Railway Development Levy Fund Board (Section 8(4A)), which is a body corporate with perpetual succession and a common seal, capable of suing, being sued, acquiring property, entering contracts, and discharging its functions. The Board is responsible for administering and managing the Fund.
Composition of the New Railway Development Levy Fund Board
The newly established Railway Development Levy Fund Board will consist of (Section 8(4B)):
- A chairperson appointed by the President from among the members appointed under paragraph (e).
- The Principal Secretary responsible for railway transport.
- The Principal Secretary responsible for finance.
- The Attorney-General.
- Five other non-public officer members with expertise in infrastructure finance, law, investment, or public-private partnerships, appointed by the Cabinet Secretary responsible for railway transport.
- The Secretary to the Railway Development Levy Fund Board, who is an ex-officio, non-voting member.
Financial Provisions and Regulations for the Fund
The Bill outlines specific financial mechanisms and regulatory powers for the Fund:
- The Cabinet Secretary shall make regulations for the recruitment of staff, management, administration, and usage/apportionment of monies from the Fund (Section 8(4C)).
- Up to ninety per cent (90%) of the Railway Development Levy Fund may be used to secure additional funds for railway transport infrastructure development (Section 8(4E)).
- Administrative costs of the Fund shall not exceed zero point five per cent (0.5%) of the Fund (Section 8(4F)).
- All monies must be paid into accounts approved by the Cabinet Secretary: a Fund account, a general account for ordinary purposes, and a special account for disbursed additional secured funds (Section 8(4G)).
Quarterly Reporting and Auditing
The Railway Development Levy Fund Board is mandated to submit reports to the Cabinet Secretary and the Cabinet Secretary responsible for railway transport at least once every three months (Section 8(4I)). These reports must detail the inflows, outflows, and balances of the accounts established for the Fund. All transactions related to the special account must be recorded, reported on, and audited in accordance with the Public Finance Management Act (Cap. 412A), the Public Audit Act (Cap. 412B), and other relevant laws (Section 8(4H)).
Bill No.
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Gazette No.
Supplement No. 214 (National Assembly Bills No. 57)
Background
This Bill, cited as "The Miscellaneous Fees and Levies (Amendment) Bill, 2025," seeks to amend the Miscellaneous Fees and Levies Act (Cap. 469C). Its primary objective is to broaden the scope and purpose of the existing Railway Development Levy, establish a dedicated fund for its proceeds, and create a corporate board to manage and administer this fund, along with clarifying the role of the Commissioner-General.
Key Amendments
Amendment to Section 3 of Cap. 469C
Section 3(1) of the principal Act is amended by inserting the phrase "unless otherwise provided for" after "The Commissioner shall". This clarifies the Commissioner-General's role by acknowledging instances where another authority might be mandated by the Act.
Amendment to Section 8 of Cap. 469C
Section 8, which deals with the Railway Development Levy, undergoes significant amendments:
- Expanded Purpose of Levy (Section 8(3)): The Bill deletes the existing subsection (3) and replaces it to expand the purposes of the levy. The funds shall now be used for:
- Financing the development and construction of railway transport infrastructure.
- The safety and economic regulation of railway infrastructure.
- On approval from the Cabinet Secretary for railway transport, the rehabilitation of railway transport infrastructure.
- Establishment of Railway Development Levy Fund (Section 8(4)): The Bill deletes the existing subsection (4) and replaces it with a provision that establishes a Railway Development Levy Fund. All proceeds from the levy are to be paid into this Fund, which shall vest in the Board established under the new subsection (4A).
- Establishment of Railway Development Levy Fund Board (Section 8(4A)): A new subsection (4A) is inserted to establish the Railway Development Levy Fund Board as a body corporate. This Board will have perpetual succession, a common seal, and the capacity to sue and be sued, acquire property, enter contracts, and perform all functions necessary for its mandate under the Act.
- Composition of the Board (Section 8(4B)): A new subsection (4B) details the composition of the Board:
- A chairperson appointed by the President from members under paragraph (e).
- The Principal Secretary responsible for railway transport.
- The Principal Secretary responsible for finance.
- The Attorney-General.
- Five non-public officer members appointed by the Cabinet Secretary for railway transport, possessing expertise in infrastructure finance, law, investment, or public-private partnerships.
- The Secretary to the Board, who is an ex-officio non-voting member.
New Obligations
- Regulatory Powers of Cabinet Secretary (Section 8(4C) and (4D)): The Cabinet Secretary is mandated to make regulations concerning the recruitment and appointment of the Board's Secretary and staff, the management and administration of the Fund, and the usage and apportionment of monies from the Fund. These regulations must adhere to Section 24 of the Public Finance Management Act (Cap. 412A).
- Securing Additional Funds (Section 8(4E)): A proportion not exceeding ninety per cent (90%) of the Fund may be used to secure additional funds for the development and construction of railway transport infrastructure.
- Administrative Costs (Section 8(4F)): The administrative costs of the Fund are capped at zero point five per cent (0.5%) of the Fund.
- Account Establishment (Section 8(4G)): The Board, with Cabinet Secretary approval, must establish specific accounts for all monies accruing to the Fund: a Fund account, a general account for ordinary purposes, and a special account for disbursing additional secured funds.
- Reporting and Auditing (Section 8(4H) and (4I)): The Board must submit quarterly reports (at least every three months) to the relevant Cabinet Secretaries, detailing the inflows, outflows, and balances of the accounts. All transactions for the special account must be recorded, reported, and audited in accordance with the Public Finance Management Act (Cap. 412A), the Public Audit Act (Cap. 412B), and other applicable laws.
Penalties
The provided bill text does not explicitly mention new penalties.
Transitional Provisions
The provided bill text does not explicitly mention transitional provisions.
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