Kenyans will soon be asked to have a Huduma Namba in order to send cash or do any other digital money transactions. According to a report that appeared in the Daily Nation on Thursday, the Central Bank of Kenya is moving to include the Huduma Namba into the national digital payment system dubbed the National Integrated Identity Management System (NIIMS).
The daily reported that the CBK is arguing that using the Huduma Namba will reduce fraud which is largely associated with mobile money transfer.
“The expected roll-out of NIIMS, commonly known as Huduma Namba, will provide a key impetus to further deepen the adoption, safety and robustness of digital payments,” CBK was quoted in its newly launched National Payments Strategy (NPS) report for the 2022-2025 period.
This new move to is likely to affect M-Pesa users, at a time when M-Pesa has become the primary and most popular means of sending and receiving money in the country.
Huduma Namba is also set to replace KRA PIN Number in a move by the government that is aimed at squeezing tax cheats in the country. These changes will be effected through the Huduma Namba Bill, 2021, which is seeking to amend the Tax Procedure Act to make biometric ID the key number for identifying taxpayers.
This will ensure that children who hold the Huduma Namba will be automatically listed as taxpayers when they attain the age of 18 years.
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In addition, all adults with the Huduma Namba will be converted into taxpayers. This will see the taxman’s revenue base expand from the current 5.5 million. “Huduma Namba assigned to an individual under the Huduma Act, 2021 shall serve as PIN for the purpose of tax law,” the Bill says. “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.”
