Kenya Revenue Authority (KRA) has begun the merging of various taxpayer brackets with an emphasis on digital migration to smoothen tax collection and deal with any challenges that arise.
The changes are part of the broader review of operations at KRA mandated by President William Ruto in 2023. The goal is to create a ‘service-orientated organisation’ Ruto said.
According to a statement issued on Friday, February 21, KRA will be integrating the large and medium taxpayers—encompassing businesses and entities with substantial annual revenues—into a core functional area and the micro and small taxpayers—micro, small, and medium-sized enterprises (MSMEs), many of which operate in the informal sector—as another core functional area.
This move is aimed at growing the tax base, besides offering personalised support for taxpayers.
“With this change and through the relationship management framework, taxpayers can expect more personalised support and attention to their unique compliance needs,” KRA said.
As part of the changes at KRA, there will be a new department, the Business Strategy Technology and Enterprise Modernisation Department.
According to KRA, the department will, among other things, be tasked with providing an efficient and seamless process of filing taxes.
It will achieve this by reducing redundancies, optimising internal resources, and leveraging advanced analytics and automation.
“KRA remains committed to ensuring a smooth transition during this period and reassures the public that service delivery will continue uninterrupted,” KRA said.
In 2023, President Ruto asked KRA to make the changes to restore KRA’s image to inspire voluntary tax compliance.
Speaking during the Kenya Revenue Authority Taxpayers’ Day in Mombasa, Ruto said technology such as the national digital identity will be adopted to enhance revenue mobilisation.
“There is no space for wastage and graft. Our tolerance for graft is zero,” he said.
KRA has a revenue target of Ksh2.47 trillion for the 2024/2025 financial year but missed it by Ksh163.46 billion in the first half.
The authority targets to collect Ksh1.695 trillion in the second half of the year.
