The Kenya Revenue Authority (KRA) on Tuesday, April 29, announced a raft of measures to ensure tax compliance by members of the public.
Appearing before the National Assembly's Finance Committee, KRA officials revealed that the Authority had implemented stringent measures, including digital monitoring and real-time tax remittances, to curb tax evasion.
The officials also disclosed the Authority's plans to implement enforcement actions, third-party data collaboration, and conduct a public awareness campaign.
To further enhance tax administration, the Revenue Authority proposed several recommendations, among them increased collaboration with mobile network operators and the introduction of technological investments.
The Authority also announced plans for comprehensive tax returns, legal reforms, multi-agency collaboration, and tax incentives for voluntary disclosures.
Despite the measures to improve tax compliance, KRA officials decried several challenges within the sector, such as legal disputes and enforcement difficulties due to the sector's complexity.
To address these challenges and improve enforcement, the Authority urged the Committee to consider refining tax laws to close revenue loopholes and ensure all sector players fulfil their tax obligations.
During the meeting, KRA officials also detailed the applicable taxes for betting and gaming companies, which include excise duty, withholding income tax, betting and gaming tax, and corporation income tax.
The Committee also received clarification that the Aviator game is classified as a digital game of chance and is taxed under the same regulations as other betting and gaming activities.
Regarding revenue performance, KRA officials provided a detailed breakdown of revenue collected from betting and gaming tax heads for the 2023/24 and 2024/25 financial years.
The data provided by the Authority officials indicated a 15 per cent growth in total revenue collection for 2024/2025 up to March 2025 compared to the previous financial year.
The clarification by the KRA officials followed after the Committee members, led by Molo Member of Parliament, Kuria Kimani, sought a detailed explanation of the framework for taxing betting and gaming companies operating in Kenya.
