The Kenya Revenue Authority (KRA) has adopted a collaborative approach with the Kenya Private Sector Alliance (KEPSA) to bolster voluntary tax compliance in the private sector.
According to a statement on June 12, the two entities recently held a high-level meeting seeking lasting solutions to enhance voluntary compliance, expand the tax base and build a predictable business environment through structured dialogue.
As a result, they agreed on the need to formalise joint technical working groups to address sector-specific tax challenges, develop taxpayer education programs for SMEs, and advance the mutual goal of simplifying the tax regime.
To boost compliance and bring more businesses into the formal fold, they committed to regular quarterly engagements and a shared monitoring framework to track progress on agreed actions.
The next joint forum is expected to focus on taxation in the digital economy, customs reforms, and investment incentives for the priority sector.
Speaking at the engagement, KRA board chairperson Ndiritu Muriithi highlighted the critical role of KEPSA in driving this compliance, highlighting the importance of such trusted partnerships.
“KEPSA plays a vital role in representing a cross-section of the private sector. Through structured engagement and shared insights, we can co-create solutions that ease compliance, unlock new revenue streams, and ultimately drive economic growth,” he said.
In his remarks, KEPSA Chairman Dr Jas Bedi backed Muriithi's sentiments, welcomed the partnership agreement, and asserted that the sector was a willing ally in strengthening the nation's fiscal framework.
“We appreciate KRA’s openness to continuous dialogue. This engagement ensures that tax reforms are practical, predictable and in alignment with the realities businesses face on the ground,” he said.
The move formed part of KRA's plan to expand the active taxpayer base from the then 9 million to 13 million by 2027, while simultaneously enhancing trust and transparency through stakeholder engagement.
As such, KEPSA pledged to support the efforts by mobilising its membership base for outreach, feedback, and policy dialogue forums.
It also commended KRA for the recent tax amnesty initiative, which provided a fresh start for businesses and individuals seeking to regularise their tax affairs.
