KRA Asks Kenyans for Help to Reach Ksh1.57 Trillion Target

Kenya Revenue Authority signage on a building
Kenya Revenue Authority signage on a building
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The Kenya Revenue Authority (KRA) is counting on voluntary information from Kenyans to help achieve the revenue target of Ksh1.57 trillion in the 2020/21 financial year.

According to the KRA Commissioner General Githii Mburu, the tax body expects increased participation from the public in reporting tax evasion and bribery cases.

The authority has set up a web-based anonymous portal slated to be rolled out during the second half of the financial year. Mburu said that the whistleblowers' identities would be concealed.

KRA Boss James Githii Mburu gives an address during a past event
KRA Boss James Githii Mburu speaks at a conference in 2019
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Previously, the tax body relied on telephone calls, emails and physical visits to get information from the public.

The avenues however could not guarantee the safety of the whistleblowers as they were required to submit their personal details.

During the first half of 2020/21 KRA collected Ksh 673.6 billion, a drop from the projected Ksh 783.82 billion.

The drop was majorly attributed to the effects of the Covid-19 pandemic. Furthermore, the government offered tax reliefs to Kenyans to boost the economy and offset the adverse effects of the pandemic.

In order to achieve the set target, the tax body has to collect Ksh894.03 billion in the second half of the financial year 2020/21.

This has seen KRA intensify its efforts by implementing new tax measures including digital service tax, minimum alternative tax, voluntary disclosure programme.

The implementation of the minimum tax, which took effect on Friday, January 1, targets businesses whether they are making profits or not. The rate of Minimum Tax is 1 percent of the gross turnover of the company.

The digital service tax saw business operations conducted online attract a tax of 1.5 percent on the value of goods supplied or services offered through digital platforms.

In addition, the tax body unveiled the voluntary disclosure programme which grants partial tax relief to businesses and individuals after they disclose their tax liabilities to the Authority. 

Times Tower
Times Tower, KRA headquarters in Nairobi
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