The Cabinet Secretary for the National Treasury and Economic Planning, Hon. John Mbadi, has urged the Kenya Revenue Authority (KRA) to adopt more innovative and technologically advanced strategies to enhance revenue collection.
Speaking at a recent meeting with KRA’s top leadership and staff, CS Mbadi emphasized the need for continuous modernization in tax administration to streamline business processes, leverage cutting-edge systems, and simplify tax transactions.
“Our modernization journey must align with our objectives and those of taxpayers. This approach will not only benefit taxpayers but also significantly boost our revenue mobilization efforts,” stated CS Mbadi.
Highlighting the transformative power of technology, the CS noted that it is crucial for reforming taxpayer services, improving operational efficiency, and enhancing revenue collection.
“Our commitment to this cause is evident in our national strategic policy reforms and the ongoing modernization of revenue administration processes,” he added. Furthermore, the CS urged KRA to expand the tax base, particularly in sectors that have traditionally been hard to tax. This, he stated, will help protect existing businesses from excessive taxation. CS Mbadi further said that NT will support KRA by developing policies to guide in revenue mobilization. He said that instruments such us The National Tax Policy will support the expansion of the tax base, enhance fairness and equity in the tax system and create certainty and predictability in tax rates and tax bases.
“Through the Policy, the KRA must ensure that we achieve higher tax compliance, enhance tax-payer experience and reduce tax expenditure to
Minimize market distortions and tax refund pressures. As outlined in the Policy, we shall develop a framework for granting tax incentives that are time-bound and growth-oriented,” said the CS.
He noted that implementation of short term policies such as the Medium-Term Revenue Strategy (MTRS) can enable KRA effectively collect and meet its revenue targets. “I will in the course of the fiscal year Chair the meeting of the Steering Committee on the Implementation of the Medium-Term Revenue Strategy to ensure we are all on track. The objective is to achieve tax to GDP ratio of 20 percent over the medium term,” added the CS.
During the meeting, KRA Commissioner General Humphrey Wattanga announced that KRA is set to revamp its IT infrastructure to establish reliable systems capable of responding proficiently to business demands. He stressed the importance of modernization in improving operational efficiency and enhancing KRA’s ability to identify and address potential tax evasion through data-driven decision-making. “The adoption of cutting-edge technologies, such as data science, machine learning, and Artificial Intelligence (AI), will strengthen our operational efficiency, ensure compliance, and elevate service delivery standards,” said Commissioner General.
He added that this technological development would not only simplify tax administration but also boost overall revenue performance and create a seamless experience for taxpayers.
The Commissioner General confirmed that KRA will continue implementing effective initiatives and robust policy reforms to enable the Authority to fulfill its mandate of collecting revenue on behalf of the government.
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