NAIROBI, Kenya, Oct 25 – Kenya is eyeing to raise revenue to 25percent of Gross Domestic Product (GDP) from the current 20 percent in the next five years.
Treasury Cabinet Secretary Henry Rotich says this will be through tax reforms especially the modernisation of income tax with the Bill expected to be ready in the first half of 2017.
Rotich says other avenues of raising money will be targeting the informal sector as well as areas of transfer pricing.
“We plan to bring in more Kenyans in the tax bracket so as they contribute to building the country especially the informal sector,” he added.
He says the 25 percent growth will however take long as new taxes take time to be administered.
“South Africa is currently at 25 percent there are countries who are currently at 40 percent, we will work hard to grow our revenues in very few years possible,” he stated.
He says the move will see Kenya be self reliant and reduce debt in the future.
The Kenya Revenue Authority (KRA) collected a record Sh1.2 trillion during the 2015/2016 financial marking a 13.2 percent rise.
The amount was however against the Exchequer’s target of Sh1.2174 trillion which KRA missed.
The Micro, Small and Medium Enterprises have about 7.4 million establishments out of which only 1.56 million were licensed according to a new report by Kenya National Bureau of Statistics.