NAIROBI, Kenya, Aug 21 – Kenya Revenue Authority (KRA) has announced plans to enhance technology in the tax system following a directive from Cabinet Secretary for National Treasury John Mbadi.
The taxman says the move is meant to drive up revenue collection.
Mbadi in a statement emphasised the necessity of adopting innovative and technologically advanced strategies to streamline tax administration and improve operational efficiency.
He underscored the importance of continuous modernisation in tax administration, highlighting the significant role technology plays in reforming taxpayer services and enhancing the overall experience for Kenyan citizens.
“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,” said Mbadi.
He stressed that technological advancement is key to achieving these goals, noting that it is critical for reforming taxpayer services, improving operational efficiency, and bolstering revenue collection.
Likewise, Mbadi called for an expansion of the tax base, particularly in traditionally hard-to-tax sectors.
He assured that the National Treasury would support KRA through the development of policies aimed at guiding revenue mobilisation efforts.
Among the instruments cited by the CS was the National Tax Policy, which he described as a cornerstone for expanding the tax base, enhancing fairness and equity in the tax system, and creating certainty and predictability in tax rates.
In line with these objectives, the Cabinet Secretary highlighted the importance of the Medium-Term Revenue Strategy (MTRS), which he believes can enable KRA to meet its revenue targets effectively.
He announced that he would chair the Steering Committee on the Implementation of the MTRS during the fiscal year to ensure the strategy remains on track.
The goal is to achieve a tax-to-GDP ratio of 20 percent over the medium term.
