NAIROBI, Kenya- In a push to modernize Kenya’s tax system, Treasury and Economic Planning Cabinet Secretary John Mbadi has called on the Kenya Revenue Authority (KRA) to embrace technology.
This strategic move aims to streamline tax collection processes, broaden the tax base, and ultimately boost the nation’s revenue.
During a recent meeting with KRA officials, CS Mbadi emphasized the importance of continuous modernization in tax administration.
“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 adopting advanced technology in tax administration would simplify transactions for taxpayers and streamline business processes, ultimately leading to higher efficiency and transparency.
One of Mbadi’s key concerns is the protection of existing businesses from excessive taxation.
To address this, he urged the KRA to develop strategies that would expand the country’s tax base.
By bringing more entities into the tax net, the government can safeguard businesses from heavy tax burdens while still increasing overall revenue.
The reforms are expected to raise Kenya’s tax-to-GDP ratio from the current 11.5pc to a more robust figure in the medium term.
Mbadi also mentioned that he would chair the Steering Committee on the Implementation of the Medium-Term Revenue Strategy during the fiscal year.
The goal? To ensure the country achieves a tax-to-GDP ratio of 20pc over the medium term—a significant leap that would place Kenya on a stronger fiscal footing.
KRA Commissioner General Humphrey Wattanga echoed Mbadi’s sentiments, announcing plans to overhaul the authority’s IT infrastructure.
The focus will be on adopting technologies like data science, machine learning, and artificial intelligence (AI) to enhance operational efficiency, ensure compliance, and elevate service delivery standards.
“The adoption of cutting-edge technologies will strengthen our operational efficiency, ensure compliance, and elevate service delivery standards,” Wattanga stated.
These advancements are not just about making the system faster; they’re about making tax administration more accessible and transparent for everyone involved.
The integration of such technologies is anticipated to create a seamless experience for taxpayers, simplifying tax processes, and ultimately boosting overall revenue performance.
