NAIROBI, Kenya – Sweden has allocated an estimated Sh545 million to the Kenya Revenue Authority (KRA) to modernise revenue collection and strengthen tax compliance through a new data and business intelligence system.
The funding will support the Data Warehouse and Business Intelligence Programme under the Public Financial Management (PFM) reforms.
Treasury Principal Secretary Chris Kiptoo disclosed the support after meeting Sweden’s Ambassador to Kenya, Håkan Åkesson, on Wednesday, October 7.
Kiptoo said the Swedish contribution is being channelled through the PFM Reform Secretariat at the National Treasury.
“Sweden is also supporting the Kenya Revenue Authority to modernise revenue collection through the Data Warehouse and Business Intelligence Programme under the Public Finance Management reforms, at an estimated cost of Sh545 million,” Kiptoo said.
New System To Strengthen Tax Compliance
The programme is designed to bring together information from multiple internal and external sources used by KRA.
The consolidated data is expected to provide a more comprehensive view of individual taxpayers, allowing the authority to analyse potential tax compliance risks.
The system will also help KRA identify groups and areas requiring greater attention in tax administration.
The initiative is part of institutional cooperation between KRA and the Swedish Tax Agency, with Sweden providing technical advice, support and capacity development.
The investment comes as KRA continues efforts to use technology and data to improve revenue collection and strengthen tax administration.
Kenya, Sweden Deepen Economic Cooperation
The KRA support is part of broader cooperation between Kenya and Sweden covering areas including agriculture, energy and environmental sustainability.
Kiptoo and Åkesson also discussed the countries’ wider development partnership and opportunities for further cooperation.
“We discussed the excellent relations between Sweden and Kenya and explored future opportunities to deepen our cooperation. Looking forward to continuing our strong partnership for sustainable growth and development,” Åkesson said.
The engagement comes as Kenya and Sweden move to implement a new 2026-2031 development strategy focusing on mobilising private capital, digitalisation and the green transition.
Sweden Also Supports JKIA Modernisation
Sweden has also entered into an agreement with Kenya to support the modernisation of air traffic management systems at Jomo Kenyatta International Airport (JKIA).
Under the agreement, Swedish aviation consultancy Independent Business Group (IBG) will provide technical expertise and equipment covering airspace design, communications, navigation, surveillance and training.
The agreement forms part of the wider Sh154.2 billion JKIA modernisation project.
The two areas of cooperation underscore the broader focus on digitalisation, technology and institutional capacity as Kenya and Sweden implement their development partnership.
