The National Treasury, Kenya Revenue Authority (KRA), development partners and bilateral have embarked on the development of a revenue strategy to enhance domestic revenue mobilization over the medium term.
The strategy will aim to improve efficiency in the administration of tax laws, create tax rates that enhance compliance and build tax base.
The Cabinet Secretary National Treasury and Economic Planning Prof Njuguna Ndungu said the strategy is expected to strengthen policy dimension towards fiscal consolidation process with a target to achieve the East African Community convergence criteria of fiscal deficit of 3 per cent of GDP.
“Domestic resource mobilization remains a long-term source of financing development across the world, in order to address this, a strong framework for guiding tax reforms is necessary to enhance resource mobilization,” said Njuguna Ndung’u, Cabinet Secretary National Treasury and Economic Planning.
Speaking during the Kenya Revenue Authority Taxpayers’ Day in Mombasa, President William Ruto said The Kenya Revenue Authority will be rebuilt to a service-oriented organisation.
President Ruto said he is keen on restoring KRA’s image to inspire voluntary tax compliance.
The President observed that KRA will no longer be a suppressive entity driving taxpayers into terror in the name of revenue collection.
The prouncement aligns with the Government’s commitment to decriminalising entrepreneurship and fostering a pro-business environment, ultimately broadening the tax base.
To enhance transparency and accountability, the Government will present to Kenyans an elaborate formal account of how the resources have been used.
“There is no space for wastage and corruption. Our tolerance for corruption is zero,” he said.
The President appealed to unregistered Kenyans to sign up for KRA and make their contribution to the country’s development agenda.
KRA targets to collect Sh2.768 trillion by the end of the Financial Year 2023/2024 and surpass the Sh3 trillion mark by the Financial Year 2024/2025.
The taxman collected Sh586.9 billion in the period July-Sept 2023 compared to a collection of Sh541.6 billion during the same period last year.
According to KRA, the rolling out of the tax amnesty programme has also enhanced collection after it collected Sh3.4 billion since September 1, 2023.