KRA has partnered with Ecobank to incorporate digital payment and collection solutions at border points to streamline tax collection. “Ecobank payzone” at various border points will enable clearing and forwarding agents, foreigners, and Kenyans to pay taxes.
KRA hopes to move away from the traditional payment systems where now taxpayers can use digital platforms such as mobile banking, internet banking, cards, and point of sales.
Ecobank’s Xpress point agents accept cash deposits, cash withdrawals, and tax payments through a virtual account meaning that clients need not have a bank account. Ecobank’s Head of Transactional services group, Robert Kola said that the point of sale (POS) machines accept Visa cards, Mastercard, and China Union Pay.
KRA expects benefits such as convenience and flexibility for the taxpayer. Josephat Omondi, KRA’s deputy commissioner for finance said,” the digitization has been deployed across various KRA stations – Namanga, LungaLunga, JKIA, Busia, Eldoret Airport, Lamu, Busia, Malaba, and Loitoktok.”
In addition, there are low-security risks associated with cash transactions especially involving bulk cash with digital payment being time-saving as the taxpayers need not visit the bank physically.
