The Kenya Revenue Authority is set to raise revenue to GDP ratio to 19.2 per cent in 2020/21 from the current 18.3 per cent in 2017/18.
Through its 7th Corporate Plan running from 2018-2021, KRA also expects to collect Ksh6.1 trillion of core revenues – Exchequer revenues, Road Maintenance Levy Fund (RMLF) and Railway Development Levy (RDL) – requiring an annual revenue growth of 12.9 per cent.
Key among the Plan’s strategies and programs is tax base expansion aimed at raising the number of active taxpayers from 3.94 million to 7 million by implementing a segmented approach to deal with the identified sectors.
During the launch presided over by the Cabinet Secretary for National Treasury Henry Rotich, the KRA management expressed optimism that the blueprint will steer the authority to a success in tax administration and consequently the Big Four Agenda.
“I believe a lot of effort has been put in the development of the 7th Corporate Plan and is expected to be a pivot in the success of the Big 4 Agenda,” said Mr. Rotich.
He said the blueprint focuses on the country’s development agenda as spelt out in the Kenya Vision 2030, the Third Medium Term Plan (MTP 2018-2022), the Budget Policy Statement 2018 and the Big Four Agenda.
“We undertake to work with KRA and all stakeholders to continuously develop appropriate policies and review of the regulatory regimes to meet the needs of all Kenyans,” he added.
KRA board chair Amb Francis Muthaura noted that one of the fundamental drivers that will guide this plan is transformation agenda. The key focus of this transformation agenda is to become more customer-focused with a view to enhance compliance among the taxpayers.
“I am optimistic that we have the right ingredients necessary in making the dreams outlined in this ambitious plan a success,” he added.
On his part, the Commissioner General John Njiraini said that the 7th Corporate Plan is designed to give priority to key national flagship drivers which project a transformed and a self-reliant nation in the years to come.
“These drivers include the Vision 2030, the Big Four Agenda, Third Medium Term Plan (MTP 2018-2022) and the 2018 Budget Policy Statement,” noted Mr Njiraini.
According to the Commissioner General, KRA’s approach and engagement with the customers has significantly been shifting from enforcement to a more facilitative approach, which has for a long time been associated with the private sector.
He said revenue mobilisation is through transformation, data-driven decision-making and tax base expansion.
