Embracing Technological Innovation: Kenya's Strategic Shift in Revenue Collection

In an era where technological advancements continue to reshape global economies, Kenya is not being left behind. National Treasury and Economic Planning Cabinet Secretary, John Mbadi, has underscored the pressing need for the Kenya Revenue Authority (KRA) to adopt innovative and technologically advanced strategies to enhance its revenue collection capabilities.

Speaking during a meeting with KRA staff, Mbadi highlighted the critical role that continuous modernisation in tax administration plays in streamlining business processes. He emphasized that leveraging cutting-edge systems will simplify tax transactions, making it easier for businesses and individuals to comply with tax obligations.

The CS pointed out that technology is a vital tool for reforming taxpayer services, improving operational efficiency, and ultimately enhancing revenue collection. He urged KRA to cast a wider net by expanding the tax base, particularly targeting sectors that have traditionally been difficult to tax. This will help shield existing businesses from the burden of excessive taxation, thereby fostering a more equitable tax system.

In support of KRA’s modernisation efforts, Mbadi assured that the National Treasury would back these initiatives by developing policies aimed at guiding revenue mobilisation,which aims to expand the tax base, enhance fairness and equity in the tax system, and create certainty and predictability in tax rates and tax bases. KRA Commissioner General, Humphrey Wattanga, echoed Mbadi's sentiments, announcing that the authority is poised to revamp its IT infrastructure.