KRA to Overhaul Tech for Boosted Revenue, Says Mbadi

Cabinet Secretary for National Treasury John Mbadi has directed the Kenya Revenue Authority (KRA) to embark on a comprehensive technological overhaul.

The revenue authority says the move is anchored on scaling up revenue collection.

Cs Mbadi in a statement, emphasized the necessity of adopting innovative and technologically advanced strategies to streamline tax administration and improve operational efficiency.

He underscored the importance of continuous modernization in tax administration, noting the significant role technology plays in reforming taxpayer services.

“Our modernization journey must align with our objectives and those of taxpayers. This approach will not only benefit taxpayers but also significantly boost our revenue mobilization efforts,” said Mbadi.

Consequently, he stressed that technological advancement is key to achieving these goals, noting that it is critical for reforming taxpayer services, improving operational efficiency, and scaling up revenue collection.

Mbadi further called for an expansion of the tax base, particularly in traditionally hard-to-tax sectors.

Among the instruments cited by the CS was The National Tax Policy, which he descrbed as a cornerstone for expanding the tax base, enhancing fairness and equity in the tax system, and creating certainty and predictability in tax rates.

The Cabinet Secretary highlighted that the Medium-Term Revenue Strategy (MTRS) will enable KRA to meet its revenue targets effectively.

He announced that he will chair the Committee on the Implementation of the MTRS during the fiscal year to ensure the strategy remains on track.

The KRA objective is to achieve a tax-to-GDP ratio of 20 percent over the medium term.