A combination of measures taken by the Kenya Revenue Authority (KRA) that included co-option of online earnings into the tax bracket and deployment of artificial intelligence has seen revenue collection jump from Ksh2.555 trillion ($19.75 billion) in the 2024/2025 financial year to Ksh2.571 trillion ($19.87 billion).

In addition, according to KRA Commissioner General Humphry Wattanga said KRA is increasingly relying on data analytics, Artificial Intelligence, Machine Learning and the Enterprise Application Programming Interface (API) platform to seal tax loopholes.

Through this platform (GavaConnect), h says, KRA has so far rolled out the Electronic Rental Income Tax System (eRITS).

This initiative, he notes, is a vital part of KRA’s long-term strategy to simplify tax processes, improve transparency and expand Kenya’s tax base. The API platform facilitates seamless integration between KRA’s systems and third- party platforms, allowing businesses, developers and service providers to automate tax-related services.

Equally, Wattanga posits revenue growth for the period under review is attributed to implementation of a number of measures, including taxation of the digital economy for the same period, which recorded a performance rate of 112 per cent after netting Ksh14.3 billion, translating to a 32 per cent growth from the Ksh10.8 billion collected in financial year 2023/24. These taxes are collected from non-resident taxpayers in the digital economy, including multinational digital companies.

In addition he said, adding that KRA has also deployed Artificial Intelligence (AI) to analyse scanner images which has helped in interception of smuggled goods and sealed revenue leakages. Moreover, Wattanga pointed out that simplicity is one of KRA’s Core Values, aimed at eliminating complexities that taxpayers experience.

He announced that the authority has simplified filing of returns through VAT auto-population and adopted mobile and digital payment platforms to streamline tax payments.

In addition, he referred to the introduction of a Centralised Release Office (CRO), which has made cargo clearance at the ports easier and more efficient, subsequently improving cargo clearance time from an expected average of 110 hours to 43 hours and enabled KRA to collect Ksh22.7 billion.

KRA Commissioner General explained that KRA has implemented organisational restructuring within its functional areas of revenue, technology and service to create an agile and responsive tax administration framework, strengthen the digital infrastructure for data-driven decision-making and automation, and to improve taxpayer engagement and support.

“Among these changes include integration of the large and medium taxpayers into a core functional area, and the micro and small taxpayers as another core functional area that provides more personalized support to address taxpayers’ unique needs,” he highlighted.

The functional areas have also supported tax base expansion in alignment with the Medium-Term Revenue Strategy.

He underlined KRA’s initiatives under this strategy include a robust recruitment of non-resident taxpayers and deployment of technology to ensure compliance.

Similarly, the tax base expansion measure aims to on-board taxpayers previously not paying taxes and convert inactive taxpayers into active taxpayers. Wattanga disclosed that the programme enabled KRA to collect Ksh24.9 billion in revenue.

Some of the initiatives under TBE include launch of the Electronic Rental Income Tax System (eRITS) that has provided visibility of rental properties, rental income and occupancy status, recruitment of landlords under the Monthly Rental Income (MRI) programme through a taxpayer mapping process (Block Management System – BMS); recruitment of additional taxpayers and provision of additional tax obligations based on their income.

The other measure of taxation at Source means that KRA has integrated with other systems, allowing for an almost real-time collection of information and revenue directly at the source. Some of the interventions under this strategy include the integration of Betting and Gaming Companies into KRA tax system which has given the latter real-time access to 141 companies in the gaming and betting sector enabling both Excise Tax on betting services and Betting Tax to surpass the financial year 2024/25 target.

On enhancing collection from debt programmes on non-compliant taxpayers, Wattanga asserts that KRA is mobilizing a total of Ksh141.261 billion in financial year 2024/2025 attributing the performance to follow-ups on demand notices and the debt instalment plans agreed upon with taxpayers.

In reference to tax amnesty, the commissioner general revealed that a total of 3,512,835 taxpayers benefitted from the programme after they were granted waiver on penalties and interests amounting to Ksh95.645 billion. Through the programme, KRA collected Ksh29 billion after 116,144 taxpayers voluntarily declared and paid.

Also, in its commitment to efficiency and effectiveness in reduction of cargo clearance times, he mentioned that KRA has enhanced the iCMS capabilities to allow for Pre-Arrival processing of documents using the Bill of Lading as the base document for declaration of Customs entries in order to facilitate trade.

Additionally, KRA has spearheaded the formulation of joint Service Level Agreements (SLAs) for sea clearance cargo with 23 Partner Government Agencies (PGAs). This will improve efficiency in clearance of sea imports and exports by ensuring predictability and accountability,” said Wattanga.

He said tax head has also established three trade facilitation centres along the Northern Corridor – Kainuk, Lodwar and Kakuma, which are dedicated to supporting cargo monitoring and facilitating trade with South Sudan, Ethiopia and Uganda.

Describing the Dispute Resolution Framework, he stated that KRA uses the Alternative Dispute Resolution (ADR) framework as a trade facilitation mechanism by ensuring amicable resolution of tax disputes as opposed to protracted legal processes.

“For the period under review, 970 cases were concluded, enabling release of Ksh15.296 billion. This demonstrates KRA’s commitment to promoting compliance through non-adversarial mechanisms,” reaffirmed the Commissioner General adding that KRA also collected Ksh65.09 billion through litigation processes.

While shedding light on anti-corruption measures, Wattanga says KRA’s interventions to combat corruption and seal revenue leakages include implementation of the iWhistle programme, which facilitated collection of Ksh6.8 billion from 821 cases reported anonymously; profiling of tax evaders and review of refunds and debt management processes.

Internally, the commissioner general discloses, KRA conducts lifestyle audits on staff and runs robust internal awareness campaigns to ensure staff uphold integrity in their work specifying that through the iWhistle, 45 staff integrity cases were reported and action taken.

For the final measure, he referenced customer support programmes which are aimed at building partnerships and increasing engagements to ensure the public fully participates in revenue administration measures. In financial year 2024/25, KRA held a total of 37 engagements with different sectors, nine sensitization, 15 public participation sessions and nine roundtables according to the Commissioner General, insisting that these initiatives have played a key role in equipping individuals and other entities with relevant information on taxation.

On behalf of the KRA Board of Directors and staff, the commissioner general appreciated all Kenyans for remaining committed to honouring their tax obligations, which plays a key role in Kenya’s economic sustainability and development.

As KRA commemorates its Pearl Anniversary this July, the organization celebrates remarkably significant milestones over the last 30 years, growing revenue collection from Ksh122.066 billion in 1995 to more than Ksh2.5 trillion this year.

Meanwhile, KRA remains committed to simplifying tax payment processes and ensuring a positive taxpayer experience.

The tax head also emphasises its unwavering dedication to upholding integrity and professionalism in all interactions with taxpayers.

• A Tell Media / KNA report / By Michael Omondi