The Kenya Revenue Authority (KRA) is ramping up efforts to crack down on tax evasion through tighter compliance measures and digital reforms aimed at creating a fairer business environment.
KRA and the Kenya Private Sector Alliance (KEPSA) met to talk about the changes. The tax authority explained how they plan to increase the number of people who pay taxes, make it easier for businesses to follow the rules, and improve the way taxes are administered.
The push comes because the government wants to get more money by taxing more businesses instead of taxing people who already pay their taxes more.
Adan Mohammed, Commissioner General of the KRA, said that all businesses should be able to compete under the same tax rules. He said that tax evasion gives companies that don’t follow the rules an unfair advantage.
“Our commitment is to ensure that every business competes fairly and every taxpayer meets their obligations,” he said.
Mohammed said businesses that pay their taxes are often disadvantaged when competitors avoid their obligations, making it harder for compliant firms to compete on equal terms.
As part of the reforms, KRA is integrating the Integrated Customs Management System (iCMS) with the iTax platform.
The integration will automate the verification of import and export transactions, reduce manual intervention, and strengthen compliance monitoring.
The authority is also working to cut the processing time for eligible Value Added Tax (VAT) refunds from several weeks to less than 10 minutes.
Faster refunds are expected to improve cash flow for businesses that rely on timely tax reimbursements.
KRA is also reviewing its tax administration processes following concerns from the private sector over delays in VAT refunds and inconsistencies in the classification of raw materials and intermediate goods.
Businesses say the issues have increased costs and created an uneven competitive environment in some industries.
According to Mohammed, expanding the tax base offers a more sustainable way of increasing government revenue than relying on the same pool of compliant taxpayers.
KEPSA, meanwhile, called for quicker resolution of tax disputes through wider use of Alternative Dispute Resolution (ADR) mechanisms.
The business lobby said reducing the average resolution period from 120 days to about 90 days would help free up capital and give businesses greater certainty when planning investments.
