CS Mbadi Calls for Technological Innovation to Boost Revenue Collection
Cabinet Secretary for the National Treasury and Economic Planning, Hon. John Mbadi, has called for the Kenya Revenue Authority (KRA) to embrace advanced technological strategies to enhance revenue collection. During a meeting with KRA’s senior leadership and staff, CS Mbadi underscored the importance of continuous modernization in tax administration to streamline processes, leverage cutting-edge systems, and simplify tax transactions.
“Our modernization journey must align with our objectives and those of taxpayers,” CS Mbadi said. “This approach will not only benefit taxpayers but also significantly boost our revenue mobilization efforts.”
He emphasized that technology is pivotal in transforming taxpayer services, improving operational efficiency, and enhancing revenue collection. “Our commitment to this cause is evident in our national strategic policy reforms and the ongoing modernization of revenue administration processes,” he added.
CS Mbadi urged KRA to expand the tax base, particularly in sectors that have traditionally been challenging to tax. This, he explained, would help prevent excessive taxation on existing businesses. He also highlighted that the National Treasury will support KRA by developing policies to guide revenue mobilization. Instruments such as the National Tax Policy will play a critical role in expanding the tax base, enhancing fairness and equity in the tax system, and providing certainty and predictability in tax rates and bases.
“Through the Policy, the KRA must ensure that we achieve higher tax compliance, enhance taxpayer experience, and reduce tax expenditure to minimize market distortions and tax refund pressures,” said CS Mbadi. He outlined that the Policy would include a framework for granting time-bound, growth-oriented tax incentives.
CS Mbadi further noted that short-term policies, such as the Medium-Term Revenue Strategy (MTRS), could enable KRA to effectively meet its revenue targets. “I will chair the meeting of the Steering Committee on the Implementation of the Medium-Term Revenue Strategy during the fiscal year to ensure we remain on track. The objective is to achieve a tax-to-GDP ratio of 20 percent over the medium term,” he added.
During the meeting, KRA Commissioner General Humphrey Wattanga revealed that the Authority plans to overhaul its IT infrastructure to establish reliable systems capable of meeting business demands. He stressed that modernization is crucial for improving operational efficiency and enhancing KRA’s capability to identify and address potential tax evasion through data-driven decision-making.
“The adoption of cutting-edge technologies, such as data science, machine learning, and Artificial Intelligence (AI), will strengthen our operational efficiency, ensure compliance, and elevate service delivery standards,” Commissioner General Wattanga said. He noted that these technological advancements would not only simplify tax administration but also boost overall revenue performance and create a seamless experience for taxpayers.
Commissioner General Wattanga affirmed that KRA will continue to implement effective initiatives and robust policy reforms to fulfill its mandate of collecting revenue on behalf of the government.
