The Kenya Revenue Authority (KRA) has intensified its efforts to improve tax compliance among micro and small enterprises through increased taxpayer engagement and education.
On Thursday, March 5, KRA held a forum in Kisumu County to sensitize small traders on the importance of tax compliance.
The Kisumu forum brought together traders, entrepreneurs, and other stakeholders to discuss tax compliance challenges and explore ways of strengthening collaboration between KRA and taxpayers.
The move comes as the authority seeks to expand Kenya’s tax base and ensure more businesses and individuals meet their tax obligations.
According to KRA’s Commissioner for Micro and Small Taxpayers, George Obell, the authority’s role goes beyond revenue collection to include educating citizens on taxation and their obligations, as well as putting in place simplified tax systems to enhance compliance and improve service delivery.
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Alarm as Only 7 Million of 22 million Pay Taxes
Speaking during the taxpayer engagement forum in Kisumu County, George Obell, noted that out of more than 22 million registered taxpayers, only about 7 million pay some form of tax. Of these, approximately 3.2 million are formally employed and remit Pay As You Earn (PAYE).
The commissioner stated that the imbalance undermines equity in the tax system and that the gap is driven by limited knowledge about tax obligations.
In strengthening its partnership with taxpayers, KRA will engage them within their business ecosystems, including markets, to provide education on their tax obligations and work with them to address challenges affecting compliance.
During the Kisumu forum, Obell also highlighted the economic potential of the Western Region, which he said has the second-largest tax base in the country after Nairobi.
According to the commissioner, the region has more than three million registered taxpayers and an estimated tax potential of over Ksh 2 trillion.
However, he observed that only a small proportion of these taxpayers currently remit taxes.
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KRA Expands Education and Compliance Support
The commissioner also addressed concerns raised by traders about tax systems and compliance requirements, confirming that KRA has put in place measures to address issues to enhance compliance
This includes the introduction of tax expert agents across the country to handle tax enquiries.
“The authority is planning to introduce tax expert agents across the country to handle tax inquiries at the grassroots level under an initiative called ‘Huduma Popote,” said Obell.
Obell assured that eTIMS is not a new tax, but a solution aimed at improving compliance and helping businesses maintain records.
KRA will continue to hold public engagements to help businesses understand their obligations.
“We continue to prioritize taxpayer education through public engagement as a key measure to help businesses understand their obligations and comply with ease,” added Obell.
For enquiries concerning Tax compliance, the commissioner stated that its offices all over the country are open to provide support in meeting tax obligations
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