The Kenya Revenue Authority (KRA) has announced the commencement of a strategic reform process aimed at enhancing operational efficiency, optimizing processes, and streamlining administrative procedures.
In a statement on Friday, February 21, KRA said the reform process is anchored on its 9th Corporate Plan, which envisions an agile tax and customs revenue agency that facilitates voluntary compliance for all while becoming a more responsive and customer-centric organization.
“As part of this transformation, KRA is implementing internal realignments within its functional areas of revenue, technology and service,” KRA said.
According to the authority, the move is aimed at creating an agile and responsive tax administration framework and strengthening digital infrastructure for data-driven decision-making and automation.
KRA further explained that it will help in improving taxpayer engagement and support, thereby promoting ease of compliance and enhanced service delivery.
KRA Restructures Taxpayer Categories to Expand Tax Base
Changes resulting from this realignment include the merging of Large and Medium Taxpayers into a one core functional area, while Micro and Small Taxpayers will be grouped into another core functional area.
Large and Medium Taxpayers are individuals or businesses that earn significant income or generate a large amount of revenue.
In Kenya, large taxpayers often include big corporations, large businesses, and high-income individuals, while medium taxpayers could be medium-sized companies.
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Micro and Small Taxpayers refers to individuals or businesses with smaller incomes or revenue.
Micro taxpayers are usually very small businesses, often ran by a single person or a few people, while small taxpayers could be small businesses that are growing but still have relatively low earnings.
With this change and through the relationship management framework, taxpayers can expect more personalized support and attention to their unique compliance needs.
“These functional areas will also augment our endeavour of growing the tax base in alignment with the ambitions of the Medium-Term Revenue Strategy and KRA’s 9th Corporate Plan,” KRA said.
Introduction of New Technology Department
At the same time, the authority stated that its ambition to become a data-driven revenue administrator will now be functionally realized through the introduction of a technology-focused department: the Business Strategy, Technology, and Enterprise Modernization Department.
It further noted that the twinning of technology and reviewed segmentation will provide them an opportunity to serve taxpayers in a more efficient and seamless manner.
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Additionally, the revenue authority sated that the internal alignment will further focus on enhancing workflow processes to reduce redundancies, optimize internal resources and leverage advanced analytics and automation for effective delivery of KRA’s mandate.
“This transformation underscores our commitment to facilitate tax compliance through efficient administration, technology-driven solutions and service excellence,” the commission noted.
“KRA remains committed to ensure a smooth transition during this period and reassures the public that service delivery will continue uninterrupted.”
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