The Kenya Revenue Authority (KRA) has pledged to support large taxpayers to comply with paying their taxes.
According to the taxman, this move will help to raise a revenue of Kshs1.1 billion, a target up from Ksh 818.0 billion for the financial year 2022/23.
“KRA has pledged to streamline its processes to make them more straightforward for large taxpayers to uphold compliance,” a public press release released by the revenue authority on 24th October stated.
Additionally, the authority has set up a Large Taxpayers’ Office to address the needs of this category of taxpayers.
Currently, Kenya has 2,089 large taxpayers.
Large taxpayers, according to the taxman, are taxpayers that accrue an annual income of up to Kshs 1.3 billion.
Speaking during an engagement with large taxpayers held at Ole Sereni Hotel, Nairobi, KRA Commissioner General Humphrey Wattanga said that in the financial year 2022/23, large taxpayers contributed Ksh. 818 billion in revenue.
Notably, this represents a remarkable 9% growth from the previous financial year 2022/2023.
Move by KRA to Ensure Compliance
Further, Wattanga stated that the tax collector has developed a Relationship Management Framework that will help facilitate the taxpayers to enhance their contribution.
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“At KRA, our commitment is not only to collect taxes but also to support you in upholding compliance, while efficiently contributing to our nation’s economic agenda,” he said.
“To facilitate this, we have established a dedicated office for our large taxpayers known as the ‘Large Taxpayers Office’ (LTO), which will continue to engage and partner with you through a Relationship Management Framework,” he added.
Wattanga said the framework has allowed KRA to identify, manage and nurture exceptional relationships with taxpayers, adding that it has paved the way for more personalized and relevant services.
This he said has allowed KRA to address taxpayers’ concerns and effectively enhanced revenue compliance.
Revenue Targets
KRA target to collect Kshs 2.768 trillion from taxpayers by the end of Financial Year 2023/2024.
Further, the revenue authority envisions surpassing the Kshs 3 trillion mark by Financial Year 2024/2025.
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Impressively, KRA has maintained an upward trajectory in revenue collection, after recording a 6.7% growth in the financial year 2022/2023.
Notably, revenue collection has progressively increased in the last 5 years from Kshs. 1.58 trillion in FY2018/2019 to Kshs. 2.166 trillion in FY2022/23.
This represents a growth of 37% ( Kshs 586.259 billion) in the last five years.
