President William Ruto has spelt out the daunting tasks for the Kenya Revenue Authority in a bid to raise the country’s revenue collection.
In a statement shared late at night on Friday, November 1, 2024, the Head of State maintained that the taxman must work to increase their collection.
While acknowledging their 10 per cent growth, which added 1.2 million new taxpayers and generated Ksh24.6 billion in revenue for the 2023/2024 financial year, Ruto stated that KRA must reach new heights in revenue collection.
Accountability
Ruto who hosted KRA officials during the Taxpayers’ Day at State House, Nairobi, indicated that they must adopt cutting-edge technology which will help them in executing their mandate.
Despite adopting modern technology, Ruto directed the taxman to build a friendly culture which champions voluntary tax compliance.
“The growth in our tax collection by more than 10 per cent in the last one year is commendable. However, more work lies ahead for our country to realise its optimum revenue level.
“This is why the Kenya Revenue Authority must be accountable, adopt cutting-edge technology to check leakages and build a robust bond with taxpayers to simplify and cause voluntary tax compliance,” Ruto’s statement read in part.
He further promised to push for more support, especially in the emerging sectors to bolster the tax collection targets.
“More support to the dynamic and emerging sectors of the economy such as the digital technology and agriculture will further enhance our tax income to cement our financial autonomy and spur our economic growth,” Ruto’s statement added.
Target
President Ruto outlined plans to improve tax compliance from 70 per cent to 90 per cent by 2026/2027, stating that this goal would help achieve financial sustainability.
“Our aim is to raise revenue from 14 per cent to 22 per cent of GDP within the next decade and to promote compliance from 70 per cent to 90 per cent by 2026-27,” Ruto affirmed.
He acknowledged challenges such as high unemployment and a housing deficit that have hindered socio-economic transformation.
“We must address these challenges collectively to create a more resilient economy,” he noted.
“The partnership between government and taxpayers must be based on a dynamic of reciprocity, with the government using effective policies and efficient public investments to enable taxpayers to thrive and create jobs and wealth,” he added.
The growth in our tax collection by more than 10 per cent in the last one year is commendable. However, more work lies ahead for our country to realise its optimum revenue level.
This is why the Kenya Revenue Authority must be accountable, adopt cutting-edge technology to check… pic.twitter.com/WSFnhE1eK8
— William Samoei Ruto, PhD (@WilliamsRuto) November 1, 2024
