Kenya should speed up tax reforms

A World Bank report that found Kenya’s tax system is the most complex in the East African region is worrying. Available data indicate that it takes more than 400 hours for firms to do all the paperwork, including compiling data, calculating, payment and meeting all other tax requirements

This is poor compared to Burundi, Rwanda, Uganda and Tanzania where compliance time is shorter. Considering the world average is 286 hours, Kenya’s tax system is one of the most cumbersome, rendering it an uncompetitive destination for investment and business. While Kenya Revenue Authority (KRA) is pushing forward with reforms, speed is of essence, as the East African Common Market Protocol becomes a reality. If a sense of urgency is not injected into KRA’s reform agenda, Kenya risks becoming less attractive as labour, capital and services move across the five East African states.