KRA 2015-2018 corporate strategic plan

The taxman targets to collect Sh5.2 trillion over the next three years through a new Corporate Strategic plan. The plan to run from 2015 to 2018 will be based on technology to have all taxpayers on board in a national database.

Kenya Revenue Authority Commissioner General John Njiraini during the media breakfast meeting on iTax campaign at Hotel Intercontinental on 29th April, 2015. PHOTO: GOVEDI ASUTSA/STANDARD.

It will also provide a framework for further transformation at the Kenya Revenue Authority as it seeks to facilitate Kenya’s Ease of Doing Business ranking scores among other critical elements. National Treasury Cabinet Secretary Henry Rotich said Kenya has the potential to fund its budget from the tax collected.

“We have to find a way to get everyone on board to realise this target and adoption of technology is a good way to implement this. That is why we have gone further in streamlining the real estate sector in their rental income as well as having tax for particular roads,” said Mr Rotich during the launch of the plan on Friday.

He said the newly implemented Single Customs Territory Unit (SCT) has been key by reducing the time taken by neighboring countries to transit their goods. “This has further broadened our tax base with over two million taxpayers successfully migrating to itax.”

He added that the growing Kenyan economy presents the need for innovative framework that would enhance modernisation of KRA services. “This involves all stakeholders from the Central Bank of Kenya, to the government and all relevant authorities. This will assist in curbing the loopholes in tax collection that has made the country lose billions in revenue.” Kenya is said to be losing Sh160 billion annually through illicit financial flows mainly facilitated with tax related irregularities. Most of these are through transfer pricing by multinational corporations and handing out tax incentives.

KRA Commissioner General John Njiraini (pictured) said the government is coming up with a global initiative on tax information that will manage this challenge. “It will involve tax authorities in the country being able to exchange information with their counterparts from other countries. This will enable tracking of tax evaders. Already 120 countries have signed up,” said Mr Njiraini.

Njiraini said the government will come up with regulations to cap tax amnesties given by many corporates and governments to defaulters. “This is one way in which we lose a lot of revenue. Many times these amnesties do not meet the intended agenda.”