KRA staff, agents to wear body cameras to arrest corruption

KRA Commissioner General James Mburu during the annual taxpayers' day. [Courtesy KRA]

The taxman has started the process of compelling thousands of its agents and officers to wear body cameras at their workstations.

The move is aimed at increasing oversight of Kenya Revenue Authority's (KRA) agents, thereby curbing potential criminal activities such as tax evasion and bribery.

KRA has invited technology firms and vendors to bid for a tender to supply the body cameras by the end of this month.

The tax agency will hold a virtual meeting with the vendors on Tuesday next week, according to internal documents seen by Standard Business.

The taxman reckons the move will help curb tax cheating and staff bribery.

Body-worn cameras are recording devices mostly worn by police officers and other law enforcement officers on their uniforms to document what they see as they perform their duties.

It comes at a time when the taxman is under pressure to seal revenue leaks and boost State coffers to reduce reliance on public debt.

KRA is expected to tighten the noose on taxpayers after President William Ruto set a target to double tax collections by the end of his first term in 2027.

He recently gave KRA a target of Sh3 trillion by the end of the next financial year and to double it by 2027, noting that tax collection is currently below par.

KRA collected Sh2.03 trillion in the financial year to June 2022. The directive to increase revenue collection came even as the President and his deputy Rigathi Gachagua called out KRA for what they said was the harsh treatment of taxpayers.

President Ruto urged KRA to quit being "too combative" in tax administration and instead work with taxpayers in improving compliance.

Among the low-hanging fruits that remain unexploited, the president noted, include the taxation of wealthy Kenyans, whom he said are undertaxed.

He also directed KRA to seal revenue leaks and evaluate ways to expand the tax base while approaching the taxpayer in a non-confrontational but firm manner to increase tax collection in line with his new targets.

"I expect KRA to raise Sh3 trillion by the end of the next financial year and to double the current collection in five years," said President Ruto.

He said his administration would ensure all taxpayers pay their fair share of taxes to avoid overburdening a segment of the population.

"KRA must also reflect equity by shifting from the overtaxing of trade and undertaxing of wealth to enable the wealthy to bear an appropriate burden. As I have said before, our operating philosophy in matters of revenue mobilisation is going to be hierarchical. This means that we shall tax wealth, consumption, income and trade in that strict order."

KRA surpassed its revenue collection targets for the second year in a row during the financial year to June 2022. The authority collected Sh2.03 trillion during the year against a target of Sh1.976 trillion set by the National Treasury.

The taxman said the higher collections were against improved compliance from taxpayers.

President Ruto, however, said while KRA has made major gains and met revenue collection targets, it is underperforming compared with the past, where tax collection at some point accounted for 18 per cent of gross domestic product (GDP).

This is unlike the scenario today where tax collection accounts for 12 per cent.

"In the past, revenue collection registered a dramatic growth. This was a result of an effective national mobilisation strategy, which appealed to our fundamental values and identity and employed citizen education, engagement and facilitation," he said.