Kenya, US join forces to enhance digital taxation

US Ambassador to Kenya Meg Whitman with KRA Commissioner General Humphrey Wattanga (right) during a visit to Times Tower, Nairobi. [Boniface Okendo, Standard]

Kenya and the United States have partnered to drive digital innovation in taxation and enhance efficiency in tax administration through the use of digital technologies.

The Kenya Revenue Authority (KRA) and the US Embassy in Kenya have teamed up to reevaluate taxation methods, which they say will boost efficiency and effectiveness for both countries.

"In an era characterized by remarkable technological advancements, it has become apparent that taxation systems can benefit from digitalization," KRA Director-General Humprey Wattanga said on Monday, October 30 in Nairobi.

US Ambassador to Kenya, Meg Whitman who witnessed the collaboration averred that its outcomes will benefit both countries in improving their financial landscapes and riding off old tax systems.

"As both nations embark on the journey of exploring innovative solutions, sharing knowledge, and participating in strategic dialogues, the outcomes are likely to influence not only the financial landscapes of Kenya and the United States but also serve as a reference for other countries seeking to modernize their tax systems."

The theme of the partnership between the Authority and the US is "Drive Transformation in Taxation Through Digital Technologies."

Seeing as digitalization forms one of Kenya Kwanza's agendas, it is hoped that the collaboration will help change the future of taxation in Kenya.

The move comes as KRA steps up efforts to curb tax evasion, amid increasing pressure to generate additional tax revenue.