KRA to help counties in revenue collection

The Kenya Revenue Authority (KRA) is entering into a partnership with counties to integrate their revenue collection systems with iTax. At the same time, KRA will be working with counties to strengthen compliance in the remission of property rates.

Commission on Revenue Allocation (CRA) Chairman Micah Cheserem said property rates remain the greatest challenge in county revenue collection. He noted that it is sad that most counties issue biannual amnesties to property owners to encourage them to comply with the law.

“KRA has been talking about transforming into the Kenya revenue service. Part of this transformation should be collaboration with county governments. KRA’s mandate is not only to serve the national government but to also enable counties meet their own revenue targets,” Mr Cheserem said. He was speaking during the 2nd Annual Tax Summit.

The CRA boss added that county revenues have grown to over Sh35 billion annually, but still the same devolved units depend on a share of national government revenue to meet their expenditure.

KRA Commissioner for domestic taxes Benson Korongo said once the itax system is integrated with the county systems, the move will not only boost revenue collection, but will also be helpful to taxpayers.