KRA helping MSMEs uphold tax compliance through digitisation

CaptionIncome tax return deduction refund concept. [Courtesy/rawpixel.com]

Micro, Small and Medium Enterprises (MSMEs) are the heartbeat of Kenya's economy. Their entrepreneurial spirit drives job creation, innovation and inclusive growth. But despite their significant position in the economy, their overall tax contribution remains below potential.

At a recent African Development Bank Value-added tax Digitisation Seminar held in Nairobi, experts acknowledged that many MSMEs face unique challenges in meeting their tax obligations, ranging from limited resources to complex administrative processes. To support MSMEs to thrive while contributing fairly to national development, the experts emphasised that tax administrations must rethink their role, not merely as regulators, but as enablers of compliance.