KRA collects Sh3.4 billion from tax amnesty drive

Kenya Revenue Authority (KRA) has so far collected Sh3.4 billion from the ongoing tax amnesty programme.

In a statement on Monday, KRA's Domestic Taxes Chief Manager Caroline Rotich said they anticipate to collect more than Sh51 billion by the end of June 2024.

The programme allows taxpayers to only pay the principal tax of their outstanding debt by applying for a waiver of penalties and interests accrued until December 2022.

Ms Rotich revealed more than 17,000 taxpayers have applied for the amnesty and are expected to remit about Sh10.5 billion.

“More than 17,000 taxpayers have applied for the tax amnesty which commenced on September 1, 2023, and we expect the number to immensely grow as we continue to create awareness amongst taxpayers,” she said.

KRA has also identified 2.8 million taxpayers who have penalties and interest and qualify for the tax amnesty programme.

The 2.8 million are automatically entitled to a waiver and will not be required to make an amnesty application.

The programme which commenced on September 1 will continue till June 30, 2024, allowing Kenyans even those with disputes in court to apply for the tax amnesty.

Meanwhile, the taxman has committed to collaborate with the Eastleigh Business District Association (EBDA) in a bid to bolster tax outreach and awareness initiatives for enhanced compliance and revenue mobilization.

Speaking during a leadership round table with EBDA, KRA Commissioner General Humphrey Wattanga said they are committed to enhance trade facilitation and simplification of tax payment for national prosperity and enhanced compliance.

 KRA commissioner General Humphrey Wattanga with Eastleigh Business District Association chairman Ahmed Abdullahi in Nairobi on Tuesday. [Edward Kiplimo, Standard]

Mr Wattanga explained that through this collaboration, KRA would tailor its engagement and tax outreach framework to respond to the unique needs of the Eastleigh business community and thereby drive compliance.

EBDA Chairman Ahmed Abdullahi welcomed the move by KRA saying that regular engagements had greatly improved the perception of the taxman among the business community.

“Our people are willing to work with KRA and contribute their share of taxes towards the Sh3 trillion mark, and even exceed it. Tax must be paid; tax evasion is criminal and whoever evades must face the full force of the law,” he said.

Mr Abdullahi assured that the business community shares Kenya’s industrialization vision, saying that it was time to invest and focus on production through industries, as this would yield more revenue for the government.

KRA thanked the EBDA leadership for donating office space for the Tax Service Office which has led to improved customer relations and engagements, and for their support for KRA compliance support services enabled by the Revenue Service Assistants (RSAs).

The KRA Commissioner General is committed to ensuring better tax practices through advocacy for the enactment of business-enabling legislation and tax harmonisation within the East African Community to ensure fair and competitive business practices.

He promised to deepen the collaboration to strengthen tax compliance.

Wattanga is committed to supporting and facilitating all taxpayers to pay their correct share of taxes and comply with tax obligations.