What KRA needs to do before leveraging on digital intelligence to weed out tax evaders

The Kenya Revenue Authority (KRA) has announced the establishment of an advanced forensic laboratory that will provide the authority the capability to access financial data from taxpayers’ computers and mobile phones, in a bid to detect tax evasion and to reduce financial fraud.  The Kenyan

Tax Talk Series webinar: A look at post Budget effect on taxes

The Tax Talk Series hosted by the Kenya Revenue Authority held a webinar on April 8, 2022, to discuss the post budget effects on taxes. The session which lasted for close to an hour was moderated by Nixon Omondi – Manager, Digital Economy, Tax Office.

Taxman’s eye on social media posts good for enhanced compliance

By Brian Kuira Recent media reports that the Kenya Revenue Authority (KRA) would train its eyes on taxpayers who display luxurious lifestyles on social media but under-declare their income sparked a heated debate among Kenyans.  A section of Kenyans termed the move a misplaced priority.

KRA records excellent performance, Exceeds target in first half of FY 2021/22

The Kenya Revenue Authority (KRA) has recorded an above-target revenue performance in the first half of the Financial Year 2021/2022 after collecting KShs. 976.659 billion against a target of KShs. 929.127 billion thanks to higher tax compliance. Patriotic taxpayers keen on facilitating national development allowed

Key tax changes to look out for in 2022

On January 1, 2022, several key tax amendments contained in the Finance Act, 2021 (the Act) took effect. We take a look at these changes and the likely impact on taxpayers. Requirement for multinational enterprises to file returns on activities in other jurisdictions An ultimate

The State applauds KRA’s revenue mobilisation efforts with a record number of Awards and Honours

The Kenya Revenue Authority (KRA) has welcomed the highest number of decorations ever accorded to its staff members; by the State at the recent 58th Jamhuri Day Celebrations. In recognition of the Tax Administration Authority’s exemplary performance in revenue mobilisation, KRA officers received a total of

15th October 2021 Political and Regulatory Round Up

KRA ASSURES ON THE INCLUSIVE FRAMEWORK ON BASE EROSION AND PROFIT SHIFTING The Kenya Revenue Authority (KRA) has allayed fears on the possible loss of revenue from multinational technology firms following the signing of an international Inclusive Framework to reform international tax rules. The fears

Taxation in Sports

Kenya was the leading performer in Africa in the recently concluded 2021 Tokyo Olympic games having won four golds, four silvers and two bronze that further jolted the country to 19th on the global medal standings. As the Olympic games came to a close, an

Key Strategies in the Transformation of Kenya’s Tax Administration

Dr Mohamed Omar – KRA Commissioner – Strategy, Innovation and Risk Management Tax systems go through changes over time, as economies and societies equally evolve. Tax administration in Kenya has been going through reforms, most notably over the last ten years when the intentional use

More than 5.5 million taxpayers file returns as filing period closes

More than 5.5 million taxpayers filed their tax returns for the year 2020 as the filing period officially closed at midnight on Wednesday 30th June 2021. This means that 1.1 million more taxpayers turned out to file their returns this year compared to the 4.4

Unfavourable tax policies that continue to constrain the growth of the sorghum value chain

The story of sorghum based beer in Kenya illustrates the importance of government policy for the development of smallholder value chains. This has been evidenced by the changes in tax policy for sorghum based beer which in the recent past has been quite successful owing

File your Annual Tax Return to avoid penalties for Non-compliance

By Rispah Simiyu  Worldwide, a good tax compliance score is a fundamental aspect for the smooth running of any business or any profession. Contrary to popular belief, tax compliance is not entirely defined by payment of taxes only. Filing of tax returns is equally an

The Kenya Revenue Authority launched the 8th Corporate Plan 2021/2022 – 2023/2024

This Plan is the eighth in the life cycle of the Authority and runs under the Theme: Revenue Mobilization through tax simplification, technology-driven compliance and Tax Base expansion. In this Plan, the Vision remains to be ‘A globally trusted revenue agency facilitating tax and customs

Finance Bill, 2021

TAX AMENDMENTS HIGHLIGHTS Introduction: The Finance Bill, 2021 was published on 05th May 2021. The reason for publishing the Bill early, as was the case in 2020, was to comply with the ruling by Justice Winfrida Okwany referencing Petition Number 253 of 2018 where the

A ruling against Minimum taxes

Earlier this week, the High Court of Kenya vide a ruling in the Constitutional Petition No. E005 of 2021, a case of Stanley Waweru & 3 others (the Petitioners) V National Assembly, the Commissioner General, Kenya Revenue Authority and the Attorney General (the Respondents), paused

KRA appoints two Commissioners to enhance leadership capacity

The Kenya Revenue Authority (KRA) has announced two substantive Commissioners’ appointment as part of an ongoing leadership capacity enhancement programme. KRA’s Commissioner General Githii Mburu CBS, in a media communiqué, confirmed that the Board has appointed Ms. Lilian Anyango Nyawanda as Commissioner of Customs and

ICT sector priorities: Conversation between Senate and Industry

The Senate Standing Committee on Information, Communication and Technology held a meeting this week with the Kenya Private Sector Alliance and the Kenya ICT Action Network to deliberate on emerging legislative and policy gaps in the ICT Sector. Key Challenges The presentation from the Sector

Minimum tax is an idea worth pursuing

Taxing businesses on profits as
it has always been means
that loss making entities
comfortably escape the
taxman’s noose. Bear
in mind that the onus of
determining profits or losses
rests on the taxpayer.

Part 6: Sports and Entertainment Services

Kenya’s latest form of
taxation is the Digital Service
Tax (DST) which came into force
on 1st January 2021. It imposes a
1.5% tax on the gross transaction
value of services provided on
digital platforms operating within
the “digital-market place” which
has been defined in the VAT Act
as “a platform that enables the
direct interaction between buyers
and sellers of goods and services
through electronic means”.

2021 ushering in tax changes

Kenya has greatly been affected by the outbreak of Covid-19 that was subsequently declared a global Pandemic. Businesses had to minimize their activities due to the Pandemic. This led to job cuts, unpaid leave and redundancies as profitable entities moved into losses. Millions of Kenyans

Kenya on course to implement global tax exchange of information protocols by 2022

SPECIAL FEATURE: The Kenya Government has reiterated its commitment in implementing international standards on transparency and exchange of information for tax purposes as part of a national effort to curb tax evasion and illicit financial flows. Speaking at the OECD Global Forum on Transparency and

Government set to roll back COVID tax relief measures in January 2021

Per statistics by the World Bank, Kenya is set for a relatively short setback from COVID-19 with a s 4 percentage-point dip in growth this year, and 5.2 percent growth returning in 2021. This is still a permanent loss of 5 percent of GDP over

Highlights of Virtual 2020 Taxpayers Day- 6th November 2020

The main objective of the occasion was to recognize taxpayers from various sectors of the economy for their contribution towards nation-building. This year’s celebration is anchored on the theme; “Enhancing Tax Administration for Economic Sustainability’’ similar to the Tax Summit. During the meeting, the Commissioner

Highlights of Kenya Revenue Authority 6th Annual Tax Summit

The 6th Annual Tax Summit that took place on the 4th and 5th of November, 2020, sought to advance conversations based on the four strategic goals that guide its 7th Strategic Plan by driving public and international participation in discussions geared towards providing solutions for enhancing

Combating Tax Evasion: Intelligence-driven approaches

The commendable progress made so far can only mean one thing: the days for tax
evasion perpetrators are continually diminishing. Through such collaborations, the
country is now better equipped to emancipate tax revenues trapped in the intricate
web of tax evasion schemes.

KEPSA/ KRA 6th Annual Tax Roundtable

National Treasury has accepted to increase the monthly
VAT refunds allocation from Ksh. 1.2 Billion to Ksh. 1.7
Billion. This has greatly contributed to the liquidity and
availability of capital which has been instrumental in
the continuity of business operations.

Excellent service delivery is key to KRA’s successful delivery of mandate

CRM is a state-of-the-art system which has revolutionised how KRA engages with taxpayers virtually. Diversification of the virtual customer assistance platforms is informed by the need to take care of the equally diversified base of taxpayer

Inflation adjustment on specific rates of excise duty

The Kenya Revenue Authority published a notice informing manufacturers and importers of excisable goods and members of the public that the Commissioner General will adjust the rates of excise duty using the average inflation rate for the financial year 2019/2020, as determined by the Kenya

Minimum Tax: Leveling playground for businesses and sealing revenue loopholes

By Stephen Kyande
Kenya is one of the jurisdictions in the world that operate a self-assessment tax administration
regime. Primarily, this kind of regime is purely based on trust where the taxman trusts that the
declarations of income made by taxpayers are a true reflection of the income generated. At a
secondary level, the taxman may issue an assessment as well as other remedial measures
stipulated in the law in case there is suspicion of under-declaration of income by a given
taxpayer.

Voluntary Tax disclosure programme: Opportunity for clean bill for tax payers

By Stephen Kyande High tax compliance levels are the backbone of enhanced revenue mobilisation and collection in any jurisdiction. As such, tax administrators employ varied strategies in order achieve high compliance levels. One such strategy is provision of tax amnesty windows. Under tax amnesties, taxmen

Why more taxpayers are opting for ADR in resolving tax disputes

In a quiet revolution against the traditional practice of enforcement, taxmen globally are now showing serious interest in finding ways to solve business disputes without going to trial. Kenya Revenue Authority (KRA) has not been left behind in this revolution and is indeed among the

KRA Finance Act 2020 Stakeholder Awareness

The Kenya Revenue Authority held a Stakeholder Engagement on Thursday, August 13, 2020 to create awareness of the provisions of the Finance Act 2020.

A walk through if the Income Tax (Digital Services Tax) Draft Regulations, 2020.

A digital marketplace was defined in the Finance Act of 2019 as a platform that enables the direct interaction between buyers and sellers of goods and services through electronic means. This definition covers all types of marketplaces however the challenge is that in some instances despite buyers and sellers meeting through a particular platform no value is transferred for goods and services through the platform an example here is a Facebook page or group where buyers and sellers meet but payments are made through private arrangements. However, Facebook would be liable to pay digital services tax for advertising revenue it generates or if payments for goods and services were made within the platform.