COMMUNIQUE ON ENGAGEMENT BETWEEN BOARDS OF KENYA REVENUE AUTHORITY (KRA) AND KENYA PRIVATE SECTOR ALLIANCE (KEPSA)

PRESS RELEASE 12/04/2019

Kenya closes in on the top 50 ranking in the ease of doing business after targeting reforms in ease of paying taxes and trading across border indicators.

 

Kenya has made notable progress in two strategic areas; payment of taxes and cross border trade.

 

At a meeting held recently between the Boards of the Kenya Revenue Authority (KRA) and Kenya Private Sector Alliance (KEPSA) KRA outlined that several measures been put in place to propel the country’s ranking to top 50.

 

Key among the initiatives is the proposed integration of KRA, National Social Security Fund (NSSF) and National Hospital Insurance Fund (NHIF) payments systems.

 

Already, key milestones have been achieved in the unification of NSSF’s online payment system (SSPAS) and KRA’s iTax, with KRA having reported that full rollout of the integration will be realized by December 2019, hence reducing the number of payments by 12.

 

Roll out of the proposed Tax Invoice Management System (TIMS); an enhancement of the current Electronic Tax Receipt (ETR) regime, which will enable automatic, reporting of tax invoice transactions, is expected to further ease payment of taxes and VAT refund processes. The recently installed Integrated Cargo Management System (ICMS) has also greatly enhanced efficiency in non-intrusive verification and intelligence based risk profiling to establish which goods to undergo physical verification.

 

Chairman of the KRA Board Amb. Francis K. Muthaura welcomed the partnership with the private sector and acknowledged the need to harmonize efforts and open up dialogue channels for the mutual benefit of the Government and the private sector. He accentuated the need for a concerted effort in facilitating a conducive business environment and enhancing revenue collection through voluntary compliance.

 

On his part KEPSA’s Chairman, Nick Nesbitt appreciated the initiatives KRA had undertaken to continuously engage the private sector and its transformation to a more approachable and friendly organization. “It is imperative that businesses can now work together with the revenue authority”, remarked Mr. Nesbitt.

 

The CEO of KEPSA Ms. Carole Kariuki acknowledged the achievements the Authority has undertaken and implemented in supporting the private sector specifically, the rollout of the Electronic Cargo Tracking System (RECTS) to track cargo in transit and eliminate diversion and other illicit trade activities, implementation of the Authorized Economic Operator (AEO) programme to facilitate faster cargo clearance, embedding innovation and technology in tax administration such as iTax, VAT auto assessment (VAA) system and the proposed TIMS.

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