Kenya Revenue Authority (KRA) Company Profile

Background

The Kenya Revenue Authority (KRA) was established on July 1, 1995, by an Act of Parliament, Chapter 469 of the laws of Kenya. As the principal tax collection agency for the Government of Kenya, KRA's mission is to enhance the mobilization of government revenue and facilitate economic growth by ensuring compliance with tax and customs laws. Its vision is to be a globally trusted revenue agency facilitating tax and customs compliance.

Key Strategic Focus

KRA's strategic objectives include:

Revenue Collection: Assessing, collecting, and accounting for all revenues in accordance with the law.

Trade Facilitation: Promoting international trade by creating an enabling environment for businesses.

Border Control: Managing and controlling the import and export of goods through Kenya’s borders to ensure compliance with trade regulations.

Financials and Funding

In the financial year 2022/2023, KRA collected KShs. 2.166 trillion, marking a 6.7% increase from the previous year. This growth is attributed to strategies such as customer support programs, tax base expansion, taxation of the digital economy, and leveraging technology.

Technological Platform and Innovation

KRA has implemented several technological initiatives to enhance tax compliance and service delivery:

iTax System: An online platform allowing taxpayers to register, file returns, and make payments electronically.

Electronic Tax Invoice Management System (eTIMS): A system that minimizes VAT fraud and increases tax revenue.

Integration with Betting and Gaming Companies: Real-time access to transactions in the gaming and betting sector to streamline tax remittance.

Leadership Team

Chairperson of the Board of Directors: Ndiritu Muriithi

Commissioner General: Humphrey W. Mulongo

Organizational Structure

KRA is divided into several departments, each headed by a Commissioner:

1. Customs & Border Control Department (C&BC)
2. Domestic Taxes Department (DTD)
3. Intelligence & Strategic Operations Department (I&SO)
4. Investigations & Enforcement Department (I&E)
5. Strategy, Innovation & Risk Management Department (SIRM)
6. Corporate Support Services Department (CSS)
7. Legal Services & Board Coordination Department (LS&BC)

Competitor Profile

Market Insights and Dynamics

KRA operates within Kenya's taxation system, which includes income tax, value-added tax (VAT), and corporate tax. The standard VAT rate is 16%, and the corporate tax rate is 30%.

Competitor Analysis

While KRA is the primary tax collection agency in Kenya, it collaborates with various stakeholders, including:

National Treasury: Oversees fiscal policy and budgetary allocations.

Kenya Trade Network Agency (KenTrade): Facilitates trade by simplifying and harmonizing trade processes.

Kenya Bureau of Standards (KEBS): Ensures compliance with product standards and regulations.

Strategic Collaborations and Partnerships

KRA has partnered with multiple commercial banks to facilitate tax collection. For instance, in 2015, Citi Bank collected KES 158 billion ($1.55 billion) in taxes on behalf of KRA, representing over 15% of all taxes collected that year.

Operational Insights

KRA has implemented various initiatives to enhance tax compliance, including:

Taxpayer Education and Assistance: Providing education and assistance to help taxpayers understand their obligations.

Enforcement of Tax Laws: Ensuring compliance and preventing tax evasion through enforcement measures.

Administration of Tax Incentives: Managing tax incentives to promote investment and economic growth.

Strategic Opportunities and Future Directions

KRA aims to continue enhancing revenue mobilization by broadening the taxpayer base, leveraging technology, and improving customer service. The authority is committed to upholding integrity and professionalism in serving taxpayers and making tax compliance a pleasant experience.