KRA's Response To Wandayi Calling For Audit Amidst Salary Crisis

The Kenya Revenue Authority (KRA) on Monday, April 10 issued a clarification to various reports regarding its operations, and in particular revenue mobilization.

In a statement, KRA noted that has invested in modern technology, which works efficiently as the revenue collection and settlement system from source to the exchequer, which leaves no room for revenue diversion as strict surveillance plugs revenue loopholes.

The taxman asserted that it has been keeping pace with revenue collection compared to prior year collections.

"As at the close of March 2023, revenue collection averaged 95.1 per cent on original target and 93.4 per cent on Supplementary target, representing a collection of Ksh1.554 billion and a year-on-year 8 per cent growth.

"Conscious of the mandate to mobilise and secure revenue for national development, KRA remains committed to bridging the deficit on target," the taxman stated in part.

KRA further noted that it continues to implement Revenue Enhancement Initiatives (REI) which include the rollout of eTIMS for efficient and effective VAT collection, integration of KRA systems with betting companies leading to the improved collection in Excise Tax on betting and Withholding Tax on winnings.

Also implemented included an amicable settlement of tax disputes through Alternative Dispute Resolution (ADR) and Tax Base Expansion aimed at bringing more taxpayers into the tax bracket.

"KRA continues being a professionally managed public organisation comprising of competent staff, management and board leadership, delivering their mandate within the staff code of conduct and the KRA values.

"KRA remains committed to enhancing mobilisation of government revenue, and to facilitating growth in economic activities and trade by ensuring compliance with tax and customs laws," added the taxman.

The clarification came in the wake of financial concerns affecting the government, which saw Minority Leader in the National Assembly Opiyo Wandayi on Friday, April 7 confirming initial reports of a widespread crisis that saw civil servants in various government institutions, as well as Members of Parliament (MP), cry foul over spending Easter without their March 2023 salaries.

Wandayi recalled the massive tax increases by the current regime including a 20 per cent tax on mobile money transactions, 16 per cent on internet transactions, 15 per cent capital gains tax on the transfer of property, and VAT on e-books and videoconferencing, among others.