Speeches

SPEECH BY COMMISSIONER GENERAL DURING THE 2023 INTERNATIONAL CUSTOMS DAY

2023-01-30T05:16:30+00:00

Invited Guests,

Colleagues,

Ladies and Gentlemen,

It gives me great pleasure to join you today as we celebrate this year’s International Customs Day. International Customs Day is set aside to commemorate and appreciate Customs administrations globally. It is a day designated to honour the Custom officials and agencies for the significant role they play in ensuring that the global trade management is efficient, safe and secure.

Let me therefore take this opportunity to first appreciate the KRA Customs officers for the good job they are doing in our country. You have enabled KRA to efficiently facilitate legitimate trade without hindrances while protecting the country from threats posed by organized crime, smugglers, commercial fraudsters, terrorists, and even goods that could endanger the citizenry.

This has consequently contributed significantly to our success as a revenue collection agency. It is through your efforts that KRA surpassed its revenue target after revenue collection in the FY 2021-2022 reached a new record of KShs. 2.031 Trillion.

During this period, Customs and Border Control (C&BC) collected KShs. 728.530 Billion surpassing its target of KShs. 702.823 Billion. This represents a growth of 16.6% and a surplus collection of KShs. 25.707 Billion.

Customs and Border Control has continued with the good trend in the first half of the Financial Year 2022-2023. I am proud to announce that the department surpassed its half year target and collected KShs. 387.726 Billion against a target of KShs.381.643 Billion. We must therefore commend our officers for their dedication and brilliant work.

These remarkable results are attributed to implementation of world-class Customs infrastructure, professionalism and adoption of good policies. The good results can also be attributed to KRA’s efficient and business-friendly Customs services at the border posts.

Our Customs staff work tirelessly, around the clock to provide timely and reliable services as they also implement rigorous security actions at our borders countrywide.

Ladies and gentlemen

As you all know, the Government is currently scaling up revenue collection efforts by Kenya Revenue Authority (KRA) to KShs. 3.0 trillion in the FY 2023/24 and KShs. 4.0 trillion over the medium term. This is part of the country’s economic long term turnaround plan.

To achieve this, the Government will embark on tax administrative and tax policy reforms. As outlined in the 2023 draft budget statement policy, one of the strategies aimed at enhancing revenue collection is leveraging on technology and enhanced data analytics by Customs and Border Control.

Technology has proven to enhance effectiveness of Customs operations, which has consequently improved the national revenue. Currently, KRA has automated all its core Customs business processes through the iCMS platform, which has a great potential to transform the way in which we manage our Customs procedures.

The system has reduced cargo clearance and processing time, enhanced compliance, increased efficiency, and subsequently improved revenue collection. The system is a game changer in facilitating trade in the country and across the region. The system has helped reduce time taken to clear air cargo from an average of 6 days to 48 hours (2 days). This reflects a 66% improvement in clearance turnaround time which has also reduced losses by traders and drastically reduced customer complaints.

KRA has also supplemented the automated business platforms with other supportive automated solutions that promise to significantly increase the value we derive from automation.

These secondary platforms include:

Cargo X-ray scanners and non-intrusive scanners
Regional Electronic Cargo Tracking System(RECTS)
Pre-arrival clearance
Authorized economic operators (AEO’S)
One-Stop Border Posts
Single Customs Territory (SCT)
Smart gates

The RECTS has played a key role to contain the diversion of transit goods including motor vehicles and other goods into the local market, unlike in the past when the vice was rampant and hurt the local industries through unfair competition. The system has also helped cut transit time by more than 75 percent in return boosting trade at the Mombasa port.

Further, the East Africa Community Single Customs Territory has minimised the transit goods clearance time. The system has reduced unnecessary trade barriers and tariffs, which has consequently ensured faster movement of cargo to the hinterland. For example, on the Northern Corridor, the turnaround time of goods transiting from Mombasa to Kampala has now reduced from 18 days to four, while goods from Mombasa to Kigali, from 21 days to six. The time and cost of transporting goods from the respective ports of Dar es Salaam and Mombasa has also reduced from 21 and 18 days to seven and four days, respectively.

As one of the SCT initiatives, the One-Stop Border Post (OSBP) has also facilitated the cross border trade between East African Community countries and made the region to be more attractive to investment. Most OSBPs have recorded a reduction in clearance and transit time and lowered cost of doing business. The average time taken to clear a truck at the OSBPs has reduced to between five and 10 minutes compared to the previous two to three days.

The Authorised Economic Operator (AEO) programme also expedites the movement, release and clearance of goods at ports and border stations by creating a partnership between Customs and businesses where mutual trust is established. Businesses under this program are scrutinised significantly less at the border compared to other regular cross border traders.

The programme reduce cargo clearance time and the costs associated with importing or exporting cargo, while guaranteeing safe, secure, and legitimate trade. KRA is committed to facilitating the expedited processing of AEO cargo for companies that maintain high levels of compliance as they engage in legitimate trade. Currently, approximately 30% of customs revenue is collected from AEO accredited importers. The Authority intends to grow this figure by enhancing trade facilitation for the existing AEOs while expanding the program to include compliant taxpayers in other categories, especially in warehousing and the Micro, Small and Medium-sized Enterprises (MSMEs).

KRA has also installed Smart Gates at oil depots. The system allows faster clearance, loading and exit of trucks from the depots. It is expected to eliminate long queues brought about by manual processes.

KRA has also adopted advanced risk management module in iCMS which include machine learning and Artificial Intelligence (AI) in the cargo clearance process. This has helped in examination of data captured by merchants to determine the risk level and the course of action. It reduces effort for manual/actual verification of the consignments which has in return enhanced and simplified the cargo clearance process for traders.

As I conclude, let me thank all the stakeholders for the support you have accorded KRA and specifically Customs officials. I would like to reiterate KRA’s commitment in employing technology to increase efficiency of Customs operations in the country. This will ensure that our borders are secure, our business environment is conducive and the society is protected.

It will also ensure that Kenya safeguards its social economic and development goal being the government’s revenue collection agency.

Thank you

FCPA, Githii Mburu, CBS, M.G.H

Commissioner General, Kenya Revenue Authority

SPEECH BY COMMISSIONER GENERAL KENYA REVENUE AUTHORITY DURING THE CLOSING CEREMONY OF THE 7TH ANNUAL TAX SUMMIT

2021-10-19T06:45:38+00:00

KRA Board Members Present,

Chair Persons and CEOs of Various Organisations,

Summit Panellists,

Distinguished Delegates,

Distinguished Guests,

KRA Staff,

Ladies and Gentlemen

It is my pleasure to join you today as we conclude the 2021 Annual Tax Summit. As we are all aware, this event is part of the ongoing 2021 Taxpayers’ Month activities.

For the last six years, we have significantly transformed the tax summits to focus on taxpayers’ needs. The Summit has evolved from a three-hour session in 2015 to the current two-day engagement sessions.

This year’s Tax Summit was aptly themed “Redefining the Taxation Landscape: Global trends, development and impact”.

Taxation is the largest source of government revenue and therefore, plays a key role in financing various sectors including education, health, and social amenities budget. The mobilization and administration of taxes is therefore critical in the development of our country.

As a tax administration, we are cognizant of the fact that we are operating in a challenging environment when the world is facing the devastating effects of the global Covid-19 pandemic.

I sincerely thank the panellists for the great ideas and recommendations they shared during the sessions. I also thank the delegates for taking time to engage with one another in such significant topics concerning taxation in this country.

I acknowledge the recommendations made during the two-day deliberations on a wide range of issues revolving around the emerging trends in matters taxation.

Key among the recommendations is the need to ensure simplicity and tax certainty of policy, regulatory framework and processes in tax administration. I take note of your commendation that national policy should seek to align the contradicting sectoral policies to enhance coherence. It should also interrogate the expenditure with the intention of creating surplus build up from tax collection.

I affirm that simplification of tax policies can provide a predictable environment for investors and create opportunities that attracts long term investments. We will therefore continue working closely with the National Treasury and all our stakeholders to ensure that tax policies are simplified to enhance our processes and improve tax compliance.

Another recommendation is the need to widen the tax base by looking into other sectors to avoid the risk of overtaxing three major sectors which include manufacturing, banking and insurance and ICT.

This input is invaluable especially at a time when Kenya is implementing strategic tax base expansion initiatives aimed at improving revenue collection through exploration of nascent sectors of the economy.

Through the Tax Base Expansion strategy, the Government is focusing on bringing into the tax net 2 (two) million taxpayers by the end of the Financial Year 2023/2024. An addition to the current number of active taxpayers, which stands at 6.1 million. The Digital Economy is among industries that were earmarked in the Tax Base Expansion drive and is currently chargeable on services offered within the country by non-resident companies via the digital market place.

Another key recommendation during the sessions is the need to ensure minimum cost of compliance to ease tax burden from compliant taxpayers while changing the attitudes of the non-compliant taxpayers.

As recommended on the floor, minimum cost of compliance can be achieved through implementation of best practices including enhanced service delivery. This includes fast tracking of refunds, transparency in the administration of incentives, ensuring high levels of integrity and better application of risk assessments. I am proud to report that KRA has continued to invest on both human and technological resources to drive improved service delivery to reduce the cost of compliance.

We further appreciate the suggestion on stakeholder engagement and the focus on taxpayer’s feedback. I would like to assure you that KRA is committed to listening to our customers. To this end, we have in place structures and systems to enable us optimise these engagements. For instance, as part of our strong Stakeholder Engagement Framework, the Tax Summit is one of KRA’s platforms for public and private sector dialogue. In addition to many other events, KRA is able to get real-time feedback from stakeholders.

Ladies and gentlemen,

Several recommendations were made towards relooking at the issues that Kenyan raised towards the OECD Inclusive Framework. Kenya is taking part in the ongoing discussions which are aimed at arriving at a global consensus on how to address the challenge of tax and digitalisation of the economy under Pillar 1 and Pillar 2 of the inclusive framework. These are aimed at gaining new taxing rights that will allow developing countries to collect more tax revenue from the largest and most profitable Multi National Enterprises.

The Authority has raised concerns in different forums over the proposal made under BEPS Action 1 (Addressing the tax challenges of the digital economy) that limits the payment of digital tax to multinationals with a global revenue of £750M and above. This high revenue threshold will limit the number of multinational companies that would qualify to pay digital tax in source countries like Kenya. The Authority has proposed that the revenue threshold should be lowered to allow developing countries to be able to benefit from the digital tax paid by multinational companies.

I also note the recommendation made to leverage on inter-agency cooperation in the fight against Illicit Financial Flow (IFF). Kenya approved Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC) in December 2019 and ratified it in June 2020. MAC has been in effect from 1st January 2021 and currently implementing exchange of information under MAC for over 120 countries that are signatories to the MAC.

Ladies and gentlemen,

I believe that the deliberations we have had during these two days will enable KRA to invest in other avenues to meets its mandate as well as facilitate the Authority to meet its obligations. KRA has taken your recommendations seriously and our team will work towards implementing them.

In conclusion, I would like to reiterate KRA’s commitment in engaging stakeholders and listening to their views. We thank you all for making time to attend this year’s Tax Summit, and until we meet again in the next edition, I wish you all the best.

I now invite the KRA Board Chairman to officially close the 7^th Annual Tax Summit.

God bless you. God bless Kenya!

Mr Githii Mburu

Commissioner General, KRA

KEYNOTE ADDRESS BY HIS EXCELLENCY HON.UHURU KENYATTA

2018-10-31T11:29:52+00:00

Distinguished Tax Payers,

Ladies and Gentlemen,

It has often been said that there are only two guaranteed certainties that every person must endure in life; the first is taxes and the second is death. The common denominator between the two being the difficulty of letting go, either of one?s money or of one?s life.

It is therefore quite an impressive achievement that we convene here today for the 15th year running to celebrate people who pay taxes willingly and diligently. Pongezi!

Historically, this event has been celebrated annually in October a few days after Mashujaa Day as a stark reminder of the link between the attainment of our independence by our Freedom Heroes and the efforts of our modern day Heroes who sustain our sovereignty through the payment of taxes.

You will recall that during my address to the Nation on Jamhuri Day last year, I outlined my Administration?s road map towards shared prosperity for all Kenyans. This blue print referred to as the Big Four, is in essence an acceleration of our third medium term plan.

Ladies and Gentlemen,

The four priority areas are the attainment of food and nutrition security, the provision of affordable housing, the provision of affordable health care for all and increased job creation through the expansion of our manufacturing base. Over the last 10 months my administration has focused its efforts towards laying a robust legal, policy and financial foundation to support these priorities.

Having been through this exercise in painstaking detail, it is clearer now, more than ever before that there is a need for us to pay a lot more attention to both tax payers and tax collectors, because our Nation?s future lies in your hands.

Ladies and Gentlemen,

The role of taxes and the tax collector can trace its roots to the earliest point of organised communal living, where every member of the society contributed a small portion of their worldly belongings into a pool for the wellbeing of the community to be sustained. Thousands of years later, little has changed, love them or hate them both taxes and the tax collector are here to stay.

It is for this reason, that today?s gathering is so important, because it recognises the essence of a mutually inclusive existence between the state and its citizens, between taxes and development. There can be no State without people, there can be no development without taxes and there can be no taxes without the generation of wealth by our people. This recognition puts us all at par.

It is through the consistent payment of taxes by millions of Kenyans that my Administration has managed to successfully oversee one of the most audacious transformations in governance from a centralised to a devolved system of government in 5 short but extremely intense years.

This, accompanied by an unprecedented expansion of the country?s transport infrastructure, increased investment in security, maternal health programmes and free day secondary education coupled with a more than 100% increase of Kenyans with access to electricity in their homes. These are just but a few of the examples of what your taxes have funded. We have a lot to be proud of.

Today gives us the opportunity as the Government to show respect to every taxpayer and to express to each one of them our gratitude for their diligence. It also gives us the opportunity to reflect as a collective on those things that can be done to improve the environment for taxation so as to be fair in its application, efficient in its administration and effective in its utilisation.

Ladies and Gentlemen,

Even as we celebrate today, we must cast our eyes towards the future and begin to anticipate the needs of our growing economy and our youthful and restless population, hungry for opportunity and self-actualization.

Programmes earmarked for implementation under the Big Four are purposed to create wealth and opportunities for this very demographic. However, these programmes require resources that are provided by those of you who pay taxes. It is not lost on me that over the past few years the impressive growth of our GDP has outstripped the growth of the tax base and as a result, it tends to fall upon a few citizens to carry the burden of many.

We have in the recent past taken steps to widen the tax base and seek the implementation of more broad-based taxes as a means of bringing more Kenyans in to the tax net. However, these reforms are still far from enough to sustain our national aspirations.

Ladies and Gentlemen,

As I stand here to salute the KRA and the National Treasury for the implementation of the joint revenue enhancement programme, and more recently, the commissioning of the Scanner Command and Control Centre, I would like to state categorically that whereas we have made commendable strides in making our tax environment better suited for individuals and businesses, more needs to be done on both tax policy and on administration for us to have a fit for the future tax regime.

Specifically, the National Treasury must consistently review our tax policies and propose legislation to rationalize areas of duplication , simplify compliance at all levels, encourage self-declarations and make it easier for all Kenyans to willingly pay their taxes using the most convenient tools at their disposal. The tax regime should support the aspirations of the Big Four and should be aligned to mobilize investment, both domestic and foreign to leverage the opportunities created therein.

At the same time, the law must reflect the seriousness of tax collection and the consequences of default. There should be no room for tax evaders to thrive in Kenya, criminal cartels like those smuggling imported taxable goods through our ports of entry ought to be easily detected and contained in the shortest time possible.

Traders operating fake electronic tax registers and pocketing the VAT that they collect should be brought to heel.

High net worth individuals whose lifestyles are not reflective of the taxes that they pay (if any) must be compelled to demonstrate the source of their wealth and to contribute their share of taxes accordingly.

Towards this end, the use of technology as an enabler, is an immediate necessity and KRA must incorporate cutting edge technology in every aspect of its operations.

From customer care operations, detection of evasion to payment of taxes, maximum advantage should be taken of Kenya?s increasing ICT literacy rate. Every effort must be made to reduce the need for manual human interventions in what should be fully automated processes.

Use of big data to predict revenue trends and to detect leakages should be the norm and this sort of data should be used to equip policy makers with the right information to improve the quality of government policies across the board.

I expect the KRA to leverage the benefits of the soon to be rolled out, National Integrated Identity Management System as another tool in their arsenal.

Similarly, KRA as the most established and experienced tax collection entity in the country should forge a closer working relationship with County Governments to improve the revenue collection of devolved entities.

This relationship should take advantage of the multi-agency initiative to map the country?s major towns and cities. The use of digital maps to identify parcels of land and the nature of developments thereon could potentially bring in millions of additional tax payers in to the fold.

It is only through the use of technology that we can ensure that every income earning Kenyan is able to fulfil their civic duty as a tax payer.

Ladies and Gentlemen,

This picture would not be complete without drawing attention to the role of integrity in tax collection. Just like old times, the role of the tax collector today remains a solemn and powerful responsibility, one that can easily be abused.

We continue to place a heavy duty on tax payers to comply with the law, however there is an equal expectation that those charged with the duty of tax collection do not use their positions of influence to engage in extortion or acts of complicity with tax evaders.

I am cognizant that majority of the staff at KRA are a dedicated team of men and women who have managed impressive results in extremely trying circumstances, particularly over the last year or so following the electioneering period.

This said, I need not over-emphasize the fact that there is already an ongoing lifestyle audit of KRA officers in sensitive positions.

I expect the investigative agencies responsible to act swiftly and without remorse on those found to have abused their privileged status as tax collecting men and women. Let them face the law and be accountable for their misdeeds.

Ladies and Gentlemen,

As I conclude my remarks, I wish to congratulate all those who shall be receiving awards and mentions today for their exemplary commitment and great patriotism as tax paying citizens of Kenya.

I only ask that you do not tire in this duty and that next year, you will still be on the record as committed and compliant.

I would also like to commend KRA and The National Treasury for maintaining this important tradition of reward and recognition in the arena of tax payment. We must always remember to celebrate our victories, big or small and this is definitely one of those big ones.

To my fellow Kenyans, I will close by saying, Tulipe Uhsuru Tujitegemee!

Ahsanteni Sana and God Bless you All.

REMARKS BY THE COMMISSIONER GENERAL DURING THE TAXPAYER?S DAY

2018-10-31T14:20:56+00:00

Your Excellency the President of the Republic of Kenya,

Cabinet Secretary of the National Treasury,

Cabinet Secretaries with us today,

Principal Secretaries present,

Chair Persons and CEOs of various Associations,

Distinguished Guests,

KRA Staff,

Ladies and Gentlemen.

Your Excellency Sir,

On behalf of the Board and Kenya Revenue Authority staff, I wish to express our gratitude for your presence here to preside over this significant activity in our National Calendar, when we recognize and reward distinguished taxpayers from various sectors of the economy.

Your Excellency Sir,

You have consistently presided over this event since you took office, a fact that confirms the now established tradition, where the Head of State leads in celebrating all Taxpayers? Day. We shall continue reciprocating the confidence demonstrated by your presence by taking all measures necessary to ensure that those we serve, receive quality services that encourage them to embrace tax compliance.

This event is the culmination of a month-long series of activities that make up the Taxpayers? Month. The Taxpayers? Month is held annually every October and it is dedicated to appreciate all taxpayers for the pivotal role they play in the development agenda of this nation.

As it has been the tradition, KRA appreciates taxpayers in different ways throughout the month. Some of the major activities this Taxpayers? Month include early morning activations, tax clinics, taxpayer visits, the Tax Summit and Corporate Social Responsibility initiatives. I am sure most of you have bumped into KRA staff in the early morning traffic, this month, during the Customer Service Week. We have also visited a good number of you at your places of work just to express our gratitude for the important role you play in this country. In a nutshell, we are telling you that KRA values you by all means and that your efforts do not go unnoticed.

Unlike the past years, we did not hold the Taxpayers? Day in 2017 owing to the political landscape then. It is for this reason that the 2018 Taxpayers? Day will be a double award ceremony where we shall award both the 2017 and 2018 distinguished taxpayers. We at KRA believe that a person who feels appreciated will always do more than expected and it is for this reason that we express our gratitude.

Your Excellency Sir,

The 2018 Taxpayers? Month has been anchored on the theme; Expanding the Tax Base to Enable the Big 4 Agenda. At KRA, we understand the task ahead of us in terms of collecting revenue to make the Big 4 Agenda development plan a dream come true.

I would like to assure you that KRA is fully committed to going an extra mile to facilitate funding of this tremendous project and to make the dream of this country come true.

To achieve this, we have embarked on tax base expansion as one of the strategic measures of enhancing revenue mobilisation under revenue enhancement initiative in our plan of bringing in more revenue.

KRA has prioritised the use of technology to better facilitate tax collection. In the case of Customs, the Simba System is being replaced with a more versatile platform known as the Integrated Customs Management System (iCMS), that will help address intractable challenges.

Most of the system?s modules are already at the piloting stage and KRA is preparing for the launch. One of the most notable and immediate wins for KRA and the importers once the system is fully rolled out is reduced clearance time for goods. iCMS will enable Kenya to operate on world best practices in Customs management. Apart from enhanced efficiency, iCMS shall enable KRA to bring more revenue to the national revenue reserves.

Your Excellency Sir,

Another technological platform under Customs management which has transformed our operations is the Regional Electronic Cargo Tracking System abbreviated as RECTS. Since its launch in March 2017, KRA has realised significant benefits as far as transit cargo tracking and monitoring is concerned. Some years back, Kenya was grappling with the menace of cargo diversion and dumping which consequently led to substantive loss of government revenue through tax evasion. RECTS enables KRA and counterpart revenue administrations in Uganda and Rwanda to have a real-time view of cargo in transit and to ensure that the cargo gets safely to destination as per the transit documents.

With automation of key processes, including decisions on cargo valuation, KRA expects to see better revenue collection and more efficient trade facilitation.

KRA has elaborate revenue enhancement initiatives aimed at widening the scope of domestic taxes collection. That said, even after the launch of the simplified rental income programme, KRA has information that the number of landlords in our database does not reflect the actual number of landlords on the ground. With this in view, we target to recruit an additional 66,000 landlords by 2021. To achieve this, we shall rely on intelligence reports to identify non-compliant developers, use of third party data and block management in high density estates, among other strategic measures.

Other revenue enhancement measures under domestic taxes include enhanced debt programme and data driven compliance. We anticipate to collect additional Ksh 97 Billion in domestic taxes at the full implementation of the programme.

Your Excellency Sir,

Another key revenue growth driver will be the implementation of the 15 per cent presumptive tax which shall effectively replace the current turnover tax regime. I would like to thank the Cabinet Secretary of the National Treasury for this proposal in his Budget Statement in June. The significant number of small scale traders who were left out of the turnover tax bracket will now have a place to call home. Our target is to bring on board more than 1.56 million taxpayers with single business permits who were not included in the turnover tax regime. We are optimistic that introduction of presumptive taxes will increase revenue collection. To this end, I would like to urge all the concerned stakeholders ranging from traders to county governments and all policy makers at large to throw their full weight behind the implementation of this new tax regime.

In order to enhance our engagement and interaction with taxpayers, we have also invested in a modern customer relationship tool, the Customer Relationship Management (CRM) solution hosted at our contact centre. Through CRM, we now register an average of over 40,000 phone calls per month from taxpayers seeking various services. KRA also has a robust online presence on social media platforms with an average of over 95,000 interactions monthly. We expect these figures to continue to grow especially after the full roll out of the system.

There are a lot more long-term, medium-term and short-term key initiatives we have in place to better the tax administration in Kenya. Apart from use of technology, KRA is undergoing a robust transformation cycle at the moment which aims at enhancing operational efficiency as well as ensuring best industry standards. In a few years to come, we shall be looking at a completely different KRA. With enhanced operational efficiency as embedded in the ongoing transformation agenda, we are optimistic that the landscape of revenue mobilisation and collection in this country will be completely changed.

During the Taxpayers Month, we deliberated on a wide range of topics which include: expanding market access for revenue enhancement, accelerating growth competitiveness of the manufacturing sector as well as taxation in emerging sectors such as extractive and electronic commerce.

I believe that the deliberations made provided solutions for enhancing and supporting KRA?s role in Tax and Customs Administration to the Big Four Agenda.

Further, KRA has been considering introducing tax education in the Kenyan education system for a while. KRA and Kenya Institute of Curriculum Development (KICD) have therefore partnered to mainstream tax education in the Kenyan education system curriculum and KICD presented the report to KRA during the 4th Annual Tax Summit.

The report revealed that there is a 95 per cent need for incorporation of tax education in the new competency based curriculum in order to equip learners with requisite tax knowledge.

Your Excellency Sir,

As I conclude, I wish to congratulate all the taxpayers who are set to be awarded today. This country cannot thank you enough for your significant contribution. I also wish to urge all of us as taxpayers to uphold compliance at all times. As someone once said, the cost of being compliant is very cheap. The reverse is also true. To bring to a close my remarks I would like to reaffirm to all of you our commitment to taxpayer facilitation for purposes of continued cultivation of a culture of compliance among all of us.

I wish to thank you once again Your Excellency Sir, for gracing this event. I also thank the KRA Board and staff for their continued dedication to our call to duty

Thank you very much for your audience.

God bless you!

J.K. Njiraini, CBS

COMMISSIONER GENERAL

SPEECH BY THE KRA BOARD CHAIR DURING THE TAXPAYER?S DAY

2018-10-30T14:06:58+00:00

H.E. Hon. Uhuru Kenyatta, President of the Republic of Kenya, and Commander in Chief of the Kenya Defense Forces.

Cabinet Secretaries Present.

Kenya Revenue Authority Board of Directors.

Commissioner General and Senior Management of the Kenya Revenue Authority.

Distinguished Private Sector represented here today.

Our Distinguished Taxpayers,

Your Excellency Sir,

I join the KRA Commissioner General in welcoming all of us to today?s distinguished Taxpayers Award Ceremony. Allow me to acknowledge the presence of my fellow KRA Board Members and the KRA Management team. (Introduce Board Members and Commissioner)

Your Excellency Sir,

Today, marks a great day when taxpayers are celebrated and recognized for their contributions to the economy. This day is ideally placed after Mashujaa Day on which we celebrate our heroes and recognize their sacrifice that led to the independence of our country. Taxpayers have also liberated our country by ensuring that we finance our own budgets and spur development.

Your Excellency Sir,

We have taken time throughout Taxpayers? Month, to thank our taxpayers who are the reason why the government exists. It is through their hard work and determination to build the country through the taxes they give to KRA.

While marking the 13th Taxpayer?s Month, we highlighted the fundamental role of revenue as an enabler to the government?s agenda-The Big 4 Agenda. Our focus as KRA is on tax base expansion strategy geared towards new, high potential revenue frontiers to generate revenue to fill the budget deficit.

Your Excellency Sir,

KRA intends to contribute towards successful implementation of the Big 4 Agenda through various tax incentives. Over the years, KRA has demonstrated its capacity to serve as a key pillar in supporting Kenya?s development agenda through effective revenue mobilization. This has been earned through consistent focus on reforms aimed at modernizing revenue administration processes, both legal and administrative.

Your Excellency Sir,

The government?s Big 4 Agenda therefore coincides with KRA transformation Agenda, to create operational efficiency and support Kenya?s development aspirations. This strategy is to reengineer business processes by leveraging on technology to drive collection and service delivery.

KRA aims to achieve transformation through aligning work practices to technological innovation, leveraging on data generated through technology systems as a means of enhancing compliance, refocusing customer interactions through redesign of service delivery approach and building taxpayer trust through new staff culture orientation.

KRA?s approach of the Big 4 agenda is through tax base expansion. This will be achieved through data-driven compliance among professionals, High Net-Worth compliance, Informal sector, E-Commerce, taxpayers with in-active PINs and mobile commerce compliance.

Your Excellency Sir,

As a tax administration KRA has various challenges hindering revenue collection. Tax evasion, stands out amongst these challenges, globally and locally. However, KRA, together with other government and international agencies continue to innovate ways to deal with this problem. We have put in place various automated systems such as iTax, Integrated Customs Management System, Excise Goods Management System and Regional Electronic Goods Tracking System.

Additionally, KRA has created a dedicated department (Intelligence and Strategic Operations) and continues to build capacity of its highly specialized personnel in investigations by training them. The vices at hand are a global menace and our success to effectively deal with them calls for cooperation and joint efforts from all the concerned stakeholders. KRA together with other stakeholders in the multiagency task force on illicit products and counterfeits is agile in fighting varied forms of tax evasion.

In conclusion, I wish to reassure you all that KRA remains committed to ensuring that Kenya achieves its social economic and development goal by playing the role of the government?s collection agency.

Thank you all for the support accorded to KRA, during this Taxpayers? Month, congratulations to all taxpayers who will be awarded in today?s ceremony. Indeed, each and every compliant taxpayer deserves recognition for ensuring Kenya?s financial independence.

Thank you,

Ambassador Francis Muthaura,

REMARKS BY COMMISSIONER GENERAL AT 2018 TAXPAYERS MONTH LAUNCH

2018-10-01T06:17:28+00:00

Ladies & Gentlemen

I am pleased to welcome you to the launch of the 2018 Taxpayers Month activities. The hosting of the annual Taxpayers Month is meant to celebrate the taxpaying public. who contribute towards our country's development agenda.

The month is celebrated through a series of activities which include the hosting of a Customer Service Week, visits to selected taxpayers, a schools tax competition, various CSR events and the climax being the Taxpayers Luncheon to be hosted towards the end of the month.

During the month, we aim to launch key initiatives geared towards improving customer service delivery including the introduction of scanners at the JKIA passenger arrivals terminal and the commissioning of our Scanner Command and Control Centre located on the 13% floor of Times Tower. The introduction of passenger baggage scanning at JKIA is an important milestone that will greatly help in addressing customer concerns about previous haphazard stripping of passenger personal effects. A similar approach is being adopted at key passenger entry points including at Moi Airport in Mombasa and also at key border entry points including Namanga, Busia and Malaba. By introducing scanning technology, we hope to improve both Customs detection capacity but in addition remove inconveniences for arriving passengers.

Ladies & Gentlemen,

KRA has in the past three years placed great emphasis on improving relationships with taxpayers through business process reforms and the introduction of modern technology. Among the key process reforms we have undertaken include the re-configuring or our tax compliance and audit process so as to anchor these on risk profiles and data analysis. This approach, commonly internally referred to as Data Driven Compliance is meant not only to help us optimize our compliance and audit interventions but in addition to assure objectivity in our engagements with taxpayers. In doing so, we aim to remove perennial complaints from taxpayers about unfairness and bias in audit selection.

Apart from this, we have also restructured our tax dispute resolution processes so as provide transparency in the resolution of disputes. In this regard, our revamped Tax Dispute Resolution programme will provide taxpayers with a credible, transparent and customer friendly process that removes perception about unfairness and underhand dealings in the resolution of tax disputes. Moreover, the new framework will also provide standardization in the approach to dispute resolution besides ensuring speedy resolution. Through this programme, we aim to substantially reduce the number of tax disputes finding their way into the judicial system with the ultimate goal being to resolve at least 80% of tax disputes internally.

Besides process changes, we have also through technology investments sought to provide taxpayers with easy mechanisms for tax payment and accessing KRA services. Our iTax system which is now in its 4th year has eliminated major bottlenecks that taxpayers used to endure while interacting with KRA. We are also in the process of rolling out the Integrated Customs Management System, through which we expect to provide much improved services for those involved in cross-border trade. Besides improved taxpayer service delivery, both systems also enable KRA fo more effectively manage interactions with taxpayers through the wealth of data the systems deliver, and which data facilitates better control over taxpayer compliance activities.

Among the other key technology solutions we have deployed is our new Customer Relationship Management platform, which has made with taxpayers a lot easier and productive.Through this platform, we are now able to reach out to large numbers of taxpayers to appraise them of key events including tax filing dates. During the last income tax filing season for example, we sent 5 million emails with 75% successful delivery rate. The CRM platform when complimented by our Contact Centre facility has also enabled us to interact with an average of 40,000 phone callers per month and 95,000 monthly interactions through social media.

Ladies & Gentlemen,

These investments besides helping improve customer experience are core to our Revenue Enhancement Strategy, among whose key pillar is the Expansion of the Tax Base. The Tax Base Expansion strategy or TBE focusses on tapping into the potential provided by technology to identify and bring into the tax net, Kenyans who are engaged in painful business and who ought to be paying tax but are not. The TBE strategy targets to acquire information for tax base expansion purposes through access to key databases in both the private and public sectors. Data obtained in this manner is thereafter utilized to assess the compliance status of the taxpayers identified, with appropriate action then being taken to assure their compliance. Some of databases we have targeted in the first stages include those on mobile payments and those maintained by regulatory and professional bodies. We are also sourcing data from major private players including key public infrastructure contractors and hospitality service providers including major hospitals. By applying this strategy, we anticipate net an extra new 500,000 taxpayers from whom we expect to collect approximately Sh.60 billion in the current year.

Ladies & Gentlemen

The various changes that we have implemented can only succeed if those entrusted with implementation perform their roles as expected. A key pillar in our ongoing programmes therefore is the drive to transform the way our staff work. We are doing this by helping staff appreciate the changes that have taken or are taking place, assisting them fit into new/emerging roles and equipping them with skills necessary to adjust to changing needs. This drive is captured through our organizational Transformation Programme, commonly referred to internally as the Transformation Agenda or TA. We have been running with our TA programme for the last 20 months and have during that period, been able to deliver the message to most staff about the change that is happening. We have also set an elaborate support framework that helps staff understand the basic tenets of the TA, what it is and what it is not. This last observation is important because initially there was apprehension that the TA was about retrenchment. We have since been able to communicate and get staff to appreciate that TA is about adjusting to change and finding the best ways through which fit into and exploit the change.

Ladies & Gentlemen,

I wish to conclude by thanking all our taxpaying public for their continued dedication towards our country by paying their rightful share of tax. I also wish to thank the Cabinet Secretary and his team for the valuable support we continue to receive from The National Treasury. Finally, I wish to very sincerely thank Team KRA for the great dedication you have shown in continuing to resolve the challenges that confront us daily in our quest to enhance revenue collection. Let us continue with this spirit, knowing that our collective will is greater than the current challenges and that persistence will ultimately deliver the promise that Kenyans yearn for.

Finally, I wish you all a successful and fruitful Taxpayers month 2018.

J.K. Njiraini, CBS

COMMISSIONER GENERAL

SPEECH BY THE KRA CHAIRMAN OF THE BOARD DURING THE LAUNCH OF THE TAXPAYERS' MONTH

2018-10-01T04:39:34+00:00

Chief Guest,

Members of the KRA Board,

Commissioner General - KRA, Mr. John K. Njiraini, KRA staff,

Distinguished Guests,

Ladies and Gentlemen:

Honourable Cabinet Secretary for National Treasury, this is a great day as we launch the 13 Taxpayer's Month to celebrate the role that taxpayers play in the development of this country.

Honourable Cabinet Secretary let me first thank our taxpayers who are the|reason why the Government exists because through their hard work and determination to build the country, KRA is able to collect taxes. This is the 13 taxpayer's month since the program started. KRA sets aside the month of October to celebrate compliant Taxpayers for their relentless efforts in meeting their tax obligation. The 2018 Taxpayers Month will be driven by the theme; ?Expanding the Tax Base to Enable the Big 4?.

This theme highlights the fundamental role of revenue as an enabler to the government?s transformation agenda-The Big 4. The tax base expansion strategy is geared towards focusing on new, high potential revenue frontiers to generate adequate revenue. KRA intends to contribute towards successful implementation of the Big 4 Agenda through various tax initiatives.

Indeed, KRA has over the years demonstrated its capacity to serve as a key pillar in supporting Kenya?s development agenda through effective revenue mobilisation. This achievement has been earned through consistent focus on reforms geared towards modernising revenue administration processes both legal and administrative.

The Big 4 Agenda therefore coincides with KRA transformation Agenda, to create operational efficiency and support Kenya?s development aspirations. The strategy is to reengineer business processes by leveraging on technology to drive revenue collection and service delivery.

In this way, KRA?s: approach of the Big 4 agenda is through tax base expansion. This is data driven (matching) in the areas of Compliance among professionals, High Net-worth compliance, Informal sector, e- commerce, taxpayers with in-active PINs and Mobile commerce compliance.

Today we have the privilege and honour of unveiling the Former Chief Justice, Hon. Dr. Willy Mutunga, as the KRA Tax Ambassador. Dr. Willy Mutunga?s commitment in championing Domestic Revenue Mobilization for Kenya?s economic sovereignty is commendable. The Tax Ambassador Programme will go a long way in helping us realize our revenue mandate. I personally, on behalf of KRA, thank you for the support you have accorded us so far. I look forward to a sizable increase to our taxpayers? register, courtesy of your passion for tax mobilization.

KRA is also today launching the new-look website. This is a sign of our corporate intention to. improve our customer experience and enhance taxpayer engagement through new ways of public management. We foresee a multi-fold improvement in customer satisfaction levels and utilization of the website as a tool of trust in the course of tax service delivery.

Finally, revenue figures continue to grow annually and we do not take this for granted. That is why we are proud to be celebrating taxpayers this entire month in appreciation of their hard work and belief in Kenya?s progress.

My board of directors shares in the KRA vision and their full representation is testimony to this. I thank them for supporting my leadership in making KRA a better. and more resilient partner in our nation?s development.

With these remarks, I now wish ?to invite you Honourable Henry Rotich, CS National Treasury, to officially launch the 2018 Taxpayer's Month.

Thank you

Ambassador Francis Muthaura,

Chairman of the Board, Kenya Revenue Authority

KEYNOTE ADDRESS BY THE CABINET SECRETARY/NATIONAL TREASURY, MR. HENRY ROTICH, EGH DURING THE TAXPAYERS MONTH LAUNCH

2018-10-01T04:22:51+00:00

Chairman and Board of Directors, Kenya Revenue Authority,

The Commissioner General,KRA

The KRA Tax Ambassador, former Chief Justice & President of theSupreme Court, Dr. Willy Mutunga

Management and Staff of Kenya Revenue Authority,

Distinguished Taxpayers,

Ladies and Gentlemen

I feel very honoured to preside over the launch of this year?s Taxpayers Month (TPM). I take this opportunity to once again thank the Kenya Revenue Authority (KRA), for bringing us together as taxpayers to celebrate this significant event. The Government and KRA have sustained this spirit of appreciating our taxpayers over the last 13 years. This is commendable and I urge KRA to sustain this initiative.
Ladies and Gentlemen, taxpayers? month has been set aside every calendar year to recognize taxpayers in various sectors of our economy. The selflessness, hard work, and industry of these patriotic taxpayers has enabled Kenya fund development programmes. Through this effort, tax compliance has enabled us to meet our Development aspirations as a Nation.
As a country wholly dependent on the patriotism of its diligent tax compliant citizens in building the economy, you have done Kenya proud. For this reason, I pay special tribute to you the taxpayer. I salute KRA for tirelessly working with taxpayers and the Kenyan citizenry in realizing our revenue mobilization agenda.
I also commend KRA for taking the bold step in imputing a social face in our work. That KRA thought of impacting on lives of children in their Corporate Social Responsibility (CSR) agenda for the month is not only novel but also socially impactful. It shows you truly care about future taxpayers to whom we will pass the nation-building baton.
I look forward to your Tax Summit later in the month ? which is a productive platform for discoursing around our major tax challenges, both at strategic and operational levels. I hope that through this Forum, we improve and enrich our stakeholder engagement portfolio, and ensure an all-inclusive tax administration approach. I urge all of us here to utilize the Forum to drive evidence-based tax policy formulation and implementation agenda.
Further, I thank the former Chief Justice & President of the Supreme Court, Dr. Justice Willy Mutunga for in a humble and honourable way accepting to be KRA Tax Ambassador. Your commitment to a tax compliant society cannot be understated. We hope that through the selfless act of the single person in you, Kenyans will believe in tax compliance and view paying of taxes as a source of personal pride and unrivalled call to patriotic duty. We extend this invitation to you at the National Treasury as well ? that through your knowledge, personal reflections, and conviction in such a critical subject, we may benefit on how to make tax compliance a way of life rather than a hot and debate-ridden event.
Today, I will also be presenting to you the new KRA website. The new look portal is taxpayer friendly and will refine and broaden our interaction with citizens to improve customer experience. As one of the two platforms for landing into KRA (together with the Contact Centre), I am proud to be associated with the bold step KRA has taken to ? its service delivery and inject innovation into new public management. KRA?s winning of the modern customer experience award this year is testament to this fact.
Ladies and Gentlemen, as the Commissioner General earlier noted, the 2018 Taxpayers Month activities shall be driven by the theme ?Expanding the Tax Base to Enable the Big Four Agenda?.
In the last few months, taxation has lingered on the lips and tongues of Kenyans and there have been all sorts of analysts, conspiracy theories and declarations of doom. Taxation as a package can be confusing and overwhelming to anyone, most especially those doing business. It is something you are alive to everyday in your purchases and in your calculations as well as your monthly submissions.
When the Government of the day sets about putting up tax laws, it may be considered by its citizenry as being punitive, yet it is the only way by which an economy grows and the Government serves her people. Arguably, these commitment cannot be met without taxation. We cannot provide the critical social services in health and education needed by the majority of Kenyans without taxation.We cannot meet the commitments under the Big Four Agenda without taxation.
Ladies and Gentlemen, given these resource requirements, over the years as a Government we have initiated a number of reforms both legal and administrative targeted at improving tax compliance and expanding the tax base.
Allow me to highlight some of these reforms. First, we have passed appropriate tax legislations aimed at simplifying and modernizing our tax laws. In this pursuit, most of the Tax Statutes have been reviewed. We have already simplified and modernized the VAT, Tax Procedures and Tax Appeals Tribunal legislations and a new Excise Tax Act is fully operational.
Second, through the budget speech that I delivered in June this year, we | proposed key amendments to the Value Added Tax Act, the Tax Appeals Tribunal Act, Excise Duty Act, Tax Procedures Act, Betting, Gaming and Lottedes Act, Kenya Revenue Act/Public Finance Management Regulations and the Stamp Duty Act. The overall goal of these amendments is to expand the tax base as well -as raise tax compliance levels a notch higher.
Third, we are in the process of overhauling the Income Tax Act. Already, we have a draft Income Tax Bill that is being drafted by the Attorney General after undergoing public participation in accordance with the Constitutional requirement. ? The review of the Income Tax Act was informed by the need to simplify and modernize the Act, expand the tax base; enhance equity and progressivity and incorporate the international taxation principles including transfer pricing. We shall shortly be submitting the Bill to Parliament for approval.
Fourth, together with the other East African Community (EAC) Partner States, we are in the process of reviewing the EAC Customs Management Act, 2004 and the EAC Common External Tariff. These reviews are expected to address implementation challenges and enhance efficiency in customs administration in the region.
Fifth, we are expanding the tax base by targeting informal sector, pursue non- filers and increase focus on taxation of international transactions and transfer pricing. For instance, in the budget speech that I delivered in June this year, we introduced a presumptive tax on business permits.
Sixth, together, with KRA, we have enhanced the use of technology to improve tax administration and collection. As you are aware, Kenya is among the first countries in the world to aggressively build an IT ecosystem in order to ease tax administration while at the same time enabling the taxpayers to comply. The use of technology has facilitated the collection and assessment of taxpayer data, enabling quick and targeted responses to taxpayers for enhanced compliance.
There is no doubt that all the technological innovations that we have put in place to enhance tax administration such as i-Tax, Regional Electronic Tracking System (RECTS), Integrated Customs Management Systems (iCMS), and Excisable Goods Management System (EGMS), have been helpful in this respect.
These reforms have yielded fruits with our tax revenues growing over the years. Building on this progress, we are currently implementing a Revenue Enhancement Initiative Programme together with the Kenya Revenue Authority (KRA), which focuses on enhancing tax administration and compliance.
Key among the initiatives under the Revenue Enhancement Initiative Programme, is the use of i-Tax system which will help to detect non-compliance through data matching and 3rd party data utilization.
To recoup full benefits of the technological integration and innovation, I urge KRA to expedite the integration of i-Tax with the Integrated Customs Management Systems (iCMS) and IFMIS. This will make Customs declaration processes more customer friendly and prevent concealment,undervaluation, mis-declarations and falsifications of import documents. This will further enable KRA identify all the persons and firms doing business with the Government, either at the National or at the County Level. In this respect, I direct KRA Board and Management to ensure that this integration is completed and fully operational by the end of this quarter.
In conclusion, Ladies? and Gentlemen, I reaffirm the Government?s commitment to fostering a conducive business environment. We will continue to pass appropriate legislations in order to make it easier to start and run businesses in Kenya. We will not relent in the current efforts in combating illicit trade and contrabands. We will also reinforce our support to you in strengthening your leverage on technology to reform tax processes and prioritize customer-focused revenue administration.
Finally, I commend all of you for the immense contribution to our country?s development. I urge you all to support this Taxpayers Month.
It is now my pleasure to launch the new look KRA website (waits for two minutes for the website feature to play) and unveil our Tax Ambassador, Hon. Dr.Willy Mutunga (He comes up and shakes hands in applause).
I now declare the Taxpayer?s Month, 2018 officially launched.

Speeches

SPEECH BY COMMISSIONER GENERAL DURING THE 2023 INTERNATIONAL CUSTOMS DAY

SPEECH BY COMMISSIONER GENERAL KENYA REVENUE AUTHORITY DURING THE CLOSING CEREMONY OF THE 7TH ANNUAL TAX SUMMIT

KEYNOTE ADDRESS BY HIS EXCELLENCY HON.UHURU KENYATTA

REMARKS BY THE COMMISSIONER GENERAL DURING THE TAXPAYER?S DAY

SPEECH BY THE KRA BOARD CHAIR DURING THE TAXPAYER?S DAY

REMARKS BY COMMISSIONER GENERAL AT 2018 TAXPAYERS MONTH LAUNCH

SPEECH BY THE KRA CHAIRMAN OF THE BOARD DURING THE LAUNCH OF THE TAXPAYERS' MONTH

KEYNOTE ADDRESS BY THE CABINET SECRETARY/NATIONAL TREASURY, MR. HENRY ROTICH, EGH DURING THE TAXPAYERS MONTH LAUNCH

Thank you and God Bless You All.

October 1, 2018