Private Sector CEOs in High Level Talks to Tweak Tax Policy

The Boards of the Kenya Private Sector Alliance (KEPSA) and the Kenya Revenue Authority (KRA) have reaffirmed their commitment to transforming tax administration and policy in Kenya. The pledge was made during a high-level roundtable held at KRA headquarters in Nairobi, building on nearly a decade of strategic collaboration between the two institutions, to create a fair, efficient, and business-friendly tax environment.

The meeting highlighted significant milestones from the KEPSA-KRA partnership, including the full implementation of eTIMS, which has led to faster VAT refunds; the introduction of Green Channels to ease cargo clearance; and a tax amnesty that waived KES 650 billion in penalties, thereby enhancing compliance. The tax base has also broadened significantly, with over 720,000 new taxpayers contributing to over KES 7.8 billion over the financial years since the FY 2019/2020.

KEPSA Chairperson Mr Jas Bedi, highlighted the joint efforts to enhance compliance, modernise systems, and align tax policy with Kenya’s economic realities. “The private sector is committed to supporting a stable, predictable tax regime that enables growth, especially in times of economic hardship,” he said.

He noted that while Kenya’s economy has shown resilience, growing at an average of 5.0% between 2022 and 2024, outpacing global and regional averages, challenges persist. Household poverty is on the rise, and access to credit remains constrained, which in turn dampens investment growth. “These factors underscore the need for a robust partnership between the public and private sectors to sustain growth momentum,” added Mr. Bedi.

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KRA Chairman, Mr Ndiritu Muriithi, responded by urging the private sector to engage actively in the national budget cycle, interrogating both revenue-raising measures and expenditure proposals to inform discourse on the national economic recovery.

“We must extend our focus beyond revenue collection to include budget expenditure,” said Mr Ndiritu Muriithi, Chairman of the KRA Board. “The private sector is the engine of our economy, and as such, I urge KEPSA to amplify its voice on both the Finance Bill and the Budget Expenditure, as it is essential in ensuring that government spending aligns with Kenya’s revenue strategies and sustainable economic growth.”

Additionally, Ms. Carole Kariuki, KEPSA CEO, emphasised the need to modernise and streamline tax systems, particularly the migration of legacy data into iTax and resolving issues that prevent taxpayers from accessing refunds and Tax Compliance Certificates (TCCs). “We must ensure that resolved disputes are promptly reflected in taxpayer accounts and automate residency adjustments to prevent duplicate liabilities,” she noted.

The roundtable concluded with a call to action for board members to continue fostering candid and innovative dialogue. “The KEPSA-KRA partnership continues to yield tangible improvements, and our collective efforts are key in shaping a tax system that fuels economic development and encourages compliance,” said Mr. Humphrey Wattangea, the KRA Commissioner General.

He was echoed by the KEPSA Vice Chair, Ms Brenda Mbathi, who reaffirmed KEPSA’s dedication to the ongoing collaboration with KRA. “We are confident that these efforts will yield shared successes, and we look forward to driving meaningful reforms together.”

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