Kenya Revenue Authority (KRA) says it will continue supporting micro and small enterprises to enhance tax compliance. Speaking during a taxpayer engagement forum in Kisumu County on Thursday, Commissioner for Micro and Small Taxpayers, Mr George Obell, revealed that out of more than 22 million registered taxpayers, only about 7 million pay some form of tax.
Of these, approximately 3.2 million are formally employed and remit Pay As You Earn (PAYE). He said this imbalance undermines equity in the tax system, adding that the gap is often driven by limited knowledge about tax obligations. Mr Obell reiterated that the authority’s role goes beyond revenue collection to include educating citizens on taxation and their obligations, as well as putting in place simplified tax systems to enhance compliance and improve service delivery.
The Commissioner noted that the Western Region has the second-largest tax base after Nairobi, with more than three million registered taxpayers and an estimated potential of over KSh 2 trillion. However, he observed that only a small proportion currently pays taxes.
Mr George Obell said the Kenya Revenue Authority will strengthen partnerships with taxpayers by engaging them within their business ecosystems, including markets, to provide education on their tax obligations and work with them to address challenges affecting compliance.
> Digital Finance Initiative to Unlock Ksh40 Billion For Women
The forum brought together traders, entrepreneurs, and other stakeholders to discuss tax compliance challenges and explore ways of strengthening collaboration between the authority and taxpayers. Mr. Obell assured them that KRA has put in place robust measures to address issues raised by taxpayers and to enhance compliance levels, particularly among MSMEs, which form the backbone of Kenya’s economy.
“The authority is planning to introduce tax expert agents across the country to handle tax inquiries at the grassroots level under an initiative called Huduma Popote,” he said.
As part of ongoing reforms, the Commissioner also highlighted that eTIMS is not a new tax but a solution aimed at improving compliance and helping businesses maintain proper records. KRA said it is dedicated to fostering a collaborative relationship with taxpayers. “Our KRA offices across the country are open to receive queries and provide support to create an environment where businesses grow and thrive while meeting their tax obligations,” said Large and Medium Taxpayers Commissioner, Weldon Ng’eno.
He stressed the importance of bringing more businesses into the tax net while ensuring that the system remains fair and supportive of economic growth. Deepening dialogue with taxpayers and introducing practical compliance solutions is how the authority seeks to strike a balance between revenue mobilisation and creating a business-friendly environment. The engagement in Kisumu is part of a broader nationwide outreach programme by KRA aimed at strengthening trust, enhancing transparency, and supporting regional economic development.
> Treasury Proposes Increase in Ministerial Spending
Leave a comment