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KRA seeks more scanners to boost border revenues

Currently the taxman only has 14 old scanners which are outdated and are facing obsolesce

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by JACKTONE LAWI

Business16 May 2024 - 01:00

In Summary


  • •KRA commissioner general Humphrey Wattanga said that currently they have had to lease eight of the machines which cost Sh500,000,000 a unit.
  • •The exit and entry points include Isebania, Namanga, Loitoktok, Taveta, Lunga Lunga, Lwakhakha, Suam, Wajir, Moyale, Lokichoggio, Moi International Airport, Eldoret International Airport and Kisumu.
KRA commissioner general Humphrey Wattanga

Kenya Revenue Authority will need an estimated Sh11 billion to acquire 22 additional scanners to boost its revenue collection drive.

KRA commissioner general Humphrey Wattanga said that currently they lease eight of the machines, which cost Sh500,000,000 a unit.

The taxman had requested Sh2.13 billion this year for leasing of the of additional scanners for the country's border points.

The Commissioner General noted that currently the taxman has 14 old and outdated scanners hence the need to hire the new equipment.

“KRA man 37 points of entry where we undertake customs functions specifically revenue mobilisation. However due to change technology we have had to lease eight scanners to aid in this,” Wattanga told members of parliament.

While answering questions on why KRA had not entirely acquired its own machines, he maintained that periodic changes in the technology will likely lead to increased maintenance costs.

To enhance revenue mobilisation, the KRA Commissioner General told members of the Finance and National Planning Committee of the National Assembly that through a leasing programme they have eight modern scanners, which include drive through scanners, mobile scanners and palatine scanners.

“We have been undertaking a needs assessment in high traffic areas and we need additional 22 scanners,” said Wattanga.

The exit and entry points include Isebania, Namanga, Loitoktok, Taveta, Lunga Lunga, Lwakhakha, Suam, Wajir, Moyale, Lokichoggio, Moi International Airport, Eldoret International Airport and Kisumu.

The Authority had this financial year requested Sh2.45 billion for leasing of at least 402,043 square feet office space and Sh3.14 billion for technology, innovation and digitisation to enhance compliance and tax base expansion.

“We are engaging other institutions like the Kenya Ports Authority and Kenya Railways on a plan if we can acquire these machines,” added Wattanga.

Meanwhile, the National Treasury has adjusted its revenue forecasts for KRA downwards to account for the underwhelming mobilisation efforts witnessed in recent fiscal periods.

The total revenue estimate has been lowered by Sh81 billion, from Sh3.435 trillion to Sh3.354 trillion.

Ordinary revenue, which represents tax collections by the Kenya Revenue Authority (KRA), is now projected to fall to Sh2.913 trillion in the financial year to June 2025 from an earlier estimate of Sh2.948 trillion.

This revision aligns with the treasury's expectation of lower total revenues for the on-going financial year, now estimated at Sh2.886 trillion as opposed to the previous target of Sh3.047 trillion.

These adjustments reflect the persistent challenges in tax performance over the past year.

 


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