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GRACE WANDERA: Taxpayers are unsung heroes powering economic growth

KRA endeavours to create a taxpayer-friendly environment that encourages voluntary compliance

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by BOSCO MARITA

Columnists10 October 2024 - 13:38

In Summary


  • Taxpayers are the primary source of revenue for governments worldwide, financing public services, infrastructure development and essential programmes that support social welfare and economic stability.
  • The connection between tax payments and economic growth is clear: well-funded public institutions create an environment conducive to business, while strong infrastructure facilitates trade and industry.

By GRACE WANDERA

In every economy, the collective contribution of taxes serves as the bedrock of national growth and prosperity.

Taxpayers are the primary source of revenue for governments worldwide, financing public services, infrastructure development and essential programmes that support social welfare and economic stability.

The connection between tax payments and economic growth is clear: well-funded public institutions create an environment conducive to business, while strong infrastructure facilitates trade and industry.

Investments in public infrastructure, such as roads, bridges and transportation, help reduce the cost of doing business, encourage investment and improve overall economic competitiveness.


Recognising the crucial role taxpayers play in fuelling the economy, tax agencies around the world are committed to making the tax payment process as seamless and transparent as possible.

Kenya Revenue Authority endeavours to create a taxpayer-friendly environment that encourages voluntary compliance and simplifies process.

One of the commitments as outlined in KRA’s ninth Corporate Plan is to drive customer-centric service delivery, with a view to streamline tax procedures thereby making it easier and more efficient for taxpayers to understand their obligations and meet them without unnecessary friction.

Additionally, KRA intends to enhance the compliance support framework to support the dynamic needs of various taxpayer segments.

This will see the Authority tailor initiatives on tax compliance and service support to target different taxpayer segments such as the Micro, Small and Medium-sized Enterprises, who often face unique challenges in compliance, to create simplified processes for different groups to increase compliance.

The ambition to improve customer satisfaction will also be largely driven by technology, through digital systems, integrations, collaboration with developers and continuous enhancements.

This will not only promote efficiency but also ensure the optimum performance of systems.

Tech platforms will also be critical in enhancing tax simplification by breaking down traditionally complex processes and creating simpler procedures that drive voluntary compliance.

Since tax compliance is a shared responsibility with taxpayers, KRA will continually foster collaboration with various sectors and segments of taxpayers.

Our endeavour to strengthen the relationship with the individuals, businesses and communities we serve enables us to gain insights into key areas of improvement and celebrate our achievements as a people.

In this regard, every year, the month of October is set aside to deliberately celebrate and acknowledge taxpayers’ commitment to compliance.

We believe that by doing so, we not only demonstrate the significance of paying taxes but also foster a culture of compliance.

We engage in visits, engagements and consultations that enable us identify pain points in the tax administration processes and develop solutions that make compliance easier and more efficient.

Further, we have also expanded our customer support framework to ensure that taxpayers have access to the assistance they need, digitally and on the ground.

We have increased our footprint in more than 30 counties, with a commitment to expand the service offering to all 47 counties in Kenya.

We are committed to providing clear and accurate information that helps taxpayers navigate their obligations with confidence.

Our goal is to remove any barriers that might discourage compliance, ensuring that everyone can contribute to the nation’s economic health.

Going forward, we intend to explore behavioural insights to design communication strategies that nudge taxpayers toward compliance without the need for punitive measures.

We will seek to tailor communication to various taxpayer segments, craft actionable messages and incorporate loss aversion techniques in our messaging.

We are committed to continually reviewing the communication framework to make it easier for taxpayers to understand their obligations.

The writer is the Deputy Commissioner, the Marketing and Communication Department at the Kenya Revenue Authority


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