Kenya has been rated ‘Largely Compliant (LC)’ on implementation of the international standard for transparency and exchange of information on request (EOIR) for tax purposes. The rating was announced during the 46th Peer Review Group (PRG) meeting at the OECD Conference Centre in Paris, France.
The EOIR Peer Review report and LC rating for Kenya was approved and adopted by the Global Forum Plenary, consisting of 171 member jurisdictions. This rating highlights Kenya’s favorable legal and administrative framework in tax transparency.
The EOIR peer review encompassed a combined assessment of the legal and regulatory framework and implementation of the EOIR framework in practice as well as enhanced obligations on the Beneficial Ownership (BO) regime.
The EOIR standard requires the Global Forum members to ensure the availability of adequate, accurate, and up-to-date information on all relevant legal entities and arrangements and to ensure that tax administrations obtain the information needed to assess taxpayers’ activities, regardless of where they take place.
All Global Forum members, including Kenya, commit to being peer-reviewed against the EOIR standard, through evaluation of the effectiveness of their legal and regulatory frameworks in practice. This thorough monitoring process ensures that the 171 jurisdictions are implementing the exchange of information standards effectively.
A positive EOIR rating is an indication that various government bodies and agencies in Kenya have adequate laws and practices in place, which are in line with international standards. The positive rating also affirms Kenya’s ability to utilize Exchange of Information (EOI) for domestic resource mobilization.
Mr. Humphrey Wattanga, Commissioner General, Kenya Revenue Authority (KRA), led the Kenyan delegation consisting of representatives from KRA, the Financial Reporting Centre and the Central Bank of Kenya during the PRG meeting. The representatives were part of the Kenya EOIR Peer Review Committee which consisted of technical representatives from the National Treasury, Business Registration Service, Central Bank, Financial Reporting Centre, Attorney General’s Office, Ministry of Lands, Law Society of Kenya, Institute of Certified Public Accountants of Kenya, CMA, Kenya Bankers Association and KRA.
Kenya was also given eleven recommendations to implement to enable the country enhance its compliance with the international standards for transparency and exchange of information. KRA is continuously engaging various agencies in developing strategies for implementation of the review recommendations. The country is expected to update the Global Forum on progress made by 2026.