For any nation to thrive, its revenue authority must be more than just a tax collector; it needs to be a partner in progress, fostering voluntary compliance by earning the trust of its citizens. The Kenya Revenue Authority (KRA), as it celebrates 30 years of existence, has a clear opportunity to transform itself from a punitive agency into a citizen-focused institution that simplifies the tax process and operates with greater transparency.
To achieve this, KRA can adopt a multi-pronged strategy that puts the taxpayer at the center of its operations.
1. Upgrade the iTax platform
Tax compliance should be as easy and intuitive as possible. The current iTax platform should be burned to the ground and another more customer focused platform be built from scratch. It is so difficult to use and I remember having an issue that needed me to go to a KRA office to be sorted. For a platform issue.
They also need to develop an intuitive, feature-rich mobile app that allows taxpayers to file returns, make payments, and access services directly from their phones.
2. Better customer care
Customer care is the cornerstone of any organization and at KRA the score is almost always an F. Trying to get served remotely is a huge task and phones and emails are rarely answered. This is funny because they are quick to email and call you when you have tax arrears.
The customer service system should be overhauled to be more efficient and empathetic. KRA staff should be well trained to resolve taxpayer issues quickly and courteously, whether by phone or email.
3. Tax laws and regulations
KRA need to work with the government to simplify tax laws and regulations. KRA should ensure all communication, including forms and online instructions, is written in plain, easy to understand language. This is especially crucial for small businesses and individuals who may not have access to professional tax advice.
4. Outreach
Instead of just demanding compliance, KRA should run continuous, targeted public education campaigns. These campaigns should clearly explain why taxes matter, showing citizens how their contributions fund schools, roads, and healthcare.
5. Tax payment or returns reminders
KRA can use technology to send timely, personalized reminders for filing deadlines and payment due dates. This simple step can significantly reduce the number of taxpayers who incur penalties due to oversight.
6. Transparency and accountability
Citizens are more likely to pay taxes when they can see their money is being used wisely and responsibly. KRA can lead by example by becoming a model of transparency.
KRA should work with the National Treasury to publish regular, easy-to-read reports that show how tax revenue is being used to fund specific national projects and services. This builds public trust and shows the tangible impact of tax contributions.
7. Corruption
KRA must have a zero tolerance policy for corruption, both internally and externally. Its whistleblower protection mechanisms should be robust and well-publicized to encourage reporting of illicit activities. It is difficult to get citizens to pay taxes when they know KRA staff to be corrupt or frequently ask for bribes.
8. Broaden the tax base fairly
A fair tax system ensures everyone contributes their share. KRA can engage the National Assembly and the executive to expand the tax base without alienating the public by creating accessible pathways to compliance.
9. Incentivize the informal sector
Instead of punitive measures, KRA should create simplified, low-cost tax regimes for the informal economy. The goal is to bring these businesses into the formal system by offering incentives and a clear path to financial inclusion.
10. Harness data
KRA’s use of third-party data from sources like banks and utility companies is a powerful tool to identify potential taxpayers. This should be done with a clear focus on data privacy and used to bring more individuals into the tax net fairly.
By adopting these measures, KRA can build a relationship of trust with Kenyans, shifting the national narrative around taxation. When citizens view the revenue authority as a partner in building a better country, voluntary compliance will naturally rise, securing a more sustainable future for Kenya.