The final day of the 4th Annual Tax Summit placed strong emphasis on how technology and manufacturing can drive effective revenue administration in Kenya. The discussions centered around improving operational systems and enhancing service delivery by the Kenya Revenue Authority (KRA).
Technology as a Driver of Tax Efficiency
Effective tax administration depends on efficient systems, and globally, governments are embracing technology to streamline operations. The summit’s first session focused on identifying emerging digital solutions for better revenue collection.
Oracle’s Managing Director, Dr. Corine Mbiakectha, underscored the importance of adopting big data and cloud computing to manage taxpayer information. Leveraging this data can help KRA monitor compliance more accurately and predict tax trends.
Spatial data systems were also discussed as key tools in mapping the locations of businesses, enhancing geographic targeting in tax enforcement. To succeed, KRA was urged to pursue public-private partnerships with tech companies that can provide both infrastructure and integration expertise.
Strengthening the Manufacturing Sector
The second session turned the spotlight on Kenya’s manufacturing sector and its potential to increase tax revenue. One major concern was counterfeit goods, which cut into the profits of legitimate manufacturers.
Jane Karuku, Managing Director at Kenya Breweries, emphasized the damage done by illicit alcohol and praised government efforts to combat counterfeits. Manufacturers also proposed the reduction of the Import Declaration Fees and Railway Development Levy, arguing that lowering such costs would make local products more competitive and encourage Buy Kenya, Build Kenya.
With lower production costs and better incentives, the sector could expand, thereby broadening the tax base and creating jobs—benefiting businesses and the government alike.
E-Commerce, Mobile Commerce, and the Digital Tax Gap
In the final session, attention shifted to e-commerce and mobile commerce, areas where KRA is yet to establish a comprehensive tax collection strategy.
Perry Roach of Netsweeper Inc., which has helped governments collect VAT from online businesses, stressed the importance of creating internet tax laws. However, he noted that the global nature of online platforms poses legal and jurisdictional challenges. Still, creating a national framework is a crucial step forward.
The session concluded with a symbolic moment: KRA’s Tax Education Unit handed over a tax curriculum development report to the Kenya Institute of Curriculum Development (KICD). This paves the way for tax education to be integrated into Kenya’s new school curriculum, beginning next year.
Conclusion
The summit clearly illustrated how technology and manufacturing can transform revenue administration. From digital tax solutions to empowering the manufacturing sector, embracing innovation is essential to expanding Kenya’s tax base and improving compliance. As the digital economy evolves, KRA must stay ahead by adopting smarter systems and forward-thinking policies.
