The Kenya Revenue Authority (KRA) has put in place a number of measures that seek to ensure that Micro, Small and Medium Enterprises (MSMEs) contribute to the country’s local revenue base.
KRA North Rift regional manager Mosses Muya says one f the measures is the establishment of desks specifically for the MSMEs.
The desks are meant to support and facilitate the players in the sector with knowledge of tax compliance.
“With increased awareness, we believe MSMEs will become key taxpayers and contribute significant revenue for the county development,” Muya said.
Latest data from the Kenya Association of Manufacturers (KAM) indicate that Kenya’s Micro, Small and Medium Enterprises (MSMEs) contribute approximately 40% of the GDP with the majority falling in the informal sector.
While there are about 7.41 million MSMEs in Kenya, only 1.56 million are licensed whereas 5.85 million are unlicensed.
Cordial relationship
Aside from targeting MSMEs, the taxman has also adopted a consultative approach with its customers in a bid to build a cordial relationship.
This approach, the KRA North Rift regional manager says is aimed at improving tax literacy.
Further, KRA has embarked on a plan to open more offices across the region.
“We’re also in the process of expanding our services footprint in the region by opening additional offices which will bring services closer to the people,” Muya said.
“These new stations will be complemented by service desks which are available at all Huduma Centres,” he added.
Meanwhile, KRA has expressed its willingness to work with counties so as to enhance revenue collection.
The agency says it had already supported Nairobi County’s cashless system that saw at least Ksh3.81 billion collected from 137 revenue streams 2020/2021 financial year.
“KRA is willing to expand to all counties to enhance on-source revenue mobilization at the county level,” said Muya who also encouraged devolved units to partner with them.
