Kenya Revenue Authority Implements New System

The Kenya Revenue Authority (KRA) is not leaving anything to chance in ensuring that nobody evades tax payment starting this year.

It emerged early last year that Kenya Revenue Authority was losing a huge amount of money in tax revenues collected at the entry points into the country as some people took advantage of the loopholes in the system to evade paying taxes.

Some of these loopholes included the presence of corrupt officials at the entry points who took bribes and allowed goods into the country without due procedures being followed.

Last year, some allegations emerged that some top officials at Kenya Revenue Authority received huge bribes from British American Tobacco so as to give the company an upper hand over her competitors in the same field.

The taxman is now out to wipe out this practice and has put in place an authority’s first head of enforcement as well as boarder control that will be based within the Customs and Boarder Control Department in a move that is aimed at making sure that the taxman achieves his target.

Last year, Kenya Revenue Authority failed to reach its target in terms of revenue collection, something that raised queries about the body with some quarters blaming some officials for corruption.

President Uhuru Kenyatta also, in an effort to ensure that the body has transparency as well as accountability, called for a lifestyle audit of the officers working for the Kenya Revenue Authority.

Kenya Revenue Authority currently uses a system called Simba system that has been in use since 2005 and with the loopholes witnessed in recent times, it has been deemed unfit ,especially with the changing economic environment.

The system KRA plans to put in place is expected to have more features that will enhance better practices in risk management, security targeting and valuation of cargo.

Article by Vera Shawiza.