The Role Of Digital Transformation In Creating An Economy On Supersonics

The 9th Annual Tax Summit convened by the Kenya Revenue Authority (KRA) has come to a ceremonious end with an in-depth lecture by Dr. Shikoh Gitau on Creating an Economy On Supersonics: The Role Of Digital Transformation.

The virtual summit brought together experts across the divide, including Cabinet Secretaries who broke down the economy in terms of numbers and what needs to be done for the Kenya Revenue Authority and other agencies to enhance both revenue collection and the utilization of the same.

The summit came at a time when the government of Kenya was exploring ways to ease the cost of living burden among Kenyans through economic empowerment by lowering the cost of production and enhancing revenue collection from businesses.

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According to Dr. Shikoh, digital transformation plays a major role in economic growth, including but not limited to helping institutions such as KRA monitor and collect revenue without inconveniencing taxpayers.

“Digital transformation requires a radical rethink of how an organization uses technology, people, and processes to change business performance and customer experiences… Customer centricity is giving a delightful experience. It’s interaction at each of the tax touch points both physical and virtual,” she said.

She called on KRA to Prioritize ensuring accessibility and delight with existing digital tools available to the public. She said complexity and unclear services can lead to taxpayer confusion, increasing errors in tax compliance, with the UK losing USD 11.4 billion annually due to such errors.

“Understanding customer behavior patterns aid in predicting usage, removing barriers, promoting adoption, effective communication, and enhancing compliance. An inclusive digital tax system should pay special attention to customer segments, such as women, rural residents, and those with lower incomes, who may face challenges in accessing and meeting their tax responsibilities,” she said.

In terms of utilizing data, Dr. Shikoh emphasized the need to value data as the only valuable thing that will inform the steps the economy is supposed to take. In today’s digital era, data is akin to a precious asset and a powerful tool.

“Safeguarding individuals’ data, whether inherently possessed or acquired, has never been more critical. Our digital systems must be perceived as working in the best interest of the people, not against them,” she added.

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While Kenya has made significant strides in this digital journey, there remains much ground to cover. The path ahead is filled with exciting prospects according to Dr. Shikoh, including:

• Utilizing Data Analytics and AI: Leveraging advanced analytics and artificial intelligence to enhance tax revenue collection, detect irregularities, and streamline processes.
• Making Digital Tools More Inclusive: Ensuring that existing digital tools are accessible to everyone, including vulnerable groups, to promote widespread adoption and compliance.
• Reducing Unintended Fraud: Implementing strategies to mitigate fraud resulting from digitization by improving data accuracy and user awareness.
• Automated Servicing and Knowledge Management: Implementing automated services and knowledge management tools to assist taxpayers and enhance compliance.
• Expanding KRA Partnerships: Forging alliances and data-sharing agreements with external entities to enrich data sources and improve tax enforcement.
• Data Privacy Management: Ensuring robust data privacy practices to instill confidence in taxpayers and encourage the use of e-services.

Blockchain Opportunities: Exploring the potential of blockchain technology to enhance transparency, security, and real-time information in tax administration.

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