Increasing Tax Base in Kenya
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Date
2020
Authors
Larzen, Stephen Juma
Magero, Peter
Makanga, Aineah
Aondo, Robinson
Journal Title
Journal ISSN
Volume Title
Publisher
Kenya School of Revenue Administration
Abstract
Kenyan government has delegated the mandate of collecting revenue to the Kenya Revenue
Authority (KRA). The government depends on this revenue to fund its projects and provide
invaluable services to its citizens. Every fiscal year, the Ministry of Finance through treasury
projects the estimated amount of revenue they expect KRA to collect to supplements its budget.
However, each year KRA tax revenue collection has fallen short of the expectations. There is
a growing concern about the gap between the number of eligible taxpayers and the actual taxpaying
population in Kenya. The (KRA) data indicates that the number of taxpayers who filed
the annual income tax returns by June 2019 was about 3.6 million. With a population size of
over 47 million Kenyans, representing 7.6 percent of the total population. This research seeks
to answer the questions: Why does KRA revenue collection fall short of the projected target?
and How can KRA effectively expand its tax base? KRA reports and data, News articles,
journals, critical essays, books/book chapters, and newspaper reports were examined to answer
the questions. This Research Paper concludes that KRA has been missing out on its targets
because of a small tax base, deliberate and abetted tax evasion schemes, and ineffective revenue
collection strategies. The Kenya Revenue Authority needs to enhance its taxpayer education
program to sensitize Kenyans on their tax compliance obligations and collaborate with other
agencies to eliminate tax evasion in Kenya.
Description
ATCR Journal Article
Keywords
Tax Base Expansion
Citation
Juma, S., Magero, P., Makanga, A., & Aondo, R. (2020). Increasing Tax Base in Kenya: Challenges and Mitigation. African Tax and Customs Review, 3(1), 59-76. Retrieved from https://10.10.110.177/ojs/index.php/atcr/article/view/66