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The Kenya Revenue Authority is in the final stages of developing a new tax system to ensure it collects close to 100% of all collectable taxes in Kenya.
President William Ruto made the revelation during a joint media interview at State House on Wednesday, January 4, 2023.
"We are installing a new tax system which is going to drive the collection of value-added tax to between 90% to 97%," he said.
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President William Ruto during the Annual Kimalel Goat Auction and Cultural Fair, Baringo South Constituency in December 2022
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He said that the new system would close the revenue gap in the country, whereby KRA is only collecting about 60% of all collectable taxes.
The head of state said that the key to getting the country out of the debt hole is to put the brakes on additional borrowing and increase revenue collection.
Ruto also divulged that he had slashed about Sh300 billion from the budget to prevent the country from borrowing more than is completely necessary.
He said that with the digitization of all government services on the eCitizen platform, all taxes will be payable online and tax authorities would be able to monitor tax collection more efficiently.
"Every government service where tax is payable is going to be collectable online. I will not wait for anybody to file a return at the end of the month. We will be paying taxes as we spend our money or as we do our businesses," he said.
He added that everybody will have to pay Caesar what belongs to Caesar and there will be no exceptions.
"Beginning with William Ruto, everybody must pay tax. This is not the animal farm where some are more equal than others," Ruto stated.
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KRA Commissioner General James Githii Mburu
The president said KRA has a target to collect Sh500 billion by June 2023, an extra Sh1 trillion in 24 months and double the tax collection by 2027.