The Kenya Revenue Authority (KRA) has assured Kenyans that it is focused on reducing the financial strain on salaries rather than imposing additional deductions.
During a television interview with NTV on March 11, KRA Chairman Ndiritu Muriithi explained the agency’s resolve to broaden the tax base to ease pressure on workers’ pay slips.
“We are not going to raid pay slips any further. Moving forward, we should be looking at how to ease the pressure on pay slips. We will do that by expanding the tax base,” Muriithi stated.
He explained that KRA is leveraging technology to simplify tax collection, ensuring more businesses and individuals contribute fairly. He highlighted Value Added Tax (VAT) as a key area where technology is improving compliance, helping distribute the tax burden more equitably.
To support this initiative, KRA has established a dedicated department to streamline taxpayer registration, making it easier for businesses and individuals to formalize their tax obligations.
As part of its expansion strategy, KRA plans to adjust VAT thresholds and use technology to identify businesses that should be paying VAT but are currently outside the system. Muriithi emphasized that a simplified registration process will encourage more businesses to enter the tax net.
Additionally, he clarified that Pay As You Earn (PAYE) is an individual tax obligation, while employers act as designated agents to collect and remit it.
“PAYE is the responsibility of the individual, while the employer is the designated agent for collection,” he explained.
Muriithi also revealed that KRA is enhancing the electronic Tax Invoice Management System (eTIMS) to make it simpler and more efficient for taxpayers.
“Our system should not be difficult to use, and we are improving it to make it more responsive,” he added.
