Taxman seeks to help counties collect revenue

By: BRIAN NGUGI

The Kenya Revenue Authority says it has opened negotiations with county governments, with a view to commencing revenue collection on behalf of the devolved units.

The authority said it has been engaging with individual governments on various areas of collaboration as it seeks to provide cash collection agency services as provided for under the Public Finance Management law.

“We are encouraged by the response from the respective county governments, which we have been engaging with a view to obtaining their buy-in for our agency services,” said KRA Commissioner Domestic Taxes, Ms Alice Owour on Tuesday.

She announced the plans when she appeared before the Senate Committee on Finance, Commerce and Budget.

During the hearing, Ms Owuor said engagements with respective county governments, “are progressing on well” with revenues collected from such units now averaging Sh1.6 billion monthly, up from Sh474 million two years ago.

“Indications so far point to a general consensus by the counties to partner with KRA,” said Ms Owuor. As part of the plan, she said, KRA is reviewing its iTax domestic taxes platform system to make provisions for collection of county specific revenues.

Once complete, Ms Owuor said, the ongoing talks will culminate in the development of an implementation framework and the signing of MoUs with willing counties.

Last month, KRA embarked on a raft of new measures to enhance resource mobilisation.

They range from enhancing efficiency in tax collection as well as seeking to plug leakage avenues.

SOURCE: DAILY NATION