Kenya Revenue Authority (KRA) has marked its 30th anniversary with a renewed commitment to digital transformation, voluntary compliance and stronger partnerships in revenue mobilization, as it positions itself as a key driver of Kenya’s economic transformation.
Cabinet Secretary for the National Treasury and Economic Planning John Mbadi commended KRA for its contribution to the country’s fiscal stability, noting that since its establishment in 1995, the Authority has been central to mobilizing domestic resources and fostering economic self-reliance.
Mbadi said revenue collection has risen from Sh122 billion in 1995 to more than Sh2.5 trillion today, a growth that reflects not only institutional resilience but also the shared commitment of taxpayers, stakeholders and staff who have contributed to building a fair and transparent tax system.
He also pointed out that Kenya’s tax-to-GDP ratio remained relatively low at 16.8 percent compared to South Africa’s 25 percent.
He projected that revenues in the 2025/26 financial year would rise to Sh3.4 trillion, equivalent to 17.5 percent of GDP, up from Sh3.1 trillion the previous year.
“Achieving this target requires coordinated efforts across government, stronger private sector engagement, and deeper foreign direct investment,” the CS observed.
He called for strict adherence to integrity, accountability and transparency both in tax collection and public spending, while calling for automation of procurement and financial management systems to curb corruption.
Mbadi further challenged KRA to move beyond rhetoric on broadening the tax base and deliver measurable results, while assuring the Authority of full government support through funding and legislative backing.
KRA Board Chairman Ndiritu Muriithi emphasized the centrality of taxation in financing the state, remarking that “without revenue, there can be no state.”
He stressed that customs and border control functions extended beyond revenue mobilization to national security, as they help safeguard the economy from illicit trade and cross-border crime.
Muriithi paid tribute to KRA staff, past and present, for steering the Authority through different eras of growth, from the early years of manual operations to the present digital-driven phase.
“Every leadership cycle has left a legacy of progress, shaping KRA into a central pillar of Kenya’s economic stability,” he said.
He noted the close link between revenue performance and fiscal health, pointing out that public debt essentially represented deferred taxation.
He said stronger resource mobilization would help reduce overreliance on borrowing while safeguarding sustainable growth.
Outlining the board’s vision, Muriithi said the next phase of KRA’s growth would focus on transforming the Authority into a service-oriented institution by simplifying compliance, improving customer experience, enhancing staff welfare and creating space for innovation.
“We aspire to build public trust in taxation similar to the Swedish model, where compliance is anchored on credibility and efficiency,” he added.
KRA Director General Humphrey Wattanga reflected on the Authority’s three-decade journey, describing how it has evolved from manual systems, characterized by long queues and paperwork, to a digitally transformed administration.
“The introduction of platforms such as iTax and the Integrated Customs Management System (ICMS) has substantially simplified compliance and improved efficiency,” Wattanga said.
He cited the crossing of the Sh1 trillion revenue mark in the 2014/15 financial year and Sh2 trillion in 2021/22 as milestones that demonstrated both resilience and reform.
“During periods of disruption such as the COVID-19 pandemic, KRA adapted by embracing innovation and expanding its compliance base,” Mulongo said.
Wattanga explained that the Authority’s digital transformation is guided by the OECD’s Tax Administration 3.0 framework, which envisions a seamless, data-driven and taxpayer-centric ecosystem.
“Our goal is to integrate compliance into systems that Kenyans already use, from mobile money platforms and e-commerce transactions to artificial intelligence-driven tools that provide predictive, real-time support. We want to make compliance simple, fair and convenient,” he said.
He added that innovations such as the Enterprise API platform, GambaConnect, allowed developers to create customer-focused solutions that make compliance almost effortless.
The Authority has also introduced wider tax education programmes, strengthened stakeholder engagement and fostered closer collaboration with local administrations to nurture a culture of voluntary compliance.
Wattanga underscored the role of staff in KRA’s success, describing them as the “true pulse” of the Authority.
“The men and women of KRA have carried this institution forward in challenging circumstances. Their resilience and dedication have made the systems work,” he said.
Wattanga pledged to nurture staff creativity, support professional growth and strengthen welfare programmes to ensure inclusivity in shaping KRA’s future.
“As we celebrate this milestone, we must renew our commitment to responsible citizenship. Responsible tax conduct is not only good ethics but also good economics,” he stressed, noting that as Kenya scales up investment in infrastructure, healthcare and education, expanding the tax base would remain a national priority.
Wattanga added that KRA’s Nine Corporate Plan is anchored on technology, reforms and public trust.
“We are positioning the institution as a world-class tax administration aligned with global best practices, while also redefining the relationship between the state and citizens through transparency, innovation and inclusivity,” he remarked.
“As we chart the next 30 years, we are embracing a bold vision that demonstrates taxation can be simple, fair and supportive of business growth. We want to build a credible, service-driven institution that supports economic opportunity and job creation,” Wattanga said.
The Pearl Jubilee was described as both a celebration of past achievements and a call to collective responsibility. KRA leadership and stakeholders pledged to sustain reforms, strengthen partnerships, and drive innovation to secure Kenya’s future prosperity.
By Naif Rashid and Wendy Sheilla
