The Kenya Revenue Authority (KRA) has launched a tax amnesty programme as part of the Finance Act, 2023.
This significant initiative aims to promote tax compliance and financial inclusion by offering a waiver on interest and penalties on tax debt up to 31st December 2022.
The programme, which will be in effect from 1st September 2023 to 30 June 2024, is designed to help taxpayers achieve tax compliance.
It allows them to voluntarily declare their historical tax liabilities. Once declared, taxpayers can settle the principal tax amount while benefiting from not having to pay the associated penalties and interest.
This programme applies to individuals who have penalties and interest but no principal taxes due for periods up to 31st December 2022.
It also applies to those who have principal tax accrued up to 31st December 2022, provided they pay the outstanding principal tax debt by 30th June 2024.
The introduction of this tax amnesty programme marks a significant step towards enhancing tax compliance and financial inclusion in Kenya.
It provides an opportunity for taxpayers to clear their outstanding tax liabilities without the burden of additional penalties and interest.
Taxpayers are encouraged to take advantage of this amnesty period to settle their outstanding tax liabilities and contribute towards building Kenya’s economy.
To assist taxpayers in understanding and benefiting from this programme, the KRA has provided guidelines on its website.
To ensure compliance, KRA aims to achieve a revenue target of Sh2.7 trillion by the end of the current fiscal year.
Revenue Service Assistants (RSAs)
As a result, the tax collector has deployed paramilitary-trained officers, known as Revenue Service Assistants (RSAs), to facilitate tax-related activities directly with Kenyan citizens.
This team of 1,400 officers, who are recent graduates from the Kenya Defence Forces Recruits Training School in Eldoret, will play a multifaceted role in supporting KRA’s efforts.
Their mission is unique as it brings tax services right to the doorsteps of Kenyan citizens.
Revenue and Net Exchequer for FY’2023/2024
As of the end of August 2023, the total revenue collected amounted to Kshs 323.4 billion according to the National Treasury’s revenue and net expenditures for the second month of FY’2023/2024, ending 31st August 2023.
This represents 12.6% of the original estimates of Kshs 2,571.2 billion for the fiscal year 2023/2024 and is 75.5% of the prorated estimates of Kshs 428.5 billion.
In terms of tax revenues, a total of Kshs 317.6 billion was collected during this period. This is equivalent to 12.7% of the original estimates of Kshs 2,495.8 billion and 76.3% of the prorated estimates of Kshs 416.0 billion.