Photo of His Excellency Lazarus Amayo, Kenya High Commision and Amit Agarwal, Citi.
This is a solution for the Kenya Revenue Authority (KRA), the body charged with the responsibility of collecting revenue on behalf of the Government of Kenya. The chosen bank has integrated its systems with KRA’s tax validation interfaces, Payment Gateway and CCRS for customs taxes. In 2015, the bank collected the KES equivalent of $1.55bn in taxes on behalf of KRA.
Deputy Commissioner, Finance
The Kenya Revenue Authority (KRA) was established by an Act of Parliament, The KRA Act Chapter 469 of the Laws of Kenya, which became effective on 1st July 1995 for the purpose of enhancing the mobilisation of government revenue, while providing effective tax administration and sustainability in revenue collection. Although it is a government agency, it has undertaken robust reform and modernisation initiatives to transform its administrative processes for efficient facilitation to taxpayers. It operates under the vision: ‘to facilitate Kenya’s transformation through innovative, professional and customer-focused tax administration’.
in partnership with
Kenya Revenue Authority (KRA) is charged with the responsibility of collecting revenue on behalf of the Government of Kenya. For many years, filing of taxes by individuals and corporate entities was manual, which contributed to many inefficiencies in the process, including:
Difficulties for taxpayers in filing manual returns and making payments at KRA offices.
Long and time wasting queues at KRA offices.
Difficulties in updating taxpayers ledgers and reconciling tax receipts.
Difficulties in the management of exceptions.
Cost and time constraints of processing of paper work.
In addition, KRA initially only operated with two agent banks to collect taxes, which created further bottlenecks in the process. Something needed to change.
Therefore, over the past five years, KRA has undergone a rigorous process of re-engineering the collections process to improve their tax collection capabilities which included many consultations within the industry, multiple bank reviews and development of new frameworks.
This process has ultimately resulted in KRA automating its tax systems, requiring integration through the payment gateway (PG) and common cash recepting system (CCRS) interface with multiple commercial bank partners including Citi, so that taxpayers can now file taxes through two platforms, iTax system (for Domestic Taxes) and Simba system (for Customs taxes). The KRA required banks to integrate in line with the newly established automation to provide consistent efficiency for tax payers.
With this automation, KRA increased the number of tax agent banks and made it possible for banks that could integrate with their interfaces to collect taxes on their behalf. Citi became a KRA tax collection agent in 2013 after integrating its systems with KRA’s tax validation interfaces, payment gateway (PG) for domestic taxes and common cash receipting system (CCRS) for customs taxes.