KRA Strengthens Support for Kisumu Businesses and Taxpayers to
Improve Compliance

Kenya Revenue Authority (KRA) has reaffirmed its commitment to supporting
micro and small enterprises to enhance tax compliance and expand the
country’s tax base through continued taxpayer engagement and education.
Speaking during a taxpayer engagement forum in Kisumu County on
Thursday, Commissioner for Micro and Small Taxpayers, George Obell noted
that out of more than 22 million registered taxpayers, only about 7 million pay
some form of tax. Of these, approximately 3.2 million are formally employed
and remit Pay As You Earn (PAYE). He said this imbalance undermines equity
in the tax system, adding that the gap is often driven by limited knowledge
about tax obligations.
Obell reiterated that the authority’s role goes beyond revenue collection to
include educating citizens on taxation and their obligations, as well as putting
in place simplified tax systems to enhance compliance and improve service
delivery.
The Commissioner noted that the Western Region has the second-largest tax
base after Nairobi, with more than three million registered taxpayers and an
estimated potential of over KSh 2 trillion. However, he observed that only a
small proportion currently pays taxes.
George Obell said the Kenya Revenue Authority will strengthen partnerships
with taxpayers by engaging them within their business ecosystems, including
markets, to provide education on their tax obligations and work with them to
address challenges affecting compliance.
The forum brought together traders, entrepreneurs, and other stakeholders to
discuss tax compliance challenges and explore ways of strengthening
collaboration between the authority and taxpayers.
Mr. Obell assured attendees that KRA has put in place robust measures to
address issues raised by taxpayers and to enhance compliance levels,
particularly among MSMEs, which form the backbone of Kenya’s economy.
“The authority is planning to introduce tax expert agents across the country to
handle tax inquiries at the grassroots level under an initiative called ‘Huduma
Popote’,” he said.