Latest news with #KenyaRevenueAuthority
Reuters
12 hours ago
- Business
- Reuters
Kenyan lawmakers oppose tax authority's bid for unrestricted data access
NAIROBI, June 17 (Reuters) - Kenya's parliamentary finance committee has rejected a proposal to grant the country's revenue authority unrestricted access to taxpayers' data, citing privacy concerns and constitutional safeguards, a report published late on Monday said. The provision, included in this year's finance bill, drew public backlash over alleged privacy violations. The committee said that current laws already allow the Kenya Revenue Authority (KRA) to access financial data with a court warrant, rendering the proposal unnecessary. "In light of these existing safeguards, the committee concluded that the proposed provision is both unnecessary and potentially unconstitutional," the report said. Finance Minister John Mbadi has defended the measure, saying it would help curb tax evasion, particularly by wealthy individuals exploiting legal protections to conceal financial information. Mbadi was not immediately available to comment on the committee's decision. President William Ruto's government, which took office in 2022, has been trying to increase tax collection to help keep up with growing debt repayments. Last year's finance bill was followed by deadly riots against tax increases. Mbadi has said the government will not impose new taxes or raise existing ones in this year's bill. The bill, however, aims to raise an extra 30 billion shillings ($233 million), mainly through boosting tax compliance. The provision is necessary to allow the KRA access to financial information belonging to businesses and individuals, to help its officials detect any tax evasion, the minister had said. The government is under pressure to avoid a repeat of unrest over revenue measures after last year's protests against proposed tax hikes led to over 50 deaths and forced Ruto to abandon plans to raise 346 billion shillings in taxes. Lawmakers are expected to vote on the bill before it is sent to Ruto for approval. ($1 = 128.9500 Kenyan shillings)
Zawya
24-04-2025
- Business
- Zawya
Kenyan Revenue Authority unveils the Electronic Rental Income Tax System
Nairobi: On 10th April 2025, the Kenya Revenue Authority (KRA) officially announced that it had unveiled the Electronic Rental Income Tax System (eRITS), touted as a landmark innovation designed to streamline rental income tax compliance in the country. According to Alex Mathini, Tax Partner at Bowmans in Kenya, "The eRITS is accessible through the Gava Connect and eCitizen platforms, which support real-time integration with KRA's digital services. "The platform is designed to enable seamless tax computation, filing and payment of monthly rental income tax, and reduce the administrative burden associated with tax compliance in the real estate sector," he explains. Pursuant to the press release from the KRA, the Rental Income Tax System (RITS) is a voluntary compliance tool tailored to support tax compliance by landlords, property owners and agents with residential rental income under the Monthly Rental Income (MRI) tax regime, which only applies to Kenyan residents. Mathini explains that the introduction of eRITS complements the existing MRI regime, which was introduced in 2016 for landlords earning rental income of between KES 288,000 and KES 15 million annually. Notably, the MRI tax rate was reduced from 10% to 7.5%, effective 1st January 2024. "With the rollout of eRITS, the KRA is leveraging technology to enhance revenue collection. While the use of eRITS is not mandatory, it would be ideal to adopt it as it eases compliance," he explains. Bowmans Tax Partner Andrew Oduor notes further that the KRA has yet to issue the step-by-step guidelines on the eRITS registration process. "However, once registered, taxpayers will be able to generate and submit monthly MRI tax returns through eRITS. These monthly returns are official and feed into the individual's or entity's overall tax returns, easing the person's annual income tax filings," Oduor says. Oduor notes that eRITS is only accessible via Gava Connect and eCitizen platform, meaning that users must have internet access to use the system. "This does pose a drawback since despite Kenya having made commendable efforts to improve internet connectivity, the quality and affordability of internet access still remain a challenge. Accordingly, while residential property owners may view eRITS as a welcome move towards simplifying compliance, its adoption may be hindered by limited access to reliable internet," he says. Oduor explains that the eCitizen platform has occasionally experienced downtimes during peak usage periods. "Such outages could hinder timely filing and result in compliance difficulties, particularly in the absence of alternative filing methods. The KRA may therefore consider setting up a USSD code for taxpayers who do not have internet connectivity to access the system. "It is noteworthy that the KRA has yet to issue guidance on procedures to follow in the event of system failures, highlighting the need for contingency planning as the platform continues to roll out," adds Oduor
Zawya
16-04-2025
- Business
- Zawya
Kenya lifts ban on stripping of Zanzibar-bound cargo
Mombasa port projects an increase in transshipment cargo after Kenya lifted the seven-year ban of stripping of cargo in containers at the port before onward delivery by dhows and barges to Zanzibar and Pemba. The Kenya Revenue Authority (KRA) announced reintroduction of stripping, which is destuffing containerised cargo, after putting in place measures to curb smuggling, where before cargo is diverted in the ocean and finds its way into the East African Community (EAC) market. The move is expected to cut the cost of container charges, considering that the boxes will be returned to the shipping line on time, since they will not be leaving the port as before. Millers Association's representative at the Mombasa port Naseeb Mbarak said the reintroduction of stripping would reduce the cost of transporting cargo to Zanzibar and Pemba by returning containers on time.'Smaller traders will also benefit out of this as they can now import in groups,' he said. Mombasa-based clearing and forwarding agent Roy Mwanthi said the two destinations are the main transshipment destinations for Mombasa and the move will increase cargo numbers.'Last year, Mombasa registered exceptional growth in transshipment traffic, which recorded 491,666 twenty-feet equivalent units (Teus), reflecting an extraordinary increase of 280,593 Teus and translating into 132.9 percent growth against 2023. With these numbers, stripping will surpass 500,000 units which will mean more Mombasa port revenues,' Mr Mwanthi said. In 2018, the KRA in a public notice banned the stripping of containers destined for Zanzibar and Pemba. Before the ban, cargo destined for Zanzibar was being redirected to ports closer to the destination, such as Dar es Salaam, Tanga, or Zanzibar itself under a different manifest. In November 2022, the Tanzania Revenue Authority (TRA) wrote to KRA requesting a review of the ban on stripping to facilitate their importers in Zanzibar and Pemba.'KRA reviewed the same and granted indulgence on the stripping of cargo to Zanzibar and Pemba under conditions. In this regard, the earlier public notice issued is hereby set aside in line with this communication,' said the notice by KRA. Before the ban, the volumes of cooking oil and other food stuff destined for Pemba and Zanzibar surpassed the consumption capacity of the two islands as a result of cargo diversion and smuggling. KRA also seized different products, including edible oil cleared at Old Port in the go-downs of Mombasa, emanating from cargo stripped at the port of Mombasa. To avert cargo diversion and control stripping, the KRA has prohibited changing the status of goods through manifest amendments. The taxman said goods from the port of Mombasa have to be entered under the Single Customs Territory Framework (SCT) in Zanzibar before they are allowed into the islands. Read: After Zanzibar, Kenya now folds shipping line'The shipments are to be cleared under SCT arrangement on duty paid basis and verified by TRA (Tanzania Revenue Authority) officers stationed in Mombasa before stripping and shipment. KRA enforcement to supervise stripping and loading of the cargo in the port before shipment,' read the notice dated April 8, 2025, and signed by customs officer Nicholas Ngeera. Mr Ngeera said KRA will continue to liaise with the Kenya Ports Authority (KPA) to ensure that standard operating procedures and best practices on transshipment are implemented to protect and facilitate legitimate business. Investigations by KRA and TRA show risks and challenges regarding transshipment cargo stripped at the port of Mombasa with increased cases of smuggling adversely Zanzibar islands and Pemba reported. KRA also flagged med prolonged risks posed by stripping of cargo at the Port of Mombasa. Last month, while in Mombasa, Zanzibar's Minister of State in the President's Office (Labour, Economy, and Investments), Sharif Ali Sharif, said delays in cargo delivery from Mombasa have historically caused shortages and price hikes in Zanzibar thus need to streamline transshipment process.'Our cargo from China and the Middle East is first offloaded in Mombasa but, due to a lack of reliable transshipment, it often takes weeks or even months to reach Zanzibar. This has contributed to price increase for essential goods,' he said. He said that the government had introduced tax exemptions and reductions on essential goods to keep prices reasonable. With stripping of cargo reintroduced, Zanzibar expects a smoother supply of goods and ensures food security and price stability. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
