President William Ruto has said all Kenyans above the age of 18 should have the Kenya Revenue Authority (KRA) Personal Identification Number (PIN).
This is in line with the Government’s goal to expand the tax collection bracket to raise Sh3 trillion by the end of the fiscal year.
Ruto was speaking during the KRA’s Tax Day event in Nairobi.
“Every Kenyan with an ID should have a PIN number. Technology, and a considerate, fair and professional mobilisation, will do the job quite well,” Ruto said.
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While noting only 7 million people have KRA PIN numbers, Ruto said 30 million customers are registered on the country’s leading telco Safaricom.
He asked the taxman to follow Safaricom MPESA’s success to
“There are only 7 million people with KRA pin numbers. At the same time, in the same economy, Safaricom’s MPESA has 30 million registered customers, transacting billions daily,” the president said.
“The fact that this opportunity remains unclear to KRA demonstrates why radical changes are necessary. Safaricom, a telco, has registered more people than KRA, a powerful state organisation. It is very clear that the magic lies in technology and strategy, not power and resources.”
The president also said the country’s GDP has risen to Sh 12 trillion this year even though KRA has only raised about 14 per cent of revenue this year.
Ruto challenged the taxman to raise an additional Sh3 trillion by the end of the next fiscal year before doubling the current collection in five years.
“The consequences are painful to contemplate. Our GDP has risen to Sh12 trillion, yet KRA only raised about 14 per cent of it in revenues last year. In the past KRA was able to raise 18 per cent of GDP,” Ruto said.
“If we collect the same target today then would have raised an extra Sh400 billion. I expect KRA to raise Sh3 trillion by the end of the next financial year and to double the current collection in five years.”
This comes as KRA projects to collect Sh2.072 trillion by the end of the fiscal year.