In a bold step toward creating a more inclusive and predictable tax ecosystem, the Kenya Revenue Authority (KRA) has entered into a formal collaboration with the Kenya Private Sector Alliance (KEPSA) to strengthen voluntary tax compliance in Kenya.
The announcement followed a high-level engagement between the two bodies, held on Thursday, June 12, 2025. According to a joint statement, the meeting emphasized the need for structured public-private dialogue to address sector-specific tax challenges, expand Kenya’s tax base, and build long-term trust between businesses and regulators.
Working Together to Build a Tax-Positive Business Environment
At the heart of the agreement is the formation of joint technical working groups tasked with tackling complex tax issues that hinder compliance. The groups will focus on:
- Simplifying tax procedures for SMEs
- Designing targeted taxpayer education programs
- Crafting policy recommendations for fairer tax administration
To ensure follow-through, the two entities committed to quarterly reviews and a shared monitoring framework that will evaluate progress on agreed actions.
“Through structured engagement and shared insights, we can co-create solutions that ease compliance, unlock new revenue streams, and ultimately drive economic growth,” said KRA board chairperson Ndiritu Muriithi.
His sentiments were echoed by KEPSA Chairman Dr Jas Bedi, who described the collaboration as a “practical approach” to modern tax governance.
“We appreciate KRA’s openness to continuous dialogue. This engagement ensures that tax reforms are practical, predictable, and aligned with the realities businesses face on the ground,” Bedi stated.
Laying the Groundwork for a Digital and Inclusive Tax Future
The next joint KEPSA-KRA forum, slated for later this year, is expected to address taxation in the digital economy, customs reforms, and investment incentives for key economic sectors. These issues remain critical as Kenya navigates post-pandemic recovery and seeks to reposition itself as a regional investment hub.
In line with its long-term goals, KRA aims to increase the number of active taxpayers from 9 million to 13 million by 2027. The agency has identified collaboration, trust-building, and stakeholder engagement as essential pillars in achieving this expansion.
Support for the Tax Amnesty Initiative
KEPSA also praised KRA’s recent tax amnesty program, which offered businesses and individuals a fresh start to regularize their tax status without the burden of accumulated penalties.
The private sector body pledged to mobilize its membership for outreach and policy feedback, further strengthening the reform agenda through two-way communication.
“We remain committed to partnering with government to ensure Kenya’s fiscal policy supports business resilience, job creation, and sustainable development,” said a KEPSA official familiar with the roadmap.
The renewed partnership between KRA and KEPSA signals a turning point in Kenya’s tax landscape. By promoting voluntary tax compliance in Kenya through dialogue and practical reforms, both institutions are laying the foundation for a fairer, broader, and more efficient tax system. As businesses respond to a more predictable environment, Kenya inches closer to achieving its fiscal and development goals.
Read Also: KRA Explains How Business Owners Can Exit VAT Special Table & Stay Compliant
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