The Kenya Revenue Authority (KRA) is taking significant steps to ease the compliance burden on businesses, particularly in relation to the Pay As You Earn (PAYE) tax system. Speaking at a stakeholder engagement in Nyandarua County, KRA Commissioner General Humphrey Wattanga revealed that the authority is committed to reducing the administrative complexities that often deter compliance, especially for small and medium-sized enterprises (SMEs).
Wattanga emphasized that one of the primary objectives is to make the PAYE return system more user-friendly. “The complexities of PAYE returns often create administrative burdens and discourage compliance. Our aim is to simplify this process, making it more user-friendly for all employers, including Micro, Small, and Medium Enterprises (MSMEs),” said Wattanga.
The new system will offer a variety of filing options to cater to businesses of all sizes and technological capabilities. These options will include an Excel-based return, a mobile application, a web-based platform, and integration with Application Programming Interfaces (APIs). The goal is to provide accessible and convenient filing methods for all businesses, ensuring that they can meet their tax obligations more efficiently and with less hassle.
In addition to simplifying PAYE filing, KRA also urged the business community in Nyandarua County to actively engage in fighting illicit trade, particularly counterfeit alcohol. This collaboration is seen as crucial in fostering a fair and competitive business environment.
KRA’s efforts to engage stakeholders are part of a broader strategy aimed at building trust with the business community. Nderitu Mureithi, the KRA Board Chairman, highlighted the importance of stakeholder engagement, stating, “We are actively engaging stakeholders to understand their challenges and identify solutions. Our open-door policy ensures that taxpayers are heard and supported in meeting compliance requirements.”
This ongoing nationwide initiative by KRA is designed to boost compliance, enhance service delivery, and promote a level playing field for all enterprises. The simplified PAYE system is expected to significantly ease the tax filing process, benefiting businesses across the country.
