The Kenya Revenue Authority (KRA) is seeking partnerships with counties with the aim of growing collections through enhancing, commissioner of domestic tax Benson Korongo has said.
The collaboration would also optimise the regional governments’ revenue sources – largely property rates, land rent, single Business Permits and entertainment fees. It will start with a few counties whose revenue collections are impressive.
KRA-owned Kenya School of Revenue Administration has developed a curriculum for training county revenue staff.
Mr Korongo says there is a need for the counties to integrate revenue collection systems with those of other national government agencies.
“This will facilitate counter checking taxpayer profiles against information held in other databases,” he told the three-day third Annual Tax Summit which ended in Nairobi on Friday.
The Treasury has recommended six counties to design a contract with the KRA to collect revenue on their behalf.
These counties in Draft National Policy to Support Enhancement of County Governments Own-Source Revenue are Nairobi, Mombasa, Kisumu, Nakuru, Kiambu, Narok, Machakos and Nyeri.
“It would be easier for the KRA to collect revenue from more urbanised counties with large formal sectors; this would allow KRA to fully apply its professional skills, personnel and technical resources,” the Treasury says in the draft report.
Kiambu has a Memorandum of Understanding with the tax agency to collect property rates, land rent and single business permits, while Narok still collects park entry fees through KAPS, a private firm.
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