The Kenya Revenue Authority (KRA)’s vigorous pursuit of tax dues has put it at odds with Members of Parliament (MPs), who want the agency to soften its approach despite pressure to raise more revenue.
The aggressive stance saw MPs deny the taxman a request to change its name from the KRA to Kenya Revenue Service (KRS) as part of a planned rebrand, according to its board chairman, Ndiritu Muriithi.
The freeze on the name change is intended to give the taxman time to improve its relationship with taxpayers.
The Tax Procedures Act, strengthened in recent years, empowers the KRA to pursue taxpayers aggressively, including by serving demand notices and freezing bank accounts.
“There was a proposal (to change the name of KRA), but when the proposal went to Parliament, it was not passed,” said Mr Muriithi.
“In the debate, Members of Parliament said that it was not about the change of name but that a change in the culture of the organisation was needed to make KRA a service. I think that this is fair.”
Walking the talk
KRA first mulled a name change in 2021 as part of a rebranding strategy that would see the word ‘Authority’ dropped due to its connotations with command.
Former KRA chairman Francis Muthaura noted that KRA works for the people, hence the need for a rebrand that would align the role of the taxman with service delivery.
“The term ‘Authority’ sometimes has connotations of command. Commanding is not the real role of KRA. We are the servants of the people, who are the taxpayers,” he said.
According to the general provisions relating to administrative penalties and offences, when a person commits an act or omission liable under a tax law, the KRA Commissioner is expected to either demand the penalty or prosecute the offence.
The KRA Commissioner notifies individuals in writing about the penalty demand, setting out the amount and the payment deadline.
The taxman says it is now making improvements to better its relationship with taxpayers as part of efforts to become a service even as it eyes a new attempt at the name change.
“It’s about being customer-centric and actually walking the talk, the language of our letters, the way we communicate with our customers, and how we resolve problems,” added Mr Muriithi.
“Change is happening as we speak, and we are taking stock of where our culture is.”
Revenue targets
KRA remains under pressure to raise higher revenues from taxes by sealing loopholes that have allowed for tax evasion and avoidance, and expanding the tax base to hard-to-tax sectors such as agriculture and the digital economy.
KRA collected Sh2.42 trillion from taxes in the fiscal year ended June 2025, representing a growth rate of 5.7 percent from Sh2.2 trillion previously, as per data from the National Treasury.
The collections were, however, Sh76 billion below target as several tax heads underperformed estimates, including income tax, excise duty, and investment revenue.
KRA is expected to ramp up its collection to at least Sh2.75 trillion in the fiscal year to June 2026 and Sh2.99 trillion in the 2026/27 period.
The taxman’s citizens’ service delivery charter dictates that it treats customers with courtesy and respect, while proactively in responding to their problems.
