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Shipping & Logistics

More Kenya-Ethiopia one-stop border points to seal tax loopholes

Ethiopian Prime Minister Abiy Ahmed
Ethiopian Prime Minister Abiy Ahmed. FILE PHOTO | NMG 

Kenya plans to develop more One Stop Border Point (OSBP) at its border with Ethiopia to ensure tax compliance and improve revenue.

Acting Cabinet Secretary for National Treasury and Planning Ukur Yatani said the new border points will also foster trade and hence help in efforts to increase revenue collection.

“The government shall establish more OSBPs along the common border with Ethiopia to facilitate trade and ensure collection of more revenue,” he said.

Mr Yatani (right) directed the taxman to conduct more public awareness campaigns to enable communities living at the border have better understanding of taxation and the need for compliance.

“This will ensure that any misunderstandings that may be existing between KRA and stakeholders are solved amicably hence boosting compliance and resulting to more revenue for the government,” he noted.

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The Kenya Revenue Authority (KRA) chairman Francis Muthaura said the taxman is ready to play a key role in facilitating revenue collection and enhancing compliance.

“KRA and the business community in this region need to work together... KRA is obliged to provide a conducive environment for business to thrive,” said Mr Muthaura.

However, Mr Yatani decried underutilisation of the newly constructed Moyale OSBP.

“We should see more trade volumes passing through the OSBP at Moyale. Unfortunately, we are not witnessing this,” said the CS who was accompanied by Mr Muthaura, KRA Commissioners and Interior ministry officials in a tour of the Moyale OSBP in Marsabit County on Saturday.

He said the government is keen on working towards full implementation of an agreement on free trade earlier agreed between the two countries.

He directed KRA to convene regular multi-agency meetings to address issues hampering utilisation of the OSBP.

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