Hello and welcome to the Money Weekly Newsletter, where we are covering KRA’s plan to introduce dual tax assessment.

But first, a word from Username SACCO.

Sponsored Content

Are you looking to become a homeowner just minutes from Nairobi?

Consider Username Properties’ 1/8-acre plots at Imperial Gardens in Thigio, Kikuyu, going for Ksh1,299,000.

Located just 30 minutes from Westlands, the development offers a convenient location for those who want to live near the city while enjoying a quieter environment.

Apply now.

KRA To Introduce Dual Tax Assessment

The Kenya Revenue Authority (KRA) has unveiled plans to introduce a dual tax assessment system that would grant its commissioners the authority to assess the tax payable by PIN holders.

According to the authority, the move is aimed at enhancing tax compliance, particularly among non-salaried Kenyans in the informal sector who are often accused of underreporting their incomes.

At the same time, a significant number of registered taxpayers are not meeting their obligations. KRA estimates show that out of 20.2 million registered PIN holders, less than half are actively paying taxes, resulting in a revenue gap of at least Ksh982 billion.

Currently, Kenya operates on a self-assessment system, where taxpayers declare their income and calculate the taxes owed independently.

Under the proposed dual assessment regime, this system will be complemented by commissioner-led evaluations, with the goal of simplifying tax compliance and boosting revenue collection.

“We are looking at a dual assessment regime in future so that, in addition to self-assessment, we can support taxpayers through commissioner-led assessments, making it easier for them to comply,” said KRA’s Commissioner for Micro and Small Taxpayers, George Obell.

The largest revenue gap is in personal income tax, where collections account for just 2.5% of the estimated Ksh500 billion potential. While Value Added Tax (VAT) performs relatively better, it still captures only about 60% of its full capacity.

Rental income tax and corporate tax collections also fall significantly short of their respective targets.

Amid these persistent shortfalls, the KRA Board has opted not to renew the contract of Commissioner General Humphrey Wattanga, who has since proceeded on terminal leave.

In the interim, Lillian Nyawanda, the Commissioner for Customs and Border Control, has been appointed as Acting Commissioner General, pending a competitive recruitment process.

Here is a quick recap of the top news stories for the week:

• Uganda declined Kenya’s request to access its fuel reserves stored within the Kenya Pipeline Company network. The request was made ahead of the Easter festivities, when the government had anticipated a possible shortage. This prompted the government to plan the importation of the controversial Ksh11 billion worth of fuel.

• According to top energy officials who were arrested over the importation of the fuel, the move was based on recommendations from the National Security Council Committee, which was chaired by the President’s Chief of Staff. The affected officials include former Petroleum PS Mohamed Liban, ex-Kenya Pipeline Company MD Joe Sang, and former EPRA DG Daniel Kiptoo.

• Following the arrest of the officials, the government ordered the removal of the fuel products from the Kenyan market. In response, oil marketers have stated that the recalled Ksh11.8 billion petrol cargo cannot be removed from the Kenya Pipeline Company system because it has already been blended with existing stocks by grade, making it impossible to isolate specific shipments.

Catch Up on More News and Money Tips

MONEY254 #MONEYTOK

KRA Wants Power to Estimate Taxes for Non-Salaried Kenyans

KRA could soon start estimating how much tax you owe, even if you are unemployed or don’t have a salary.

This move targets informal sector earners and small businesses as the Kenya Revenue Authority looks to close a massive tax gap and improve compliance. With stricter systems like eTIMS, even cash-based businesses may no longer remain “invisible” to the tax system.

In this video, we show what it could mean to Kenyans without a salary.

@money254hq

𝐊𝐑𝐀 𝐖𝐚𝐧𝐭𝐬 𝐏𝐨𝐰𝐞𝐫 𝐭𝐨 𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞 𝐓𝐚𝐱𝐞𝐬 𝐟𝐨𝐫 𝐍𝐨𝐧-𝐒𝐚𝐥𝐚𝐫𝐢𝐞𝐝 𝐊𝐞𝐧𝐲𝐚𝐧𝐬 KRA could soon start estimating how much tax you owe even if you are unemployed... See more

That’s a wrap for this week’s Money Weekly!

Remember that we can help you compare over 300 loans, savings accounts, current accounts, and more on our website if you’re thinking about your next product.