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Kenya, November 13, 2026 - Kenya Revenue Authority Commissioner-General Adan Mohammed has called for deeper collaboration with the Institute of Certified Public Accountants of Kenya to strengthen financial integrity and improve tax compliance. For small businesses, the proposal could mean clearer guidance and fewer costly errors—or closer scrutiny of their records and tax affairs.
Mohammed made the call at the 43rd ICPAK Annual Seminar, saying structured engagement between KRA and the accounting profession could help address compliance challenges and build “a tax system that works for everyone.” The announcement came days after KRA met micro, small and medium enterprises, tax practitioners, county leaders and the business community in Machakos to discuss better cooperation.
KRA used the ICPAK seminar to signal a more active partnership with accountants and auditors. Mohammed said the authority recognised the critical role the profession plays in safeguarding financial integrity and improving tax compliance.
He proposed structured engagement and practical collaboration between KRA and ICPAK. The aim, according to KRA, is to address compliance challenges and create a tax system that works for all taxpayers.
The announcement followed a KRA Citizen Assembly in Machakos, where the authority met MSMEs, tax practitioners, county leaders and local business owners. KRA said the meeting was intended to identify ways the authority and businesses could work better together.
KRA is under pressure to expand revenue collection while reducing friction with taxpayers. It reported raising Sh1.010 trillion by the end of October 2026, surpassing the Sh1 trillion mark for the first time.
Small businesses are central to that challenge. Many lack in-house tax departments, dedicated finance teams or the technical capacity to interpret changing tax rules. They therefore rely heavily on accountants, bookkeepers and tax practitioners to prepare returns, maintain records and manage compliance.
KRA’s outreach to ICPAK reflects a recognition that tax compliance is not only a matter of enforcement. Accountants can help businesses keep accurate records, understand deductions, file returns correctly and avoid penalties that arise from avoidable mistakes.
The authority has also been strengthening its capacity to investigate tax crimes. Through the Kenya School of Revenue Administration and the Organisation for Economic Co-operation and Development, KRA has been building capacity in tax-crime investigation across Africa.
KRA has not yet published a detailed framework showing how the proposed collaboration with ICPAK will work. The authority has instead signalled an intention to pursue structured engagement and practical cooperation.
The Machakos meeting suggests that KRA is testing a more consultative approach. It brought together MSMEs, tax practitioners, county leaders and local businesses for an open discussion on improving cooperation.
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KRA is also implementing new tax measures that will increase the importance of professional advice. It has said all persons covered by the Minimum Top-Up Tax must notify the authority that they are within scope by November 30, 2026.
The Minimum Top-Up Tax is a tax designed to ensure that large or multinational groups pay a minimum level of income tax. It was introduced under Section 12G of the Income Tax Act and operationalised through the Income Tax (Minimum Top-Up Tax) Regulations, 2026.
For small businesses, the immediate impact is likely to be greater demand for professional tax advice. Accountants may need to help clients understand record-keeping requirements, VAT obligations, payroll taxes, digital-tax rules and the new Minimum Top-Up Tax.
If the partnership is designed around education and early support, it could reduce errors and penalties. Businesses may receive clearer guidance, better taxpayer education and more practical channels for resolving disputes.
But closer cooperation could also increase scrutiny. KRA may gain better access to professional networks, sector-specific compliance data and early warning signs of tax risks. Businesses with poor records, unexplained transactions or aggressive tax positions could face more questions.
The key issue will be implementation. A partnership that focuses on taxpayer education, simplified processes and clear dispute resolution could build trust. One that focuses mainly on enforcement could deepen fear among small businesses already struggling with cash flow, rising costs and complex compliance obligations.
Kenya’s tax system has long struggled with a narrow base, informal-sector compliance gaps and disputes over penalties and assessments. Small businesses often operate with limited accounting capacity, making them vulnerable to errors that can attract interest and penalties.
ICPAK regulates and represents certified public accountants in Kenya. Its members prepare financial statements, conduct audits, offer tax advice and help businesses meet statutory reporting obligations.
KRA’s engagement with the profession comes as the authority seeks to improve voluntary compliance. Voluntary compliance means taxpayers meet their obligations without needing enforcement action, such as audits, penalties or prosecution.
The authority’s recent outreach also reflects a broader effort to improve communication with businesses. In Machakos, KRA met MSMEs, tax practitioners and county leaders to discuss how the authority and businesses can work better together.