By Benadeta Mwaura - Reporter
Kenya, June 11, 2026 - The government is set to intensify tax reforms through the Kenya Revenue Authority (KRA) as it seeks to enhance revenue collection and strengthen fiscal sustainability amid rising budgetary pressures.
Treasury Cabinet Secretary John Mbadi outlined the measures while presenting the 2026/27 Budget in Parliament on June 11, 2026, saying the reforms are anchored on improving efficiency, simplifying tax systems, and expanding compliance through technology-driven solutions.
“To boost revenues, the government will continue to strengthen implementation of the national tax policy and medium-term revenue strategy, aimed at simplifying tax laws, rationalising tax expenditures, and creating a fair, predictable, and efficient tax system,” Mbadi said.
He noted that KRA has already intensified reforms aimed at modernising tax administration through digital innovation, improving compliance levels and enhancing service delivery to taxpayers across the country.
“Mr. Speaker, the Kenya Revenue Authority has intensified reforms to modernize tax administration, enhance compliance, and improve service delivery through technology and innovation,” he said.
Mbadi said a key pillar of the reforms will be the rollout of a fully integrated digital tax system designed to improve efficiency and enable real-time monitoring of transactions across the economy.
The system will include expanded electronic invoicing, enhanced point-of-sale integration, mobile-based tax services, and upgraded domestic tax platforms intended to reduce loopholes and improve data accuracy.
To further curb tax evasion and illicit trade, the government plans to introduce device registration systems and strengthen inter-agency data sharing, particularly at border points where smuggling and under-declaration remain persistent challenges.
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Mbadi also highlighted efforts to simplify taxpayer processes through pre-filled tax returns, expanded digital payment systems, and enhanced online services aimed at reducing compliance costs and administrative burdens on businesses and individuals.
In addition, taxpayer engagement will be strengthened through digital support tools and outreach programmes such as UshuruGPT, omni-channel customer service platforms, Utuma kwa wote, and UshuruMashinani, all designed to improve accessibility and responsiveness.
On tax performance, Mbadi reported a modest increase in compliance levels, noting that the number of active taxpayers has continued to rise over the past year.
“As a result, the active tax payers increased by 82,000 to over 6.6 million taxpayers as of March 2026 from 6.5 million as at March 2025, reflecting a growing voluntary compliance and improved tax compliance,” he said.
The Treasury says the continued expansion of the taxpayer base reflects the impact of ongoing digital reforms and enforcement measures aimed at widening the tax net without significantly increasing the burden on existing taxpayers.
As Kenya pushes forward with fiscal consolidation efforts, the success of these reforms will be central to improving domestic revenue mobilisation and reducing reliance on borrowing to finance the national budget.