Globalization, digital commerce and the emergence of modern technologies have fundamentally altered the way economies function. Digital platforms are redefining trade, with multinational corporations now operating seamlessly across borders and small enterprises increasingly leveraging fintech solutions to grow. These changes present both opportunities and challenges for Tax Authorities who are tasked with mobilizing revenue fairly and efficiently.

In response, many tax administrations are adopting the OECD’s Tax Administration 3.0 model, a framework that envisions taxation as an integrated, seamless part of everyday life and business. Rather than relying on manual reporting and backdated audits, compliance is built directly into digital systems; from e-commerce platforms to financial systems. Countries like Australia and Singapore are integrating tax obligations into business software, making compliance almost invisible to the taxpayer. Closer home, Rwanda and South Africa have embraced digital reforms in tax administration that have significantly improved efficiency and compliance, proving that technology-driven reforms can work in contexts similar to Kenya’s.

At Kenya Revenue Authority (KRA), we recognize that the future of tax administration lies in technology-enabled, taxpayer-centric systems that not only increase efficiency but also build trust. KRA has embarked on an ambitious digital transformation agenda, anchored on the principles of the Tax Administration 3.0, and aligned with our 9th Corporate Plan. One (1) of our flagship innovations is GavaConnect, an enterprise Application Programming Interface (API) platform that allows developers into the KRA ecosystem and to co-create solutions.

Already, over 1,000 developers are already using more than sixteen (16) APIs to build applications that simplify services such as Tax Compliance Certificate checks, Personal Identification Number (PIN) validation, and e-Slip generation. By embedding compliance tools into systems Kenyans already use, we are moving closer to the “compliance-by-design” future as envisioned by OECD. Further, we continue to explore our key systems iTax and integrated Customs Management System (iCMS) for further enhancements, including moving to cloud for more capacity and scalability.

Internally, we have realigned our operations to champion this transformation, with a focus on technology and modernization to drive reforms in artificial intelligence, machine learning and data analytics. At the same time, we have reorganized our compliance support framework to deliver targeted solutions, digital education, and simplified filing systems to the Micro Small & Medium Enterprises (MSMEs) and emerging economies. Innovations such as AI-powered chatbots on WhatsApp, KRA mobile apps and Unstructured Supplementary Service Data (USSD) extensions are already helping small traders access tax information instantly, at their convenience. These among other investments will not only enhance compliance monitoring but also improve taxpayer experience by offering real-time support and personalized solution.

Building trust is just as important as using technology. Sustainable revenue collection relies on fairness, transparency, and respect. We are improving service delivery, strengthening integrity across our systems, and ensuring taxpayers are treated with dignity. By promoting open engagement and embedding ethics in our operations, we want taxation to be seen as a shared national responsibility.

For Kenya, the benefits of a digitally transformed tax system go beyond revenue mobilization. By making compliance easier and more transparent, we envisage a business environment that attracts investment, fosters innovation, and supports the formalization of enterprises. This enhances Kenya’s competitiveness in the regional and global marketplace, positions the country as a leader in Africa’s digital economy, and ensures that our tax system becomes a trusted enabler of sustainable development. In short, every step KRA takes in modernizing tax administration is a step towards a stronger, fairer, and more prosperous Kenya.

As globalization accelerates and digital innovations reshape economies, Kenya must lead and not follow. As KRA celebrates thirty (30) years of existence, we are reimagining tax administration for the next thirty (30) years, building on global best practice while tailoring solutions to our unique national context. With strong partnerships, robust governance, and a renewed focus on innovation, we believe that KRA will not only meet its mandate but also inspire trust, drive growth and empower Kenya’s future.

The Writer is the Commissioner General of the Kenya Revenue Authority

25 total views, 25 views today