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Kenya is gearing up to monitor its mobile money industry, which is growing steadily in a bid to catch tax evaders. These forms of transactions are being used to escape tax liability by tax manipulators and alleged government agencies. The East African country is also proposing to limit its borrowing to boost its finances and tax collections over 17% of the GDP.
Kenya is gearing up to monitor its mobile money industry, which is growing steadily in a bid to catch tax evaders. This form of transaction is being used to escape tax liability by tax manipulators and alleged government agencies. The East African country is also proposing to limit its borrowing to boost its finances and tax collections over 17% of the GDP.
President William Ruto’s government has been trapped by an indebted economy characterised by high public debts mainly due to heavy borrowings to finance infrastructure projects by the previous leadership. The Kenya Revenue Authority (KRA) now plans to integrate its system with those of mobile phone operators’ financials to catch tax evaders and at the same time tap on revenue to ensure its growth by a meaty 17.8% of the GDP by the 2023-24 financial year. It will translate into a collection of US$32.2 billion.
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The new dispensation is toying with the idea of a national Identification card to have the KRA pins. The new government also said that it would reduce its foreign borrowing target for 2023-24 by a percentage point of GDP, and the domestic borrowing target by just over a percentage point of GDP.
