The Kenya Revenue Authority (KRA) is not a popular entity in Kenyan society. The mean-spirited taxman often perceived as a symbol of oppression, unfairness, and the government's insatiable greed.
This image is not entirely undeserved. Take the case of small and medium-sized business owners. KRA has become a nightmare for them, imposing excessive and repetitive levies that can sometimes exceed their profit margins.
The problem is compounded by the lack of clear and consistent guidelines. Business owners are often confused about what to pay, when to pay, and how to file their returns. And imagine their frustration when they are penalized for innocent mistakes. I recently spoke to a small-scale trader who told me how he was fined 100,000 Kenyan shillings for filing his VAT returns one day late. His profits for the entire year amounted to a mere 200,000 shillings.
But KRA is not only making life difficult for businesses. Its tentacles have also reached into the lives of ordinary Kenyans. Dozens of civilians have been jailed due to their inability to pay taxes. And many more live everyday lives with the looming fear of arrest and imprisonment.
The tax burden in Kenya is excessive, regressive, and inequitable. The rich and the powerful often find ways to evade or avoid taxes, while the poor and middle class bear the brunt of the burden.
The government needs to revisit its tax policies and find a way to make them fairer and more equitable. To do this, it should start by simplifying taxation rules and procedures, reducing the number of taxes, and eliminating tax exemptions for the rich and the corporations.
It is also important to improve the efficiency of tax collection by cracking down on tax evasion and avoidance. This will require increasing the capacity of KRA, streamlining its operations, and making it more accountable.
I have no doubt that KRA is essential for the development of our country. However, it is time we demanded a tax system that is fair, transparent, and efficient. A tax system that does not drive businesses to the ground, send innocent Kenyans to jail, or create an atmosphere of fear and uncertainty.
Only then will we be able to say that KRA is a welcome guest in our lives, not a dreaded monster.
Call to action: Join the movement for tax justice. Sign the petition, donate to the cause, and start a conversation about tax reform in Kenya.