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Mbadi blames revenue shortfall on KRA's outdated tax systems

Treasury CS John Mbadi said oudated KRA systems are some of the challenges why the taxman is not collecting revenue commensurate to the size of Kenya’s economy. [File, Standard]

National Treasury and Economic Planning Cabinet Secretary John Mbadi has laid bare the challenges facing revenue collection, detailing that some of the taxman’s systems are not working optimally.

The CS, who was speaking during the ongoing Kenya Revenue Authority (KRA) Summit 2024 in Nairobi, yesterday, listed iTax and the iCMS (Integrated Customs Management System), as some of the systems that are either outdated or not working as they should.

While KRA’s revenue collection has been increasing progressively in the last five years, hitting Sh2.4 trillion in the 2023/24 financial year, out of the target of Sh2.5 trillion, the CS noted that there is more potential in the economy citing VAT as one of the areas.

He said these systems are some of the challenges why the taxman is not collecting revenue commensurate to the size of Kenya’s economy.

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