When the Kenya Revenue Authority (KRA) was established in 1995, the adoption of technology was still alien and the use of manual tax filing systems was the norm. 

In the mid-1990s, though Kenya, the crown jewel of East Africa's trade and business was a relatively small economy was small, the authority's collection averaged KES122 billion, as the taxman grappled with porous checks that saw a significant number of players dodge the system.

However, through its 30-year journey, KRA has evolved into a tech-based tax monitoring and compliance organisation, with innovations such as as eTIMS and GavaConnect API boosting annual collection to KES2.571 trillion reported in the FY 2024/25. This was a 6.8 percent increase from FY2023/24.

As the authority marks 30 years since its establishment, Commissioner-General Humphrey Wattanga says plans are underway to transform KRA into a premier service entity.

MR. Wattanga says the organization will expand its digital services offering, and finalize restructuring aimed at creating a more focused and efficient revenue mobilization strategy.

“In the 1990s, tax administration was a challenge, with multiple queues, duplicative forms, and unofficial ‘agents’ promising faster services for a fee. Our journey to modernization began gradually and has now blossomed into an ambitious strategic vision focused on tax simplification, technology-driven compliance, and tax base expansion,” Mr Wattanga said during the 30 years’ celebration event held today at Times Tower, Nairobi, on Monday.

The Commissioner-General revealed plans to expand KRA's digital innovations, including the enterprise Application Programming Interface (API) platform, Gava Connect, which has been developed in collaboration with young Kenyan tech innovators.

This platform aims to create a seamless, passive, and convenient compliance experience by leveraging artificial intelligence, data analytics, and machine learning.

Mr Wattanga traced KRA collection milestones since its inception in 1995 crediting the growth to continued adoption of technology. 

From an annual collection of KES122.066 billion in the mid-90s, KRA surpassed the KES1 trillion milestone in the fiscal year 2014/2015, collecting KES1.069 trillion. 

By FY 2021/2022, revenues had more than doubled to KES2.031 trillion despite challenges posed by the COVID-19 pandemic, and in the current fiscal year, KRA has already surpassed KES2.5 trillion in collections.

At the same time, Treasury CS John Mbadi reiterated the government’s commitment to supporting KRA’s critical role in national development. 

“I have discussed with the Chairman and the Commissioner-General, and we will soon allocate additional funding to enable KRA to enhance its revenue collection efforts. This support is vital as we continue to drive Kenya’s economic growth and realize our vision for a prosperous and self-reliant nation."

Highlighting KRA’s contribution to Kenya’s fiscal stability and economic resilience, CS Mbadi noted that since 1995, KRA has been instrumental in enabling the government to invest in education, healthcare, national security, and infrastructure, which are the pillars that sustain our economy and improve the lives of Kenyans.

KRA’s Board Chairman Ndiritu Muriithi lauded the partnership between KRA staff and Kenyan taxpayers, calling the 30-year milestone a testament to their dedication.

“KRA’s successes would not have been possible without the hard work of our staff, the compliance of the public, and the support of development partners both locally and internationally,” he said.

Technology has empowered KRA to identify trends, enhance compliance, improve risk profiling, and forecast revenue with greater precision.

Recent innovations such as eTIMS the GavaConnect API have reinforced KRA’s reputation as a leader in digital transformation, simplifying taxpayer engagement and securing government revenues. 

KRA’s ongoing digital journey is aligned with the OECD’s Tax Administration 3.0 model, which envisions a taxpayer-centric ecosystem where compliance is seamlessly integrated into daily life and business operations.

KRA - Key Milestones

• 1995–1996: Integration of Revenue Departments

•  2003 - 2004: Formation of key departments e.g., Investigations and Enforcement Department, to support and enhance revenue collection.

•  2003: KRA embraces technology with the launch of KRA Enterprise Integrated System Architecture (KREISA) laying the foundation for the Business Automation Project, which delivered integrated systems, a single taxpayer view, and digital platforms.

• 2004 - 2005: Formation of Domestic Taxes Department for unified income tax and VAT, allowing a single taxpayer view.

• 2005: Introduction of SIMBA system to replace the BOFFIN system and fully automate customs processes in line with
international trade standards. This year, the taxman introduced Electronic Tax Registers (ETR), too.

• 2013 - 2014: Development of itax revolutionised tax filing and payments transforming how taxpayers file and paid their taxes.

• 2013: Electronic Cargo Tracking System (RECTS) deployed.

• 2015: Excise Goods Management System introduced to secure excisable goods supply chains, ensuring better tracking and accountability.

• 2016 - 2018: Data Analytics enhanced tax compliance by introducing risk-based audits and third-party data matching, improving efficiency and compliance.

• 2015: Introduction of iCMS, a comprehensive customs system integrating all trade stakeholders to streamline clearance and boost efficiency in cross border trade. This year also marked introduction of Alternative Tax Dispute Resolution (ADR), providing taxpayers with an efficient avenue to resolve tax disputes. 

• 2016: Introduction of Customer Relationship Management (CRM) system improving taxpayer engagement across all touchpoints. One Stop Border Posts (OSBPs) and Single Customs Territory (SCT) under EAC were also intruduced this year, cutting cargo clearance time and enhancing cross-border efficiency.

• 2023: Introduced eTIMS digital invoicing systems enhancing compliance and revenue collection.

• 2024: Digital transformation driven by an enterprise Application Programming Interface (API) platform known as GavaConnect that enables collaboration with IT developers to co-create simplified tax solutions that enhance the overall compliance experience. GavaConnect empowers businesses and taxpayers to integrate seamlessly and securely with KRA's digital ecosystem, driving tax simplification and voluntary compliance.

• 2025: Realignment of internal operations with a focus on technology modernization, and targeted compliance support framework for Micro Small & Medium Enterprises (MSMEs) and emerging economies.
 

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