KRA is set to roll-out an online chatbot that will support MSMEs seeking tax information and services from the Authority, KRA acting Commissioner, Micro and Small Taxpayers Department has revealed. 

Speaking during an MSME roundtable held in Nairobi, KRA acting Commissioner, Micro and Small Taxpayers Department, Mr. George Obell said that chatbot will assist in answering the many queries that micro and small taxpayers may have regarding tax compliance.

The Commissioner said that this is among various initiatives that KRA is introducing to enhance customer service and increase tax knowledge and it will also complement the taxpayer sensitisation programme that KRA is currently implementing countrywide.

Mr. Obell added that the KRA is cognisant of the vital role that MSMEs play in driving economic growth, adding that KRA is focused on simplifying tax processes for MSMEs that will increase their contribution to overall revenue collection.

“KRA is already building a tax system that will simplify registration, filing, and payment of taxation by MSMEs. We are committed to facilitating MSMEs to voluntarily meet their tax obligations while creating an equitable tax system for all taxpayers.” said Mr. Obell.

According to data from the Kenya National Bureau of Statistics (KNBS) and the Micro and Small Enterprises Authority (MSEA), MSMEs contribute about 40 percent of Kenya’s GDP. Some estimates go as high as 50 percent, depending on how informal businesses are counted.

Furthermore, MSMEs are estimated to employ around 80–90 percent of the total labor force in Kenya, especially in the informal sector. Many of these are in agriculture, trade, manufacturing, and services.

These enterprises drive innovation, create jobs, and serve as a crucial link between rural and urban economic activities.

However, despite their critical role, many MSMEs have struggled with complex tax processes, limited access to advisory services, and an often opaque compliance environment.

In his remarks during the roundtable, Micro and Small Enterprises Authority (MSEA) Chairman, James Mureu lauded KRA for setting up the Micro and Small Taxpayers Department, saying it has given MSMEs in Kenya a stronger sense of recognition and affirms the value of MSMEs within the national tax framework.

“We see KRA as a strategic partner and enabler we can bank on in our journey towards supporting MSMEs. We need to have frank dialogue and continued collaboration to design policies that unlock the potential of emerging enterprises to contribute to Kenya’s economic prosperity.”, said the MSEA Chairman.

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