Business News Kenya

Monday 4 February 2013

Blow to counties as KRA to be sole revenue collector



The National Economic and Social Council has proposed that the Kenya Revenue Authority remain the sole collector of government revenues, even as the country devolves power to the county governments.

During its 32nd full council meeting, the council said that county governments should only stick to management activities and instead called for the government to empower KRA with more resources to collect all taxes.

“The government should restructure and enhance the capacity of KRA in order to make it the single revenue collector,” said council’s chairman, Mr Vimal Shah. He was accompanied by Head of the Civil Service Francis Kimemia.

Currently the Constitution empowers counties to collect property and entertainment taxes; they can also impose charges (utility taxes) for their services such as water supply, garbage collection among others.
Expertise

The KRA Commissioner General has already indicated that they will offer their revenue collection services to counties like Nairobi given that they have the expertise and know-how to collect and impose taxes.

He said that the authority had started sending out some of its officers to various counties in preparation for their new governments.

Finance minister Njeru Githae has seconded the proposal and urged that the revenue collecting responsibility remain the sole function of KRA, even calling for it to be given more resources to enable it to undertake the bigger responsibility as counties come into effect on March 4.

Source: Daily Nation