KRA strengthens ties with MSMEs with plans to simplify PAYE returns

Kenya Revenue Authority (KRA) has reiterated its dedication to fostering a business-friendly environment by simplifying tax processes and encouraging voluntary compliance.

During a stakeholder engagement with the Nyandarua Business community in Nyahururu town, the KRA leadership assured entrepreneurs of their continued support in streamlining tax procedures to enhance business efficiency.

KRA Board Chairman Ndiritu Muriithi, and Commissioner General Humphrey Wattanga led the discussions emphasising its strategic efforts to reduce the cost of compliance through innovative solutions.

They highlighted ongoing initiatives aimed at simplifying tax return processes, including the Pay as You Earn (PAYE) filing system.

“The complexities of PAYE returns often create administrative burdens and discourage compliance. We aim to simplify this process, making it more user-friendly for all employers, including Micro, Small, and Medium Enterprises (MSMEs),” Wattanga said.

Once fully implemented, the simplified PAYE return system will offer multiple filing options, including an Excel-based return, a mobile application, a web-based platform, and API integration, ensuring accessibility and convenience for all businesses.

During the engagement, KRA also called on business communities to collaborate in fighting illicit trade, particularly counterfeit alcohol, to create a level playing field for enterprises.

Muriithi urged businesses to provide valuable feedback to help KRA refine its services and improve operational efficiency.

“We are actively engaging stakeholders to understand their challenges and identify solutions. Our open-door policy ensures that taxpayers are heard and supported in meeting compliance requirements,” he stated.

The Micro and Small Enterprise Authority (MSEA) Board Chairman James Mureu commended KRA for prioritising MSMEs in its engagement efforts.

He noted that the recent establishment of a dedicated department to address MSME concerns is a significant milestone in resolving historical tax challenges.

“We are on the right track. It is encouraging to see KRA working closely with MSMEs, listening to their concerns, and taking steps to create a conducive business environment,” Mureu said.

He further urged KRA to balance stakeholder engagement with the swift implementation of solutions.

KRA’s ongoing leadership of countrywide stakeholder engagements is part of its broader strategy to promote compliance, build trust with the business community, and improve service delivery.

The Authority said it remains committed to fostering an efficient tax system that supports business growth while ensuring compliance with tax regulations.