• President William Ruto’s administration announced plans to integrate mobile money payment systems with tax registers
• Government Senior Economic Advisor Moses Kuria hinted at the plan set to launch in late December 2024
• Kuria noted that linking M-Pesa paybills as virtual electronic tax receipts will enhance the country’s tax base

TUKO.co.ke journalist Wycliffe Musalia has over five years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.

Traders and businesses using paybills will soon be integrated with Kenya Revenue Authority (KRA) tax systems.

President William Ruto’s administration announced plans to enhance revenue mobilisation through the linkage of M-Pesa paybills to electronic tax registers (ETRs)

When will govt link M-Pesa paybills to KRA?

Speaking during the Kenya Revenue Authority (KRA) Summit 2024 at Safari Park Hotel on Wednesday, October 9, Senior Economic Advisor Moses Kuria revealed that there are only 200,000 ETRs and boosting the number with digital payment players will increase the tax base.

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Kuria noted that plans are underway to integrate all paybills by December 25, 2024.

“We have decided that there will be nowhere to hide for anybody at zero option. Digital payment in the Kenyan economy is at another level envied by other countries.

“If you compile mobile money, banks and all other players in digital payment, you will get about 2 million of them. This speaks to the huge opportunity that I call the early harvest of digitising our revenue framework. That is what we are going to do. Come Christmas, all paybills will also be virtual ETRs for the purposes of KRA,” said Kuria.

Kuria said the economic council members agreed with KRA Commissioner General Humphrey Wattanga to integrate the paybills.

Why govt wants to link M-Pesa to KRA

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He added that paying taxes is everyone’s obligation, and linking merchants will enhance the tax base, thus lowering tax rates.

“When they come to the tax bracket, the government will be able to lower the income tax rate for them,” he said.

Earlier, Treasury Cabinet Secretary (CS) John Mbadi revealed plans to fully engage KRA in enhancing its revenue mobilisation.

Mbadi revealed he will work closely with the taxman starting November 2024, leveraging innovation to enhance tax collection.

“It is only through innovation that we can enhance efficiency in our revenue mobilisation efforts.

Treasury will fully engage KRA starting November 2024 to ensure full realisation of its mandate,” said Mbadi.

Source: TUKO.co.ke