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Speaking at a leadership summit for National Assembly members in Naivasha, Treasury Principal Secretary Chris Kiptoo said the proposals form part of the National Tax Policy and Medium-Term Revenue Strategy.
KRA Director-General Humphrey Wattanga said monthly domestic VAT receipts now range between Sh28 billion and Sh30 billion, compared to the Sh20 billion previously collected.
A central aspect of the reforms is relocating cargo that has overstayed at the port for more than 21 days to designated container freight stations. The operation will begin at the G-section of the port, freeing critical yard space and easing congestion.
Treasury records show KRA collected Sh1.161 trillion between July and December 2025, missing the Sh1.314 trillion needed to stay on track for its Sh2.627 trillion annual target.
The affected officers were among a team of 60 seconded to KRA’s investigations and enforcement department. In January 2023, they were returned to the National Police Service, with no prior explanation or guidance from KRA.
Muriithi said countries that have achieved high income status have done so by investing heavily in education, because economic growth depends on how productive people are.
December 2025 stood out as the most productive month of the year for KRA, with Sh251.52 billion collected, setting a new monthly record. Analysts attribute the strong performance to intensified compliance efforts and the deployment of modern tax management tools in the last quarter.
Introduced on December 27, 2024, reverse invoicing allows buyers, instead of suppliers, to generate tax invoices, making it easier for small businesses to participate in the formal tax system.
According to the directive, the process is intended to streamline verification and ensure that drivers operating on the platform meet their tax obligations as required by law.
According to KRA, the jurisdictions on the list will apply to CRS information returns for reporting periods starting January 1, 2025. Financial institutions covered under the reporting requirements are expected to ensure full compliance when preparing and submitting their returns.
In a notice released on Friday, December 5, the agency said the iTax system will be offline for four hours during the weekend to allow for essential system updates. Maintenance is set to begin at 8 pm on Friday, December 5, 2025, and will end at 12 am on Saturday, December 6, 2025.
Despite the tribunal’s decision, Equity Bank says it is caught between conflicting directives from KRA and the Asset Recovery Agency (ARA). Both institutions have issued instructions requiring opposing actions on the same accounts, leaving the bank in a legal dilemma.