KRA Reforms Link rising Tax Collections to New Service-focused Model

Kenya’s rising tax collections are increasingly being tied to a shift in how the Kenya Revenue Authority (KRA) operates, as reforms under President William Ruto move the agency toward a more service-driven and structured model.

Recent data shows KRA collected Sh2.571 trillion in the 2024/25 financial year, up from Sh2.407 trillion in the previous year, a growth that comes alongside ongoing internal changes within the tax authority. The reforms focus on reorganising KRA to better serve different categories of taxpayers, while also improving efficiency and compliance.

Under the new structure, the authority has strengthened units that deal separately with large, medium, and small taxpayers, allowing for more targeted engagement and support. At the same time, KRA has introduced dedicated research and shared services functions, aimed at improving decision-making and streamlining operations across the institution.

The changes mark a departure from a system that largely relied on enforcement, toward one that combines taxpayer support, data use, and administrative efficiency to drive compliance. Officials believe that improving how taxpayers are served and understood will lead to more sustainable revenue growth, rather than relying mainly on pressure and enforcement measures.

The restructuring has also involved leadership changes, including new commissioner-level appointments and internal promotions, as part of efforts to align the organisation with evolving tax administration needs. For policymakers, the reforms signal a broader shift in strategy, where revenue performance is increasingly linked to how well the tax system is organised and managed.

NoAs the overhaul continues, attention is now turning to whether the new model can sustain revenue growth while also improving trust and cooperation between taxpayers and the authority.