Following a request by the Kenya Revenue Authority (KRA), a briefing meeting with a few KEPSA business leaders took place today, 17^th March 2025, to appraise the KRA Commissioner General, Mr Humphrey Wattanga, on some of the tax issues raised by businesses. These include delays in processing VAT refunds and the lack of a clear escalation framework.

The meeting is a precursor to the Private Sector CEO’s Tax Roundtable scheduled for Wednesday, 19^th March 2025, to be graced by Dr Chris Kiptoo, Principal Secretary of the National Treasury. It will discuss policy issues in Kenya’s tax administration and their impacts on the private sector, as guided by today’s meeting. They will include, but are not limited to:

1. The formula error in Credit Adjustment Vouchers which affects taxpayers in perpetual credit positions.
2. The need for a coordinated approach to KRA audits to minimize business disruptions.
3. A proposal to remit net balances after VAT refunds directly to the exchequer.
4. The planned automation of VAT refund processes to eliminate human intervention.
5. The compliance of government agencies with eTIMS to facilitate business transactions.
6. The impact of unstable tax policies across sectors, such as agriculture, particularly the shifting classification of fertilizer from zero-rated to exempt.

During the meeting, the KRA Commissioner General reassured the private sector of the Authority’s commitment to improving operational efficiency and affirmed KRA’s willingness to continue collaborating with KEPSA to raise awareness of initiatives that benefit businesses and the public. The need for continued collaboration with strategic stakeholders to enhance taxation policies, simplify compliance processes, and create a more conducive environment for investment in Kenya was emphasized.

The KEPSA Leadership team was led by the CEO, Ms. Carole Kariuki, and the Vice-Chairperson, Ms. Brenda Mbathi. Kenya Investment Authority (KenInvest) CEO Mr John Mwendwa also attended the meeting.