The newly formed Kenya Revenue Authority (KRA) Department of Micro and Small Taxpayers has launched a crackdown on small-scale businesses evading taxes in a bid to expand its tax base.
The new department is now targeting businesses and individuals with a turnover of Ksh200 million and below.
Led by the acting commissioner of the department, George Obell, KRA revealed that micro and small businesses generate significant revenue but hardly remit it in taxes.
Obell noted that while the sector has a high number of registered taxpayers, its contribution to tax revenue remains minimal. "If you look at the contribution today, the medium, large, and government entities are only giving us just about 86 per cent; the other 14 per cent is coming from micro and small businesses," Obell said.
