KRA to use NSSF data to track employees failing to remit PAYE
KRA to use NSSF data to track employees failing to remit PAYE
The Kenya Revenue Authority (KRA) is expected to intensify tax crackdowns by using data from the National Social Security Fund (NSSF) to identify workers who fail to declare Pay as You Earn (PAYE).
The latest move is part of a broader government strategy to boost domestic revenue collection and reduce the country’s reliance on borrowing.
Treasury officials disclosed on Thursday, July 30, during a session with the National Assembly’s Public Petitions Committee, which sought to know the measures taken to reduce Kenya’s reliance on borrowing.
Appearing before the committee, the Treasury’s Director General of Public Debt Management, Raphael Owino, revealed that the government has expanded the use of data-driven systems to identify tax defaulters.
As part of the measures to increase revenue collection, Owino said KRA is partnering with the NSSF to identify employers and employees who are not remitting PAYE.
According to the Treasury, KRA will cross-check NSSF contribution records with PAYE tax filings to identify individuals and businesses earning income but failing to meet their tax obligations.
“We are working with institutions such as the NSSF, for example, to find out who is contributing to NSSF but is not paying Pay As You Earn (PAYE),” Owino disclosed.
Similarly, the Treasury officials noted that the government is also planning to boost rental income tax collection, which continues to record low compliance despite the sector’s significant revenue potential.
Babu Owino installed as leader of Nairobi Luo Council of Elders
Kalonzo discloses planned Monday meeting with Uhuru Kenyatta
Ruto appointee joins DCP days after being sacked from government
Former CS Aisha Jumwa quits Ruto’s UDA
Ugandan officials join Kenya Pipeline Company (KPC) Board after UNOC acquires 20pc stake
Owino further noted that KRA will also work closely with Kenya Power to track landlords across the country who have defaulted or entirely failed to remit rental income tax.
“What we are doing is to make sure that now we work with companies such as Kenya Power to make sure that we know the people who own large properties but are not paying the rental income tax,” Owino told the committee.
He explained that the new measures seek to modernise KRA’s tax administration systems, which he said are currently outdated and unable to capture every taxpayer.
“KRA currently is using very outdated systems that do not capture the economy the way it is. So this is why the agenda of digitisation at KRA is very strong,” Owino said.
The revelations came as the committee questioned Treasury over Kenya’s rising public debt and the government’s strategy to reduce dependence on borrowing.
Committee Chairperson Muchangi Karemba raised concerns over the country’s debt burden, citing submissions from youth petitioners and the Controller of Budget indicating that public borrowing continues to increase every year.
Responding to the concerns, Owino admitted that Kenya’s debt levels remain high and acknowledged that the country is not yet in a comfortable fiscal position due to the huge resources being spent on debt servicing.
Somali President orders all senior officials holding Kenyan Passports, IDs to surrender them
UN issues warning to Museveni over crackdown on opposition and activists
IEBC responds over plan to scrap live transmission of presidential election results
Former Treasury CS Ndung’u accuses Ruto of overrunning Kenya’s institutions
