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Kenya — monetary and fiscal authorities

Kenya Revenue Authority · KRA

The agency that collects every tax — income tax, VAT, excise, customs, capital gains, withholding — and assesses, audits, and prosecutes.

Mandate

Established by the Kenya Revenue Authority Act, 1995. Mandated to assess, collect, and account for all revenues in accordance with the written laws and the specified provisions of the written laws. Operates under the National Treasury.

How it works

Three main departments — Domestic Taxes (income tax, VAT, excise on Kenyan-source activity), Customs and Border Control (import/export duties), and Investigations & Enforcement. iTax is the integrated filing platform; eTIMS is the new electronic invoicing requirement; Customs uses ICMS. KRA negotiates and administers double-taxation treaties on behalf of the country.

Why it matters

KRA collects the revenue that funds everything else. If KRA misses its revenue target, the budget deficit widens and Treasury borrows more — directly raising bond yields, crowding out private credit. Tax-policy changes (Finance Acts, eTIMS rollout, the Affordable Housing Levy, the Social Health Insurance contributions) flow through household and business cash flows immediately.

What to watch

Annual revenue performance announcements (typically July, after fiscal year-end). Finance Bill / Act (June). KRA Annual Report. Notices and rulings on specific tax positions can move companies and sectors.