By Jomo N. Kelvin
Revenue collection is the lifeblood of national development. Without it, socio-economic and even political growth stall.
Through leveraging technology, the Kenya Revenue Authority (KRA) has been at the forefront in propelling the country’s economic growth and transformation by ensuring that every coin collected from the taxpayers is put to good use. The Authority has not only expanded revenue collection over time but also protected consumers from harmful counterfeit goods. The fight against illicit trade is not just a government responsibility but one that every Kenyan should actively participate and fully support.
Counterfeit products pose serious risks beyond lost revenue. Many of these goods are dangerous to public health and safety. Recognizing the threats, KRA has implemented the Excise Goods Management System (EGMS), a groundbreaking initiative that ensures all excisable goods – including alcohol, soft drinks, bottled water, and tobacco – are affixed with excise stamps with track and trace functionality. These stamps help consumers verify authenticity while allowing KRA to track production, ensuring that businesses pay their fair share of taxes.
The impact of this system has been remarkable in significantly reducing the presence of counterfeits in the market. Additionally, EGMS has strengthened compliance among manufacturers, creating a more transparent and accountable business environment. As a result, Kenya is now seeing increased tax revenue, a major step toward reducing reliance on external borrowing and strengthening national development efforts.
Before the system was introduced, tax evasion, smuggling, and counterfeiting were rampant, depriving the government of billions in excise duty. Excise tax revenue from EGMS-covered products has seen year-on-year growth, with billions recovered that would have otherwise been lost. This progress directly supports funding of essential public services, which ensures that Kenyans receive the benefits they deserve.
Before KRA tightened its grip on excise tax collection, Kenya was losing substantial revenue due to tax evasion, smuggling, and counterfeit goods. These illegal activities created a black market where only a few benefited while millions of Kenyans suffered from underfunded public services. However, with advanced digital tracking, KRA has effectively averted the loss.
To further enhance tax compliance and enforcement, KRA is also in the process of introducing body cameras for its officers. This initiative aims to curb corruption, enhance transparency, and ensure that all tax enforcement activities are conducted with integrity. The body cameras will provide real-time recording of tax inspections, reducing cases of bribery and misconduct. This measure aligns with KRA’s broader strategy to leverage technology in securing tax compliance and protecting businesses that operate within the law.
In addition to increasing revenue collection, EGMS and other enforcement measures have significantly enhanced compliance efforts. Every extra shilling collected translates directly into better healthcare, improved education, and stronger infrastructure for all Kenyans. The platform has also gained international recognition for combating illicit tobacco trade, including awards from the World Health Organization (WHO).
KRA’s efforts go beyond tax collection; they are fundamentally about fairness and economic justice. When businesses comply with tax regulations, the playing field is levelled, allowing legitimate entrepreneurs to thrive without unfair competition from tax-evading traders. Moreover, strengthening tax compliance reduces Kenya’s reliance on borrowing, paving the way for more sustainable economic growth. For ordinary citizens, KRA’s work means safer products on store shelves, a healthier business environment, and improved public services.
Looking ahead, the success of Kenya’s economic future depends on compliance. The more businesses and consumers embrace KRA’s tax monitoring systems, the greater the revenue Kenya can generate for national development. It is, therefore, the responsibility of every Kenyan to support these efforts. The next time you buy a soft drink, bottle of water, or a pack of cigarettes, checking for the excise tax stamp should be second nature. This simple action not only ensures that the product is genuine but also reinforces the country’s tax system.
Kenya is making significant progress with increased tax revenue, fewer counterfeit goods, and a fairer business environment. As KRA intensifies its efforts, tax evaders and counterfeiters have nowhere to hide. Now more than ever, it is the responsibility of every Kenyan to support these initiatives. Always check for excise tax stamps, report suspicious goods, and choose compliance over shortcuts. A stronger Kenya starts with all of us.
Jomo is PR and Communications Strategist at Admedia Communications.
