By Manu Mumba (KNA)
The National Treasury has introduced a series of initiatives aimed at expanding the tax base, improving transparency and fostering economic growth.
The initiatives include promoting accountability in public procurement, enhancing tax collection systems and supporting key sectors such as education to create employment and combat corruption.
The Cabinet Secretary for National Treasury and Economic Planning, John Mbadi, said at a press conference in Nairobi that the Ministry would implement a more comprehensive tax system that will expand the tax base.
“There are several taxable areas that have not been fully tapped. The Government, through the National Treasury, is committed to broadening this tax base,” Mbadi stated.
To enhance tax collection, Mbadi revealed that Kenya Revenue Authority (KRA) would enhance its digital system to improve efficiency.
“This digitisation aligns with the broader economic agenda of increasing revenue through a more efficient and expansive tax system,” he said.
Kenya’s tax revenue in the financial year 2023/2024 rose to Sh2.407 trillion from Sh2.166 trillion in the previous fiscal year, according to KRA. The Government is keen to collect more to reduce fiscal deficit and cut borrowing to finance its Budget.
Mbadi observed the National Treasury has taken steps to digitise public procurement processes to promote good governance and curb corruption.
“By automating budgeting and procurement systems, we aim to reduce the misuse of public funds and enhance transparency in Government spending,” Mbadi said.
To improve liquidity in the market, the CS said there would be prompt payment of pending bills, which is expected to stimulate job creation, especially for the youth.
“Paying off pending bills will boost market liquidity and create more opportunities for employment,” he noted.
Mbadi said there are ongoing discussions to reduce commercial banks interest rates for private sector borrowing.
To further strengthen accountability, Mbadi announced that the Government has rolled out an accrual accounting system, which will ensure that all liabilities are accurately reflected in the National Treasury’s balance sheets, improving financial transparency.
These reforms, aimed at boosting transparency and economic growth, represent a significant step toward creating a more accountable and efficient Government while positioning Kenya for sustained economic development.