With KRA now in charge, Kiambu property tax evaders can no longer hide
A street in Kiambu town. PHOTO| FILE| NATION MEDIA GROUP
What you need to know:
- The partnership is expected to avail the county leverage on KRA’s iTax platform, making payment possible through any of the 37 banks via the association’s gateway, as well as through mobile telephony.
- Governor William Kabogo said although his administration had successfully enhanced revenue collection in other sectors by digitising its systems, which has seen its annual revenues rise from Sh800 million in 2013 to Sh2.5 billion in 2016, they still face a huge challenge in collecting revenue from property owners.
The Kiambu County government has contracted the Kenya Revenue Authority (KRA) to collect property taxes on its behalf from next month with view to nabbing those who have been avoiding paying.
County secretary Fred Kitema, and county executive member for finance and economic planning, Ms Mary Nguli, and KRA’s Commissioner for Domestic Taxes, Mr Benson Korogo, signed a memorandum of understanding to guide the operations in Kiambu Town last month. It is the first such arrangement by a county.
The memorandum will be effective for three months and will also cover single-business permit fees.
The collaboration will include a joint enforcement approach, making it impossible for defaulters to continue operating undetected.
Ms Nguli expressed optimism that the arrangement will enable the county to collect the arrears in full before the end of the current financial year, which will increase its annual revenue collection from current Sh2.7 billion to Sh5.2 billion.
LEVERAGE FOR THE COUNTY
The partnership is expected to avail the county leverage on KRA’s iTax platform, making payment possible through any of the 37 banks via the association’s gateway, as well as through mobile telephony.
Governor William Kabogo said although his administration had successfully enhanced revenue collection in other sectors by digitising its systems, which has seen its annual revenues rise from Sh800 million in 2013 to Sh2.5 billion in 2016, they still face a huge challenge in collecting revenue from property owners.
The governor added that his administration wanted to take advantage of the establishment and experience of KRA in revenue collection to rein in the property sector as well as enhance revenue collection in other sectors.
“KRA already has a system for efficient revenue collection as well as reinforcement. They also have information on all taxpayers, including those in the property sector and, therefore, as a county, we want them to do what they do best [tax collection] on our behalf,” Mr Kabogo said.
The partnership, he said, will see all property owners who have not remitted rates by February denied tax compliance certificates, and to get them, they will be required to first pay the rates, the accrued interest as well as the penalties.
